From Policy to Practice: Understanding the Effectiveness of MSP for Agricultural Households in India

This study examines the minimum support price (MSP) policy’s effectiveness in India, focusing on its impact across various crops and states. The analysis utilizes data from the National Sample Survey’s 77th round, covering over 58,000 rural households. It highlights that while MSP helps in buffering key crops like wheat and rice, other crops, especially pulses and oilseeds, often see less benefit due to limited procurement activities. The article identifies crucial factors such as state-level differences in MSP awareness and access to procurement agencies as significant determinants of MSP effectiveness. It suggests that enhancing the MSP framework could support a more equitable agricultural sector by expanding coverage to diverse crops and ensuring better market access for smallholders.