What are the features of Minimum Support Price (MSP)?

MSP is the minimum price for crops announced by the government.

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If no traders buy the produce at MSP, it is bought by agencies like the Food Corporation of India.

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Farmers cannot sell the produce at prices higher than MSP.

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Farmers can sell the produce at prices higher than MSP.

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Solution

The correct options are
A MSP is the minimum price for crops announced by the government.
B If no traders buy the produce at MSP, it is bought by agencies like the Food Corporation of India.
D Farmers can sell the produce at prices higher than MSP.
Minimum Support Price (MSP) is the price announced by government for crops. If no traders buy the produce at MSP, it is bought by agencies like the Food Corporation of India. Farmers can sell the produce at prices higher than MSP if traders are willing to buy the produce.

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