How is Minimum Support Price (MSP) helpful for farmers and also for ensuring food security in India? Explain.
Minimum Support Price is helpful for farmers and for ensuring food security in the following ways:
- It provides an economic assurance to the farmers that motivates them to grow targeted crops. They cannot be exploited by middlemen for lower prices.
- Production of targeted crops increases. For example, India once an importer of wheat is now one of the largest producers of it and has huge surplus stocks catering to both domestic and international demands.
- Increased production also helped in achieving food security and catering to the requirements of National Food Security Act.