Impact of Minimum Support Price on Paddy Cultivation: A Micro Level Assessment

The present study aims at estimating the impact of minimum support price (MSP) on rice cultivation using a quasi-experiment-based robust research design, propensity score matching applied to household survey-based disaggregated primary data. Results indicate that MSP significantly impacts price realization in the disposal of paddy. Further, MSP has a fair influence on the marketed surplus of rice and the acreage devoted to the rice crop. The study finds important correlations between farmers’ decisions to avail MSP in rice. It has important policy implications from an implementation perspective to make it more effective to better off the paddy growers throughout the country.