Question

What is Minimum support price?

• A. Government buys crops from farmers at a cheap price.
• B. Government gives handouts to farmers.
• C. Price guaranteed by the government for a particular crop.
• D. Government buys the land and all of its produce from the farmers.

Answer 1

The correct option is C Price guaranteed by the government for a particular crop.

An issue that farmers face is the volatility of the price. In order to tackle problems created by this, especially during bumper crop seasons, the government introduced a minimum support price. Minimum support price is the price guaranteed by the government for a particular crop.