MINIMUM SUPPORT PRICE AND ITS IMPACT ON AGRICULTURAL GROWTH AND FARMERS’ WELFARE

Abstract

Understanding the Minimum Support Price (MSP) system is still a big problem that has to be solved so that it can work to make sure India's long-term food security and agricultural sustainability. Only 32.7% of farm households know about the MSP program and its benefits, which suggests that a lot of people don't know about it. The initiative isn't as successful or useful because not many farmers know about it, so they can't completely benefit from it. The study also looks at how MSP affects food security and the long-term health of agriculture on a bigger scale. Farmers are more likely to grow certain crops, such rice and wheat, when the MSPs are higher. These items are very important for persons with limited resources. This change can cause a lack of coarse grains, too many of some crops, and problems in the agricultural ecology. There is also a concentration on places with little water. The research also demonstrated that elevated MSPs can induce inflation by increasing the cost of purchasing food grains. It is important to close the knowledge gap and balance MSP policies so that India's agriculture can grow in a way that lasts and everyone can get enough food.