MSP is essentially a form of market intervention undertaken by the government to provide a safety net to farmers in case of a price drop. It is a price for crops that the government guarantees to the farmers at all costs and under all circumstances.
This week, the government is likely to announce the MSP for only the Kharif crop since the Indian agricultural cycle is currently in the Kharif season.
The rise in MSP has been necessitated because of falling margins of profit for farmers, according to a report. This has caused widespread farm distress. The Centre aimed to double farmer incomes by 2022.
Farmers in Punjab and Haryana have taken to the streets, fearing that the farm bills will be the end of the MSP regime. Last week, Prime Minister Narendra Modi clarified, saying his government is committed to provide a fair price to farmers through MSP and government procurement will continue as before.
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