Minimum support price (India)

[1] It is approved by the government and aims to safeguard the farmer to a minimum profit for the harvest while at the same time increasing food security in the country.

[14] CACP in turn recommends the pricing according to a diverse range of factors including national requirements, available resources, farmer wages, cost of living and product competitiveness.

[16] Food Corporation of India (FCI) and the National Agricultural Co-operative Marketing Federation (NAFED) are involved in implementing the MSP at the state level.

[18][1] This body was reconstituted into the Commission for Agricultural Costs and Prices (CACP) in March 1985 with a new and broader terms of reference.

[22] A number of other institutions are involved in the process of implementing the MSP, including central organisation along with their state level bodies.

[21] At the same time the implementation of these price policies was biased and resulted in a decreased focus on diversification, creating shortages in pulses and edible oils.

[16] There are a number of different ways MSP is calculated and it is not always clear what is intended in policy documents such as 2018 Union budget of India.

[30] Disparity among states Skewed Procurement Ecological harm Fiscal burden Inflation WTO issue