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Green Revolution, Its Impact, and the Current Reforms to Develop the Agricultural Sector

the governmen...

Question

the governmentbuys from farmers at MSP,even if thisprice is higher than the market price . state true or false .give reasons for your answer

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Solution

This statement is true. If MSP is higher than the market price then:

a. This way interest of the farmers are protected.
b. It gives incentives to farmers to produce more.

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