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Consider the following statements with reference to Minimum Support Price:
1. C2, a measuring variable, is Comprehensive Cost bearing the actual cost of production.
2. At present, the MSP is given to 23 crops based on recommendations of the Commission tor Agricultural Costs and Prices.
3. Ascertaining MSP from the government for the stated crops is a legal right in India.
Q. Which of the statements given above is/are not correct?
  • a)
    2 only
  • b)
    1 and 2 only
  • c)
    3 only
  • d)
    1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements with reference to Minimum Support Pr...
MSP is the Minimum Support Price that is the government sets on agricultural product prices to purchase directly from the farmers. Three variables are prescribed by the Swaminathan Committee to determine the production cost, namely;
  • A2: It is the out-of-pocket expenses which are incurred by farmers like a loan for fertilizers, fuel, machinery, irrigation, etc. and the cost of leasing land
  • A2+FL: Is the estimated value of the unpaid labour for harvesting crops like the contribution of family members, etc. In addition, it is a paid-out cost.
  • C2: It is Comprehensive Cost which is the actual cost of production. It takes into account rent and interest foregone on the land and machinery owned by farmers further in addition to the A2+FL rate. So, statement (1) is correct.
The Commission for Agricultural Costs & Prices (CACP) in the Ministry of Agriculture would recommend MSPs for 23 crops. These included 14 grown during the Kharif/post-monsoon season and six in rabi/winter (wheat, barley, chana, Masur, mustard and safflower), apart from sugarcane, jute and copra. The CACP considered various factors while recommending the MSP for a commodity, including the cost of cultivation. So, statement (2) is correct.
As of now, MSP is not a legal right in India. So, statement (3) is not correct.
Therefore, the answer is (c).
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Consider the following statements with reference to Minimum Support Price:1. C2, a measuring variable, is Comprehensive Cost bearing the actual cost of production.2. At present, the MSP is given to 23 crops based on recommendations of the Commission tor Agricultural Costs and Prices.3. Ascertaining MSP from the government for the stated crops is a legal right in India.Q. Which of the statements given above is/are not correct?a)2 onlyb)1 and 2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements with reference to Minimum Support Price:1. C2, a measuring variable, is Comprehensive Cost bearing the actual cost of production.2. At present, the MSP is given to 23 crops based on recommendations of the Commission tor Agricultural Costs and Prices.3. Ascertaining MSP from the government for the stated crops is a legal right in India.Q. Which of the statements given above is/are not correct?a)2 onlyb)1 and 2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with reference to Minimum Support Price:1. C2, a measuring variable, is Comprehensive Cost bearing the actual cost of production.2. At present, the MSP is given to 23 crops based on recommendations of the Commission tor Agricultural Costs and Prices.3. Ascertaining MSP from the government for the stated crops is a legal right in India.Q. Which of the statements given above is/are not correct?a)2 onlyb)1 and 2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with reference to Minimum Support Price:1. C2, a measuring variable, is Comprehensive Cost bearing the actual cost of production.2. At present, the MSP is given to 23 crops based on recommendations of the Commission tor Agricultural Costs and Prices.3. Ascertaining MSP from the government for the stated crops is a legal right in India.Q. Which of the statements given above is/are not correct?a)2 onlyb)1 and 2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
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