Minimum support price

 

Answer:

Answer to be written in the exam:  

Minimum Support Price:

  • The FCI purchases wheat and rice from the farmers i n states where there is surplus production. 

  • The farmers are paid a preannounced price for their crops . This price is called Minimum Support Price (MSP).

  • The MSP is declared by the government every year before the sowing season to provide incentives to farmers for raising the production of these crops.
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Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.