Question

Consider the following statements :

1. Minimum support price is announced by the State governments.
2. Minimum support price is announced well before sowing.
3. Minimum support price is announced at the time of harvest.
4. Minimum support price is announced by the Central government.

• A. iv only correct
• B. iii, iv correct
• C. ii, iv correct
• D. All are correct

Answer 1

Answer:

C. ii, iv correct

Minimum Support Price (MSP)

• The Minimum Support Price (MSP) is a price at which the government purchases crops from farmers, ensuring them a minimum guaranteed price for their produce.
• MSP acts as a price floor for certain agricultural commodities.
• It is the minimum price at which the government agrees to buy crops from farmers, providing them with a safety net against falling market prices.
• MSPs are typically announced for specific crops like rice, wheat, cotton, sugarcane, pulses, and oilseeds. These are often referred to as "MSP crops."
• MSPs are a part of agricultural price support policy aimed at protecting the interests of farmers, particularly in the context of price fluctuations and market uncertainties.
• Minimum support price is announced by the Central government of India.
• Minimum support price is typically announced well before sowing to provide farmers with clarity and encourage the cultivation of specific crops.
• MSPs are announced before sowing, not at the time of harvest.