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.
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.
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.
Question : Statement 1: The minimum support price (MSP) is a government-regulated price at which crops are procured from farmers.
Statement 2: The MSP is determined by the Food Corporation of India (FCI).
Question : Statement 1: The Minimum Support Price (MSP) is determined by considering factors such as input costs and market conditions.
Statement 2: The MSP applies to all agricultural crops grown in India.
Question : Statement 1: Agricultural marketing ensures that farmers receive a fair share of the consumer price.
Statement 2: Agricultural marketing involves the elimination of intermediaries in the supply chain.
Option 1: Both statement 1 and statement 2 are true.
Option 2: Both statement 1 and statement 2 are false.
Option 3: Statement 1 is true, but statement 2 is false.
Option 4: Statement 1 is false, but statement 2 is true.
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