MSP full form is Minimum Support Price. It is the lowest price above which government agencies like FCI(Food Corporation of India) and private agency purchased crops from farmers.
For example, the government has disintegrated the minimum support price of rice at ₹ 2000. The farmer will not get less than ₹ 2000 from the government, who will sell his rice to the government or any private agency they will get money on the basis of MSP.
MSP is designed by the government and is done before crop production. It determined by the government in the presence of CACP(Commission for Agricultural Costs and Prices).
MSP mainly has done for 25 crops like wheat, paddy, millet, maize, gram, peanut, soybean, mustard, etc. The first MSP for the wheat crop announced in the year 1966-67.
And gradually the MSP also fixed for all the other crops and in today’s date, it has increased to 25 growing crops.
The main objective of MSP is to increase the income of farmers.
If any farmer is of good quality, he will get more price than MSP.
The price of MSP increased every year but sometimes the price of MSP can also decrease.