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Question

96. Government of India declares Minimum Support Price (MSP) for 25 notified agricultural commodities for each Kharif and Rabi crop season. Government procures these products through multiple agencies to ensure the availability of food grains. Consider the following statement with references to the procuring agencies.
1. National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED)is Central Nodal Agencies for procurement of Oilseeds, Pulses and Cotton under Price Support Scheme (PSS) of Government of India.
2. Food Corporation of India is the nodal central agency for procurement of wheat and paddy under Price Support Scheme (PSS).
3. Coarse grains are procured by State Government Agencies for Central Pool as per the direction issued by Government of India on time to time.
4. Agriculture Produce Marketing Cooperatives (APMC) of the respective state government deals mainly in horticulture products.
Which of the above statement(s) is/are correct?

A
Only 1 and 2
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B
Only 1, 2 and 3
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C
Only 2
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D
All of the above
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Solution

The correct option is D All of the above

The Government policy of procurement of Food grains has broad objectives of ensuring MSP to the farmers and availability of food grains.
1.
The procurement under Price Support is taken up mainly to ensure remunerative prices to the farmers for their produce which works as an incentive for achieving better production.
2. Government of India declares Minimum Support Price (MSP) for 25 notified agricultural commodities for each Kharif and Rabi crop season on the basis of the recommendation of the Commission of Agricultural Costs and Prices (CACP) which along with other factors, takes into consideration the cost of various agricultural inputs and the reasonable margin for the farmers for their produce.
3. National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) continues to be one of the Central Nodal Agencies for procurement of 16 notified agricultural commodities of Oilseeds including Copra, Pulses and Cotton under Price Support Scheme (PSS) of Government of India.
4. Fruits and vegetables are sold to the Agriculture Produce Marketing Cooperatives (APMC) of the respective state government, which also fix the price keeping in view their relative cost and, also ensure the farmer obtains a fair price. FCI, the nodal central agency of Government of India, along with other State Agencies undertakes procurement of wheat and paddy under price support scheme. Coarse grains are procured by State Government Agencies for Central Pool as per the direction issued by Government of India on time to time.


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