The pre-announced price at which the government offers to buy certain crops from farmers, to assure them a minimum return and protect them against a sharp fall in market prices.
- Recommended by the Commission for Agricultural Costs and Prices (CACP) and announced by the Cabinet Committee on Economic Affairs before the sowing season.
- Covers around 22 to 23 notified crops across kharif and rabi seasons, including paddy and wheat; verify the current list and rates.
- Procurement is mainly through the Food Corporation of India (FCI) and State agencies, feeding the public distribution system (PDS) and buffer stock.
- MSP is a policy support, not a legal right; demands for a legal guarantee have been a major farmer-movement issue.
- The Swaminathan Committee recommended MSP at cost plus 50 percent (the "C2 plus 50 percent" formula), a recurring debate point.
MSP, the CACP, and the FCI link to food security and agriculture, a frequent economy and current-affairs theme with a clear policy dimension.
MSP (a support price for procurement) is not the same as the issue price under the PDS or a market price; the CACP only recommends, the Cabinet decides.
Pre-sowing assured purchase price recommended by the CACP for around 22 to 23 crops; procured via the FCI; not a legal right.