Minimum Support Price

Q. When does the government announce the minimum support price?

1. After the sowing season
2. Before the sowing season
3. After the procurement of crops
4. MSP is always the same.

Q. Which of the following is/are not correct?

1. FCI stands for Food Corporation of India.
2. MSP stands for Maximum Support Price.
3. PDS stands for Public Distribution System.
4. HYV stands for High Yielding Varieties.

Q. Which of the following are the chief objectives of setting up the MSP?

1. To support farmers from distress sales
2. To create a government monopoly in the sale of foodgrains
3. To procure foodgrains for public distribution
4. To take away the profits of farmers

Q. Choose the correct option.

Statement I: Minimum Support Price acts as an incentive for farmers to grow more crops.

Statement II: Minimum Support Price is determined by the farmers.

1. Both the statements are correct.
2. Both the statements are incorrect.
3. Statement I is correct, but statement II is incorrect.
4. Statement I is incorrect, but statement II is correct.

Q. What does MSP stand for?

1. Maximum Support Price
2. Maximum Supply Price
3. Minimum Supply Price
4. Minimum Support Price