In many developing countries, governments often use Minimum support prices (MSPs) as interventions to (i) safeguard farmers' income against crop price falls, and (ii) ensure sufficient and balanced production of different crops. In this paper, we examine two questions: (1) What is the impact of...

To mitigate the farmer poverty and income inequality, many developing countries have introduced subsidy schemes to improve the incomes of farmers. Two commonly observed schemes are the input-based subsidies, which aim to reduce the input purchasing costs of farmers, and the output-based...

In many developing countries, governments often use Minimum support price (MSP) as a subsidy scheme to (i) safeguard farmers' income against vagaries in crop prices, and (ii) ensure sufficient production of different crops. While there are different mechanisms to operationalize the MSP scheme,...

should the prevailing market price be below the pre-specified MSP. In this paper, we consider a market consisting of infinitesimally small, rational, and strategic farmers(with heterogeneous production costs) who face market and yield uncertainties. Our equilibrium analysis reveals that (i)...