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Minimum Support Price (MSP)
MSP is a price announced by the government for 22 major crops before each sowing season. If market prices fall below it, government agencies may buy the crop at MSP, mainly rice and wheat in practice.
Why It Matters
MSP shapes what farmers choose to grow, and the debate over it is one of the most charged in Indian politics.
In India
Wheat and paddy growers in Punjab and Haryana sell a large share of their crop at MSP, which is why those crops dominate the region.
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