Question
Government of India announces Minimum Support Prices
(MSP) each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP). For how many crops is the MSP announced every year?ÂSolution
The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers.
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