Describe the negative effects of increase in Minimum Support Price (MSP) of foodgrains in India....

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Describe the negative effects of increase in Minimum Support Price (MSP) of foodgrains in India.
Key Concepts: Minimum Support Price (MSP)
i) The increase in MSP raises the maintenance cost of procured foodgrains by the government, and aleo raiees the traneportation and storage cost of the Food Cooperation of India.
ii) The procurement is concerntrated to the fero prosperous regions and mainly of wheat and rice. The increase in MSP has induced farmess to divest land from production of coarse grains to the
i: production of wheat and rice.
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