What is minimum support price?

Price guaranteed by the government.

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Price available in the market.

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Extra price given by government to support farmers.

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Minimum price every farmer earns.

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Solution

The correct option is A Price guaranteed by the government.
Minimum support price is the price guaranteed by the government for a particular crop. If market value is lower than the minimum support price, then the government will buy the produce from the farmer by paying the Minimum support price. Announcement of minimum support price also acts as a check against the exploitation of the farmers by middleman and traders.

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