Question : Statement 1: The Minimum Support Price (MSP) is a legal entitlement for farmers and is applicable to all crops.
Statement 2: The MSP ensures a minimum profit margin for farmers and protects them from market fluctuations.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Correct Answer: Statement 1 is true, and statement 2 is false.
Solution : The correct answer is (c) Statement 1 is true, and statement 2 is false.
Statement 1 is true. The Minimum Support Price (MSP) is a legal entitlement provided by the government to farmers in India. It is applicable to various crops and ensures that farmers receive a minimum price for their produce.
However, statement 2 is false. While the MSP aims to provide a safety net to farmers by ensuring a minimum price for their crops, it does not guarantee a fixed profit margin or protect farmers from market fluctuations. The MSP is determined by the government based on factors such as the cost of production, market demand, and supply. It is meant to cover the cost of production and provide a fair return, but it may not always result in significant profits for farmers.
Farmers' actual profit margins depend on various factors such as the efficiency of their farming practices, input costs, productivity, market demand, and prices. Market fluctuations can still impact farmers' earnings, as the MSP does not shield them from price volatility in the open market.
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