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Question : Statement 1: The Minimum Support Price (MSP) is determined by the Cabinet Committee on Economic Affairs (CCEA).

Statement 2: The MSP is revised annually to account for changes in input costs and market conditions.

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.


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Both statements are true.
 


Solution : The correct answer is (a) Both statements are true.

Statement 1 is true. The Cabinet Committee on Economic Affairs, which is a committee of the Union Cabinet in India, is responsible for determining the MSP for various agricultural crops. The committee takes into account various factors such as input costs, market conditions, and the overall welfare of farmers while setting the MSP.

Statement 2 is also true. The MSP is revised by the government on an annual basis to reflect changes in input costs, market conditions, and other relevant factors. The revision aims to provide farmers with a fair and remunerative price for their produce, considering the cost of production and prevailing market dynamics.

Therefore, both statements are true. The MSP is determined by the Cabinet Committee on Economic Affairs, and it is revised annually to account for changes in input costs and market conditions.

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