Question

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?

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) Neither 1 nor 2

Answer 1

The correct option is C

c) Both 1 and 2

Minimum Support Prices (MSP)

• MSP is the price at which govt purchases crops from the farmers, whatever may be the price for the crops.
• The MSP helps incentivize the farmers and thus ensures adequate food grains production in the country.
• The MSP helps incentivize the farmers and thus ensures adequate food grains production in the country.

The MSP helps incentivize the farmers and thus ensures adequate food grains production in the country.

• 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 Commission for Agricultural Costs and Prices (CACP).
• CACP has two non-official members from farming community.
• CACP has two non-official members from farming community.
• Subsequently, the center announces MSPs for 24 major agricultural commodities, including sugarcane, before each season.
• MSP announced for both RABI and Kharif SEASONS.