International Journal of Agriculture Extension and Social Development

author(s)
Dr. K Malathi and C Devi

abstract
The Minimum Support Price (MSP) regime in India has played a pivotal role in shaping the country’s agricultural landscape since its inception in the 1960s. Introduced to ensure price stability and safeguard farmers against distress sales, MSP has evolved into a cornerstone of India’s agricultural policy. This paper traces the origin of MSP, highlights the reason for its conception, and assesses whether the current functioning attains the goals that had been set for it. The paper sets out to assess whether the sub normal coverage of the regime in terms of crops, farmer beneficiaries and the benefits that seem to accrue to only the niche, is worthwhile for the budgetary burden that this regime regularly imposes. The paper concludes that despite the limited coverage of the scheme, the direct and the indirect benefits that it bestows on the economic system in general and the agricultural ecosystem in particular does have its ripple effect. Designing the regime to be all - pervasive and all - encompassing has to remain in the radar of the policy makers.