A Study of Minimum Support Price, Farm Harvest Price and their effect on Area of Major Food-grain Crops of Gujarat

Abstract

An attempt has been made to see the effect of minimum support price (MSP) and farm harvest price (FHP) on area of major food grain crops such as paddy, jowar, maize, bajra, tur, wheat, and gram. Th results revealed that MSP and FHP for all the selected crops were significantly correlated in positive direction. Similarly, compound growth rate of MSP and FHP for all the crops were also found positive and significant staistically. In the case of area the positive and significant growth rate was found for paddy, wheat and gram crops and negative growth rate was found for bajra crop. Further, it was observed that there was no significant impact of MSP and FHP on area of major food grain crops except Bajra crop for which the regression coefficient of MSP was found to be negative and statistically significant. This indicated that there was negative impact of MSP on area of Bajra crop.