[cd explains] How does MSP work?

  1. Government fixes MSPs of various kharif & rabi crops every year. Commission for Agricultural Costs & Prices (CACP) takes care of this.
  2. Procurement under MSP is undertaken by the designated Central and State Government agencies and Cooperatives.
  3. Producers have the option to sell their produce to Government agencies or in the open market as is advantageous to them.
  4.  States/UTs have been advised to amend their respective State APMC Acts on the lines of Model Act, 2003.

The Model Act provides for direct marketing, contract farming, farmers/consumer markets, setting up of markets in private and cooperative sectors, e-trading etc.

Minimum Support Prices for Agricultural Produce
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