MSP meaning in Banking ?

Answer: What is Minimum Support Price mean?

The minimum support price (MSP) is an agricultural product price, set by the Government of India to purchase directly from the farmer. This is not enforceable by law. By definition, this rate is to safeguard the farmer to a minimum profit for the harvest, if the open market has lesser price than the cost incurred. The Indian government sets the price for 23 commodities twice a year.

MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP) since 2009.

reference

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