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Minimum Support Price is announced fay the government to provide:
  • a)
    incentives to farmers
  • b)
    incentives to middlemen
  • c)
    incentives to government officials
  • d)
    None of these
Correct answer is option 'A'. Can you explain this answer?
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Minimum Support Price is announced fay the government to provide:a)inc...
Explanation:

Minimum Support Price (MSP): It is the price announced by the government at which it purchases crops from the farmers directly or through authorized agencies in case of a bumper crop. The MSP is fixed to ensure that farmers get a fair price for their produce and are encouraged to grow more crops.

Incentives to Farmers: The main objective of MSP is to provide incentives to farmers to produce more crops and ensure that they get a fair price for their produce. By providing a guaranteed price for their crops, farmers are encouraged to invest in their crops, which leads to increased production, better quality, and higher yields. This, in turn, increases their income and helps in reducing poverty in rural areas.

Incentives to Middlemen: MSP does not provide any incentives to middlemen. In fact, MSP reduces the role of middlemen as the government procures crops directly from the farmers or through authorized agencies. This ensures that the farmers get a fair price for their produce and middlemen do not exploit them by offering very low prices.

Incentives to Government Officials: MSP does not provide any incentives to government officials. The government officials are responsible for implementing the MSP policy and ensuring that the farmers get a fair price for their produce. They are not entitled to any additional benefits or incentives for doing their job.

Conclusion: Thus, we can conclude that MSP is announced by the government to provide incentives to farmers and not to middlemen or government officials. It is an important policy to encourage farmers to produce more crops and ensure that they get a fair price for their produce.
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Minimum Support Price is announced fay the government to provide:a)inc...
MSP is declared even before sowing is done to encourage farmers so that farmers remain satisfied that they will not have to worry for selling the crop.If MSP would not be there, farmers would sell it to the market where people will do bargaining and not give enough money to farmer to start another crop and that is why farmer suicide cases are there.MSP is generally higher than market price.
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Minimum Support Price is announced fay the government to provide:a)incentives to farmersb)incentives to middlemenc)incentives to government officialsd)None of theseCorrect answer is option 'A'. Can you explain this answer?
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