Minimum Support Price (MSP) Boon or Bane: A Study on The Economic Impacts of MSP

Abstract

The Minimum Support Price (MSP) plays a vital role in India’s agricultural landscape, serving as a tool to promote food security and protect livelihood of farmers. This study explores how changes in MSP affect different aspects of the agricultural economy, from the area farmers devote to certain crops, to export volumes, and ultimately, their incomes. By combining regression analysis with content-based insights, the research examines both the measurable impact of MSP on cultivation patterns and its broader influence on agricultural exports. It also considers how factors like crop type, regional variation, and market conditions shape these outcomes. While MSP provides income stability for many farmers, it can also lead to unintended consequences such as market imbalances and fiscal pressures. The study concludes with policy suggestions contributing to the ongoing studies on how to strengthen agricultural policy in India.