- Statement 1: The Minimum Support Price (MSP) for various agricultural crops is fixed or determined by the Central Government, specifically by the Cabinet Committee on Economic Affairs (CCEA). This statement is correct. - Statement 2: The CCEA fixes the MSP based on the recommendations provided by the Commission for Agricultural Costs and Prices (CACP). This statement is correct. - Statement 3: MSP is the price at which the government agencies, like FCI, procure certain crops from farmers. However, it is not legally mandatory for all government agencies or market participants to procure all agricultural produce at MSP. Procurement policies vary by crop and state, and the effectiveness of MSP as a floor price depends on the extent of procurement and market conditions. The statement "MSP is mandatory for procurement of agricultural produce by the government agencies" is too absolute and not entirely reflective of the ground reality or policy design for all crops under MSP. This statement is incorrect.
Consider the following statements: 1. The Minimum Support Price (MSP) for agricultural crops is determined by the Central Government. 2. The MSP is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). 3. The MSP is mandatory for procurement of agricultural produce by the government agencies. Which of the statements given above are correct?
Asked in UPSC CAPF 2010 · Topic: Agriculture and Allied Sectors (Agricultural Policies and Programs (MSP, Subsidies))
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