From NCERTAsked by Anonymous from Mountain View, United States2 Oct 2026, 8:10 AM ISTUpdated
In one line
MSP (Minimum Support Price) in India covers many main crops like wheat, rice, pulses, and more, to help farmers get fair prices.
Wheat — Genus of grass cultivated for grain Wheat is one of the main crops covered under MSP in India. Image: WikipediaRice — Cereal grain and staple food Rice (paddy) is also covered under MSP and is a staple food in India. Image: Wikipedia
The rule
The Minimum Support Price (MSP) is the price at which the government promises to buy certain crops from farmers to make sure they do not lose money if market prices fall.
Let's understand it simply
Imagine you grow wheat in your field. Sometimes, when you go to sell it in the market, the price is very low. You may not even get back what you spent. The government steps in and says, “If no one buys your wheat at a good price, we will buy it from you at a fixed price.” This fixed price is called MSP. It is like a safety net for farmers.
How it works
The government decides MSP for certain crops before the sowing season.
Farmers grow these crops knowing they will get at least the MSP.
If market prices go below MSP, the government buys the crops at MSP.
This helps farmers avoid big losses.
The crops are then used for public distribution or stored for future use.
How MSP works for crops
Government announces MSP before sowing
Farmers grow crops
If market price is low, government buys at MSP
Crops are stored or distributed
The story behind it
MSP started in the 1960s, during the Green Revolution. At that time, India needed to grow more food. The government wanted to encourage farmers to grow more by giving them a guaranteed price. This helped increase food production and made India more self-sufficient.
Where you see it in real life
Wheat: Grown in Punjab and Haryana, bought by the government at MSP if market prices fall.
Rice (Paddy): Grown in West Bengal, Andhra Pradesh, and Punjab, also covered under MSP.
Pulses (like moong, urad, arhar): Grown across India, MSP helps farmers when prices drop.
Cotton: Grown in Maharashtra and Gujarat, MSP supports cotton farmers.
Sugarcane: Grown in Uttar Pradesh and Maharashtra, has a fixed price similar to MSP.
Oilseeds (like mustard, groundnut): MSP helps these farmers too.
Why it matters
Protects farmers from sudden price drops in the market.
Encourages farmers to grow important crops needed for the country.
Helps keep food prices stable for everyone.
Supports rural families who depend on farming for their income.
Common mistakes
Thinking MSP is given for all crops: Only certain crops are covered, not every crop grown in India.
Believing MSP is the selling price everywhere: Sometimes, farmers may not get MSP if government buying is not active in their area.
Confusing MSP with market price: MSP is a minimum, not always the highest price a farmer can get.
Remember it
MSP is the government’s promise price for main crops like wheat, rice, pulses, and more — a safety net for farmers.
Check yourself
Name two crops covered under MSP in India.
Wheat and rice are both covered under MSP.
Why does the government set MSP for crops?
To protect farmers from low market prices and ensure they get a fair income.
Is every crop grown in India covered under MSP? Why or why not?
No, only certain main crops are covered to help manage food supply and support key farmers.
Quick recap
MSP covers main crops like wheat, rice, pulses, cotton, and oilseeds.
MSP is a fixed price set by the government to protect farmers.
Not all crops are covered under MSP.
MSP helps farmers avoid losses when market prices fall.
Written by the LLOS.ai tutor, checked against NCERT chapters.Asked by Anonymous from Mountain View, United States on 2 Oct 2026, 8:10 AM IST · asked 2 times
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