MSP, Mandis and the Farm Laws
What MSP Is
The minimum support price is the price at which the government promises to buy certain crops from farmers, acting as a floor against price crashes.
The minimum support price (MSP) is announced before each sowing season for 22 mandated crops, plus a fair and remunerative price for sugarcane.
Purpose
Protect farmers from sharp price falls and encourage production of key crops.
Who decides
The Commission for Agricultural Costs and Prices recommends, and the Cabinet approves.
Not a legal right
MSP is a policy promise; the government does not legally have to buy every crop at that price.
If the market price of wheat falls below MSP, government agencies buy at MSP, at least in states with active procurement.
Effective procurement is limited.
- MSP is a price floor.
- It covers 22 crops.
- CACP recommends it.
- It is not a legal guarantee.
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