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.

Both the statements are correct.

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Both the statements are incorrect.

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Statement I is correct, but statement II is incorrect.

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Statement I is incorrect, but statement II is correct.

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Solution

The correct option is C Statement I is correct, but statement II is incorrect.
Minimum Support Price (MSP) is a pre-announced price declared by the government before the sowing season. It incentivises farmers to grow more crops. The foodgrains are then procured by the Food Corporation of India at the MSP and stored in granaries.

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Similar questions

Q. The Minimum Support Price acts as a penalty for the farmers.

Q16. Consider the following statements about Minimum Support Prices (MSP):

1. MSP is the price at which government purchases crops from the farmers, whatever may be the price for the crops.

2. The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Ministry of Agriculture.

Which of the above statements are correct?

Q. How does Minimum Support Price help a farmer?

(I). Many farmers have given up jute cultivation as it is no longer economically viable

(II). The textile ministry has proposed a hike in the minimum support price of jute

Q. If traders are unwilling to buy at Minimum Support Price (MSP), government agencies like _____ buy from the farmers at the fixed MSP.

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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.

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.