How does the concept of MSP benefit farmers in India

The concept of Minimum Support Price (MSP) benefits farmers in India by providing them with a guaranteed price for their crops, thereby ensuring a minimum level of income security. When the Centre offers contract-based assured buying on top of MSP for crops such as wheat, rice, sugarcane, cotton, and pulses, it further enhances the benefits for farmers in the following ways:

• This system gives farmers the confidence to invest in their crops, knowing that there is a guaranteed buyer.
• It helps in reducing market price fluctuations and volatility, providing stability to farmers' income.
• Contract-based assured buying encourages farmers to produce high-quality crops, as they have a confirmed market for their produce.

Overall, the combination of MSP and contract-based assured buying can positively impact farmers by ensuring price security and promoting agricultural growth.