Legal Guarantee of Minimum Support Price (MSP) and Indian Agriculture- Issues and Options

The Minimum Support Price (MSP) is a key element of India's agricultural policy, aimed at protecting farmers from market price volatility and ensuring they receive a fair return for their crops. The paper critically examines the role of the Minimum Support Price (MSP) in India's agricultural sector, addressing the ongoing debate over the need for a legal guarantee of MSP. Through a balanced analysis, it presents arguments both for and against the legal guarantee of MSP, acknowledging concerns over market distortions and fiscal burdens. Suggestions for improving farmers’ incomes, such as investment in infrastructure, price stabilization mechanisms, and income support schemes, are discussed. The paper concludes by emphasizing the need for comprehensive reforms in the MSP system, advocating for a balanced approach that incorporates global best practices and modernizes market mechanisms, rather than solely relying on legal guarantees to sustain the agricultural economy.