Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> In India, what does the minimum support price for a crop indicate?

• A. Price guaranteed by the government
• B. The market price of the crop
• C. Extra price given by government to support farmers
• D. Minimum price every farmer earns

Answer 1

The correct option is A Price guaranteed by the government

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Minimum support price is the price guaranteed by the government for a particular crop. If the market value is lower, the government will buy the produce from the farmer by paying the minimum support price. Announcement of a minimum support price acts as a check against the exploitation by middlemen and traders.