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Green Revolution, Its Impact, and the Current Reforms to Develop the Agricultural Sector

What is Minim...

Question

What is Minimum support price?

Government buys crops from farmers at a cheap price.

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Government gives handouts to farmers.

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Price guaranteed by the government for a particular crop.

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Government buys the land and all of its produce from the farmers.

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Solution

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.

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Similar questions

Q. If traders are unwilling to buy at Minimum Support Price (MSP), government agencies like _____ buy from the farmers at the fixed MSP.

Q. Farmers are paid a pre-announced price by the government for their crops. It is called _______.

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?

Q. Statements:
I. The farmers have decided against selling their kharif crops to the Government agencies.
II. The Government has reduced the procurement price of kharif crops starting from last month to the next six months.

Q. The minimum assured price offered by the government to the farmers for the purchase of their output is called____________.

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