Farmers and consumers primarily benefit from the Minimum Support Price (MSP).
The MSP system is designed to offer several advantages:
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Income Security for Farmers: MSP provides a safety net by guaranteeing farmers a minimum price for their crops. This protects them from market volatility and ensures a stable income, even if market prices fall below the cost of production.
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Price Stability: MSP helps stabilize the prices of agricultural products in the market. This prevents drastic price fluctuations that can harm both farmers and consumers. By setting a floor price, MSP ensures that farmers receive a reasonable return for their produce, while preventing excessive price increases that could burden consumers.
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Increased Production: By guaranteeing a minimum price, MSP encourages farmers to invest in better agricultural practices and increase production. This can lead to greater food security for the country.
While consumers may indirectly benefit from stable prices, the primary and direct beneficiaries are the farmers who are assured of a minimum income regardless of market fluctuations.
