The price declared by the Government every year before the sowing season to provide incentives to the farmers is called
buffer price
issue price
minimum support price
fair sustenance price
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This question was previously asked in
UPSC CAPF – 2021
The Minimum Support Price (MSP) is the price set by the Government of India for certain agricultural produce, to protect the farmer against excessive falls in farm prices during bumper production years. It is announced by the government before the sowing season for certain crops, providing a price guarantee and acting as an incentive for farmers to cultivate those crops. The idea is to ensure a minimum profit for the farmers and encourage crop production.