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Consider the following statements.
1. Commercial crops are not covered under minimum support prices (MSPs).
2. If MSP is legally binding, no crop can be bought by private buyers below the MSP.
3. The marketed surplus for all the crops covered under MSP is more than 50%.
1. Commercial crops are not covered under minimum support prices (MSPs).
2. If MSP is legally binding, no crop can be bought by private buyers below the MSP.
3. The marketed surplus for all the crops covered under MSP is more than 50%.
Which of the above statements is/are correct?
- a)1 and 2 only
- b)1 and 3 only
- c)2 only
- d)2 and 3 only
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements.1.Commercial crops are not covered u...
How can MSP be made legally binding?
There are two ways it can be done.
There are two ways it can be done.
- The first is to force private buyers to pay it. In this case, no crop can be purchased below the MSP, which would also act as the floor price for bidding in mandi auctions.
- The second route is, of course, the government itself buying the entire crop that farmers offer at the MSP.
- Commercial crops like cotton, copra and raw jute are covered under MSP.
- The marketed surplus ratio for different crops is estimated to range from below 50% for ragi and 65-70% for bajra (pearl-millet) and jowar (sorghum) to 75% for wheat, 80% for paddy, 85% for sugarcane, 90% for most pulses, and 95%-plus for cotton, jute, soyabean and sunflower.
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Consider the following statements.1.Commercial crops are not covered u...
Explanation:
Statement 1: Commercial crops are not covered under minimum support prices (MSPs).
This statement is correct. The minimum support price (MSP) is a price set by the government to protect farmers from any sharp fall in crop prices. However, MSPs are generally announced only for major crops such as wheat, rice, maize, and pulses. Commercial crops like cotton, sugarcane, and oilseeds are not covered under the MSP system.
Statement 2: If MSP is legally binding, no crop can be bought by private buyers below the MSP.
This statement is correct. When the government announces an MSP, it becomes a legally binding price. Private buyers are not allowed to purchase crops from farmers below the MSP. However, this does not mean that private buyers are obligated to buy crops at the MSP. They can choose to buy at a higher price, but not below the MSP.
Statement 3: The marketed surplus for all the crops covered under MSP is more than 50%.
This statement is incorrect. The marketed surplus refers to the quantity of a crop that is sold in the market after meeting the farmer's own consumption needs. While it is difficult to provide an exact percentage, it is generally observed that the marketed surplus for crops covered under MSP is less than 50%. This means that a significant portion of the crop is consumed by the farmers themselves or used for other purposes like seed or animal feed.
Therefore, the correct statements are:
1. Commercial crops are not covered under minimum support prices (MSPs).
2. If MSP is legally binding, no crop can be bought by private buyers below the MSP.
Statement 1: Commercial crops are not covered under minimum support prices (MSPs).
This statement is correct. The minimum support price (MSP) is a price set by the government to protect farmers from any sharp fall in crop prices. However, MSPs are generally announced only for major crops such as wheat, rice, maize, and pulses. Commercial crops like cotton, sugarcane, and oilseeds are not covered under the MSP system.
Statement 2: If MSP is legally binding, no crop can be bought by private buyers below the MSP.
This statement is correct. When the government announces an MSP, it becomes a legally binding price. Private buyers are not allowed to purchase crops from farmers below the MSP. However, this does not mean that private buyers are obligated to buy crops at the MSP. They can choose to buy at a higher price, but not below the MSP.
Statement 3: The marketed surplus for all the crops covered under MSP is more than 50%.
This statement is incorrect. The marketed surplus refers to the quantity of a crop that is sold in the market after meeting the farmer's own consumption needs. While it is difficult to provide an exact percentage, it is generally observed that the marketed surplus for crops covered under MSP is less than 50%. This means that a significant portion of the crop is consumed by the farmers themselves or used for other purposes like seed or animal feed.
Therefore, the correct statements are:
1. Commercial crops are not covered under minimum support prices (MSPs).
2. If MSP is legally binding, no crop can be bought by private buyers below the MSP.
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Consider the following statements.1.Commercial crops are not covered under minimum support prices (MSPs).2.If MSP is legally binding, no crop can be bought by private buyers below the MSP.3.The marketed surplus for all the crops covered under MSP is more than 50%.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements.1.Commercial crops are not covered under minimum support prices (MSPs).2.If MSP is legally binding, no crop can be bought by private buyers below the MSP.3.The marketed surplus for all the crops covered under MSP is more than 50%.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1.Commercial crops are not covered under minimum support prices (MSPs).2.If MSP is legally binding, no crop can be bought by private buyers below the MSP.3.The marketed surplus for all the crops covered under MSP is more than 50%.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1.Commercial crops are not covered under minimum support prices (MSPs).2.If MSP is legally binding, no crop can be bought by private buyers below the MSP.3.The marketed surplus for all the crops covered under MSP is more than 50%.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?.
Consider the following statements.1.Commercial crops are not covered under minimum support prices (MSPs).2.If MSP is legally binding, no crop can be bought by private buyers below the MSP.3.The marketed surplus for all the crops covered under MSP is more than 50%.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1.Commercial crops are not covered under minimum support prices (MSPs).2.If MSP is legally binding, no crop can be bought by private buyers below the MSP.3.The marketed surplus for all the crops covered under MSP is more than 50%.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1.Commercial crops are not covered under minimum support prices (MSPs).2.If MSP is legally binding, no crop can be bought by private buyers below the MSP.3.The marketed surplus for all the crops covered under MSP is more than 50%.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements.1.Commercial crops are not covered under minimum support prices (MSPs).2.If MSP is legally binding, no crop can be bought by private buyers below the MSP.3.The marketed surplus for all the crops covered under MSP is more than 50%.Which of the above statements is/are correct?a)1 and 2 onlyb)1 and 3 onlyc)2 onlyd)2 and 3 onlyCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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