MSP is a form of market intervention by the Government of India to insure agricultural producers against anysharp fall in farm prices to protect the producer- farmers- against excessive fall in price during bumper production years.The effectiveness of price policy at the state level involves the availability of market infrastructure at the state level and theinitiative taken by the state Governments to create an institutional structure for monitoring of agricultural prices. The studywas conducted during the year 2015-16 using the secondary data pertaining to the MSP for different crops and open marketprices for redgram and bengalgram in selected markets of Vijayapura and Gadag taluka. Compound growth rate werecomputed to comprehend the annual growth in MSP of agricultural commodities for the period from 2000-01 to 2015-16.It is revealed that the annual growth rates for MSP for all commodities were found to be positive. The growth rate of MSPfor redgram and bengalgram were 11.04 per cent and 8.28 per cent respectively. The increase in MSP was not equitable toall the crops. Both open market prices and MSP shown increasing trend but most of the years, open market prices for bothredgram and bengalgram were higher than the MSP in all the selected markets of Vijayapura and Gadag and the percentagedifferences were not high. The influence of MSP on market price was not significant in bengalgram and redgram. Hence thereis need to bring some improvement in the price policy to different crops in ensuring highest returns to the farmers tocontinue their production with the increase in cost of inputs especially the crops like bengalgram and redgram.