medisys core
PROJECT REPORT
ON
MINIMUM SUPPORT PRICE IN INDIAN ECONOMY
Table of Contents
1 Introduction
1.1 What is a Minimum Support Price?
1.2 What is the need for MSP?
1.3 How Government decides MSP?
1.4 List of product that receive MSP
2 MSP Policy of Wheat
2.1 Introduction
2.2 How did MSP policy of wheat come into picture?
3 Justification of MSP for Wheat
4 MSP Pricing of Wheat – Higher or Lower
4.1 High MSP – Increases Inflation
4.2 Low MSP – Farmer’s Income Affected
5 Critical Analysis of MSP Policy
5.1 Consumer Surplus
5.2 Producer Surplus
5.3 Deadweight Loss
5.4 Other Effects
5.5 Measures to minimize MSP expenditure
6.0 Bibliography
1. Introduction
Minimum Support Price
Minimum Support Price is the price at which the government purchases crops from the farmers, no matter whatsoever might be the cutthroat balance price for the crops.
A price floor, which is also known as minimum price, sets the lowest level possible for a price. Price floors/minimum prices only have a result if they are set above the actual market clearing price. There are many examples of government in the real world that set price floors, such as establishing a national minimum wage for labor to confirm that individuals are able to earn a ‘living wage’. In addition, given the uncertainity of agricultural prices and the demand to ensure food security, farm prices might be set which ensure the lowest price to farmers. Need for MSP
The main reason why government fixes minimum support
ON
MINIMUM SUPPORT PRICE IN INDIAN ECONOMY
Table of Contents
1 Introduction
1.1 What is a Minimum Support Price?
1.2 What is the need for MSP?
1.3 How Government decides MSP?
1.4 List of product that receive MSP
2 MSP Policy of Wheat
2.1 Introduction
2.2 How did MSP policy of wheat come into picture?
3 Justification of MSP for Wheat
4 MSP Pricing of Wheat – Higher or Lower
4.1 High MSP – Increases Inflation
4.2 Low MSP – Farmer’s Income Affected
5 Critical Analysis of MSP Policy
5.1 Consumer Surplus
5.2 Producer Surplus
5.3 Deadweight Loss
5.4 Other Effects
5.5 Measures to minimize MSP expenditure
6.0 Bibliography
1. Introduction
Minimum Support Price
Minimum Support Price is the price at which the government purchases crops from the farmers, no matter whatsoever might be the cutthroat balance price for the crops.
A price floor, which is also known as minimum price, sets the lowest level possible for a price. Price floors/minimum prices only have a result if they are set above the actual market clearing price. There are many examples of government in the real world that set price floors, such as establishing a national minimum wage for labor to confirm that individuals are able to earn a ‘living wage’. In addition, given the uncertainity of agricultural prices and the demand to ensure food security, farm prices might be set which ensure the lowest price to farmers. Need for MSP
The main reason why government fixes minimum support