MSP is a form of market intervention by the government of India to protect agricultural producers against any sharp fall in farm prices. It is announced by the government for certain crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
According to the evaluation report of Niti Ayog related to Minimum Support Price (MSP), which of the following statement (s) is/are correct? (a) MSP is declared before the sowing season. (b) The idea behind MSP is to give guaranteed prices to the farmers and save them from price fluctuations. (c) With globalization resulting in free trade in agricultural commodities, it is not important to protect the farmers from the unwarranted fluctuations in prices.
Asked in TNPSC CS Prelims 2021 · Topic: Agriculture and Allied Sectors (Agricultural Policies and Programs (MSP, Subsidies))
More Economic Development questions
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- Which of the statements given below is/are correct ? 1. For the marketing year 2014 – 2015, the minimum support price (MSP) for wheat in India has been fixed at Rs. 1,400 / quintal 2. MSP is the rate at which the government sells the grains through the fair price shops Select the correct answer using the code given below :
- The price declared by the Government every year before the sowing season to provide incentives to the farmers is called