UPSC Exam > UPSC Questions > Consider the following statements.1. Minimum...
Start Learning for Free
Consider the following statements.
1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
2. But it does not guarantee the price.
3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.
Which of these statements is/are correct?
- a)2 Only
- b)3 Only
- c)1 and 3 Only
- d)1 Only
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements.1. Minimum Support Price (MSP) is a...
- Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices and a guaranteed price to save farmers from distress sale.
- The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP, 1985).
- The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.
Community Answer
Consider the following statements.1. Minimum Support Price (MSP) is a...
Explanation:
The correct answer is option D, i.e., statement 1 only is correct.
Explanation of each statement:
1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
- This statement is correct. The Minimum Support Price (MSP) is the price at which the government purchases crops from the farmers, ensuring them a minimum guaranteed price for their produce. The objective of MSP is to provide a safety net to the farmers and protect them from any sharp fall in farm prices. It acts as a form of insurance for agricultural producers.
2. But it does not guarantee the price.
- This statement is incorrect. The MSP does guarantee a minimum price to the farmers for their produce. The government purchases the crops at the MSP if the market price falls below it. This ensures that farmers do not suffer losses due to a sharp fall in prices. However, it is important to note that MSP is not a fixed price for all agricultural commodities and varies for different crops.
3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.
- This statement is incorrect. The MSPs are not announced based on the recommendations of the Department of Agricultural Research And Education. The MSPs are determined by the Cabinet Committee on Economic Affairs (CCEA) based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). The CACP takes into account various factors such as cost of production, demand-supply situation, market prices, and international prices while recommending the MSPs. The MSPs are usually announced before the sowing season to provide farmers with an assurance of the minimum price they would receive for their crops.
Conclusion:
In conclusion, statement 1 is correct as MSP is a form of market intervention by the government to insure agricultural producers against any sharp fall in farm prices. Statement 2 is incorrect as MSP does guarantee a minimum price to the farmers. Statement 3 is incorrect as the MSPs are not announced based on the recommendations of the Department of Agricultural Research And Education.
The correct answer is option D, i.e., statement 1 only is correct.
Explanation of each statement:
1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
- This statement is correct. The Minimum Support Price (MSP) is the price at which the government purchases crops from the farmers, ensuring them a minimum guaranteed price for their produce. The objective of MSP is to provide a safety net to the farmers and protect them from any sharp fall in farm prices. It acts as a form of insurance for agricultural producers.
2. But it does not guarantee the price.
- This statement is incorrect. The MSP does guarantee a minimum price to the farmers for their produce. The government purchases the crops at the MSP if the market price falls below it. This ensures that farmers do not suffer losses due to a sharp fall in prices. However, it is important to note that MSP is not a fixed price for all agricultural commodities and varies for different crops.
3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.
- This statement is incorrect. The MSPs are not announced based on the recommendations of the Department of Agricultural Research And Education. The MSPs are determined by the Cabinet Committee on Economic Affairs (CCEA) based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). The CACP takes into account various factors such as cost of production, demand-supply situation, market prices, and international prices while recommending the MSPs. The MSPs are usually announced before the sowing season to provide farmers with an assurance of the minimum price they would receive for their crops.
Conclusion:
In conclusion, statement 1 is correct as MSP is a form of market intervention by the government to insure agricultural producers against any sharp fall in farm prices. Statement 2 is incorrect as MSP does guarantee a minimum price to the farmers. Statement 3 is incorrect as the MSPs are not announced based on the recommendations of the Department of Agricultural Research And Education.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Consider the following statements.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. Can you explain this answer?
Question Description
Consider the following statements.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. 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.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. 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.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. Can you explain this answer?.
Consider the following statements.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. 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.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. 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.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements.1. Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.2. But it does not guarantee the price.3. The MSPs are announced at the beginning of the sowing season for certain crops based on the recommendations of the Department of Agricultural Research And Education.Which of these statements is/are correct?a) 2 Onlyb) 3 Onlyc) 1 and 3 Onlyd) 1 OnlyCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup