This study investigates the impacts of the Minimum Support Price (MSP) on agricultural productivity, employment opportunities, and environmental sustainability in India’s northern states for the duration of 2000-2020. Amid ongoing debates regarding MSP's effectiveness, this research provides empirical insights into MSP's role in shaping key agricultural metrics. Employing a panel data analysis methodology, the research scrutinizes historical MSP data for major crops and examines associated metrics, including crop yields, agricultural employment rates, and environmental indicators such as water usage and soil health. The results indicate that higher MSP levels correlate positively with increased agricultural productivity and employment rates, suggesting that MSP is an effective mechanism for enhancing farm income and job security in rural areas. However, the relationship between MSP and environmental sustainability is complex; the data suggests that elevated MSP may lead to increased water use and soil degradation due to more intensive farming practices. These findings highlight the necessity of integrating sustainable agricultural practices within the MSP framework to balance economic advantages with environmental preservation. This study enriches the policy discourse by offering a nuanced understanding of MSP's diverse impacts, thus informing future agricultural policy development in India.
Keyword: Minimum Support Price, Employment Opportunities, Environment, Agriculture Productivity, Panel data Analysis