Definition: Minimum Support Price (MSP) is a form of market intervention in which the government guarantees a minimum price to farmers to protect them from a sharp fall in market prices.

Key Points:

• MSP is announced by the Cabinet Committee on Economic Affairs (CCEA).
• Recommendations are given by the Commission for Agricultural Costs and Prices (CACP).
• MSP is declared for 22 mandated crops, but procurement is not legally guaranteed.