Objectives: To study a two-decade economic analysis of Minimum Support Price (MSP) trends compared to the cost of production of major crops of India and understand the real impact of price policy formed by the Government of India. Methods: The period of the analysis is from 1999 to 2019 (20 years) and the data sources consulted are Cost of cultivation and Farm Harvest price from Directorate of economics and statistics, Minimum support price from Commission for Agricultural Costs and Prices (CACP) and Awareness report of farmers by Questioner based survey. Compound annual growth rate and percentage analysis are used as a statistical tool for this research. To access the impact, Tamil Nadu has been taken as the model state with two model crops Paddy and Cotton and its comparative analysis is done with reference states Punjab and Maharashtra for Cost of Cultivation components and Profitability.  Findings: The finding of this research unravels that Wheat, Groundnut and Cotton are getting supported largely due to MSP policy, Paddy and Black gram are barely supportive as there is cutthroat competition between MSP and the Cost of Cultivation and sugarcane is not supported by MSP policy. The comparative and profitability analysis unravels how labour cost is the major cost in Tamil Nadu and paddy is profitable whereas cotton is not. Novelty: Therefore, this research depicts that MSP has been supporting the farming community on the policy end. But it’s not working as a fundamental supporting system for the majority of farmers as it’s not exercised by majority of farmers due to low awareness and inefficiency of the system.

India is the respectable producer of most of the food grains in the world despite such a large production we are the 102nd rank in global hunger index 2019 and one of the most starving nations of the world. For a country like India production is not a problem anymore but the food available for human consumption is the problem as there is a huge amount of food loss in the marketing chain  [1,2,3]. India losses a large amount of its production in post-harvest activities due to under established supply chains and poor infrastructure. So, this paper studies the effect of post-harvest losses on the cost of food production in the long-terms both empirically (Simple regression analysis) and theoretically (law of Scarcity by Lionel Robbins) from 1997 to 2017 and unravels that they are positively correlated i.e., post-harvest losses are one of major determining factor for actual price hike in the cost of cultivation of major agriculture commodities in India.

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