A more thorough explanation:

Definition: A support price is a minimum price set by the government or a producer group to ensure that farmers receive a fair price for their crops or livestock. This price is usually higher than the market price and is intended to provide a safety net for farmers in case of low market prices or crop failures.

Example: The Indian government sets a support price for wheat to ensure that farmers receive a fair price for their crops. The support price is currently set at Rs 1,975 per quintal, which is higher than the market price of Rs 1,800 per quintal. This ensures that farmers are able to cover their production costs and make a profit.

Explanation: The example illustrates how a support price works in practice. By setting a minimum price for wheat, the Indian government is able to protect farmers from fluctuations in the market and ensure that they receive a fair price for their crops. This helps to stabilize the agricultural sector and provides a safety net for farmers in case of low market prices or crop failures.