This house would replace the Minimum Support Price system with the Price Deficiency Payments system

This house would replace the Minimum Support Price system with the Price Deficiency Payments system

Date set
Sept. 5, 2025
Tournament
Drexel
Topics
Public Policy, Economics
Background slide

In India, the Minimum Support Price (MSP) system allows farmers to sell unlimited quantities of their crops directly to the government at a guaranteed price (ie, a “minimum support price”). Under a Price Deficiency Payments system, farmers must sell their crops on the open market, but the government compensates farmers for the difference between the government’s “target prices” and the crops’ actual prices on the open market.