MSP Full Form
MSP Full Form- What is MSP? It is a government initiative to ensure that farmers get their share of monetary value no matter how much a fall in price has occurred. It is a guaranteed price that farmer receives from the government.
Hence, MSP Full Form is mentioned below :
|Minimum Support Price|
What is MSP?
Here are the details:
1. MSP by farmers at Minimum Support Price (MSP) for all crops by the government.
2. MSP to all scheduled crops for the country including agricultural labour.
3. Prescribed Agriculture Produce Market Committee (APMC) norms for selling produce to traders
4. MSP by the APMC for all perishable produce for the country
5. Guaranteed MSP for all horticultural produce like fruits, vegetables, cereals, dairy products.
6. Minimum Minimum Support Price (MSP) for all commercial and large farmers for the crops from the first of the kharif crop of wheat and paddy to sugarcane and oilseeds
7. Whether wheat and paddy should be exempt from MSP regime to ensure that they get paid at least Rs 1,500 per quintal as promised by the BJP government.
When to use MSP?
Almost 70% of the state-level farmers do not get this price. They only get a 50% of the production cost price. The remaining must be done through state and central government subsidy. So MSP is the only avenue available for state-level farmers to secure their share of the income and ensure that they make some profit at the same time. 4. Buy Down Your Own Overheads to Reduce Cost of Production You might want to make a long list of everything you need to buy for your factory. Now, how can you pay for the things you already bought but don’t really need? Buying down your overheads is one good way to save money. Buying down the expenses of your factory means you can keep on saving more.
How to use MSP?
1. MSP is to be given to a farmer as a grant with a mark-up. This means that the MSP is not the minimum price that is required, and in most cases the government does not give money directly to the farmer, but provides the funds to the traders who then pay the difference to the farmer.
2. The government is providing the funds to the traders and the traders buy the crops and sell at the MSP.
3. The trader keeps the difference from MSP.
4. The government collects the money from the trader and is paying the farmer at the MSP. 5. The government also takes the money received from the trader for the supplies and sells it to its own farmers as well. 6. The government gets money from farmers, who then sell to the government at a lower price.
What are the benefits of MSP?
Every state of India has adopted the MSP policy but unfortunately the national price does not reach up to the standards set by the state governments. It is set by the government according to the interest of the farmer and what is best for the farmer. The government of India has the main responsibility to bring down the rates of MSP and make it uniform throughout India. The current MSP price of most states is Rs.2075/quintal for wheat, Rs.4400/quintal for paddy and Rs.3900/quintal for rice. These are not prices set by the farmers and it is the responsibility of the government to bring down the prices to the current farmers price. In some states, the prices have dropped and farmers are losing their profit because of the low MSP price.
What are the disadvantages of MSP?
The main disadvantage of MSP is that the minimum support price which is provided to farmers per hectare cannot take into consideration seasonal fluctuations in the market. This then can bring about huge gaps in farm income and employment. Government of India has taken this a step ahead by providing assured support prices (ASP) to farmers which will help the government in overcoming the disadvantages of MSP and hopefully, the benefit of MSP will reach all farmers in the country. The cultivation of pulses is a seasonal crop and so these pulses need to be planted in the months of November and December. The government also provides support price of $850 for dry pulses and $850 for all of pulses including urad, tur, moong, and black gram.
There are many benefits from MSP as a business owner. It will protect you from unpredictable costs. Also, you will be able to guarantee yourself a lot of money that will help you to manage your funds better and in the long run.
FAQs about MSP :
- It was introduced in the Mid 1970s.
- It is only applicable to the agriculture sector.
- Cereals, Pulses, Oilseeds and Commercial crops are commodities of MSP.
- The Government has fixed MSP for 23 crops.
- The prices of Rabi and Kharif Crops are different.