Which price is declared by the government every year before the sowing season to provide incentives to the farmers for raising the production of their crops?

The correct answer is Minimum Support Price.

The minimum support price is the price is declared by the government to insure agricultural producers against any sharp fall in farm prices.

Additional Information

• It is announced by the government of India every year before the sowing season and provides incentives to the farmers for raising the production of their crops.
• The crops were selected based on the recommendations of the commission for agricultural costs and Prices(CACP).
• If the market price for the commodity falls below the minimum support price due to the issues in the market, government agencies purchase the entire quantity at the announced minimum price.
• In India, there are twenty-two crops covered under Minimum Support Price.
• The 22 mandated crops under MSP consist of 14 Kharif crops, 6 rabi crops, and two other commercial crops.
• Some important minimum support price crops in India are:
  • Paddy, wheat, barley, jowar, bajra, maize, and ragi.
  • Gram, arhar/tur, moong, urad and lentil.
  • Groundnut, mustard, sunflower seed, sesamum, and safflower seed.