Question : Statement 1: The Minimum Support Price (MSP) is determined by the Ministry of Agriculture and Farmers Welfare
Statement 2: The MSP ensures a fair price to 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:
Both statements are true.
Solution : The correct answer is (a) Both statements are true.
Statement 1 is true. The Minimum Support Price (MSP) is indeed determined by the Ministry of Agriculture and Farmers Welfare in India. The MSP is announced by the government for various agricultural commodities to provide a benchmark price at which the government procures crops from farmers.
Statement 2 is also true. The MSP aims to ensure a fair price to farmers and protect them from market fluctuations. It serves as a price floor for farmers, assuring them a minimum price for their produce. This helps in providing income security to farmers, encouraging agricultural production, and safeguarding them from adverse market conditions.
Therefore, the correct answer is that both statements are true.
