Procurement of agricultural commodities is the purchase of food grains by the central or state governments.
MSP
Effectiveness of MSPs
MSP has distorted cropping patterns, with excessive focus on the cultivation of wheat, rice and sugarcane in the procurement states at the expense of other crops such as pulses, oil seed and coarse grains. It has also resulted in depletion of water resources, soil degradation and deterioration in water quality in some states, especially in the north-western region. At the same time, it has discriminated against eastern states where procurement at the MSP is minimal or non-existent.