The economic contribution of the minimum support price (MSP) to the cost of production of pulse crop in Karnataka

The minimum support price (MSP) is an important component of the agriculture price policy in India. This study, based on secondary data compiled from different sources, analyses the gap between the cost of production of red gram in Karnataka and its MSP. Its findings show that the MSP computation at the national level has the potential to fully or partially cover the cost of production of the crop in different proportions. The possibility of widening the coverage should be considered by the Directorate of Economics and Statistics and the Commission for Agricultural Costs and Prices while arriving at MSP policy.