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With reference to the Minimum Support Price (MSP) Regime, consider the following statements:
1. These are announced by Commission for Agricultural Costs and Prices (CACP).
2. It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
With reference to the Minimum Support Price (MSP) Regime, consider the...
The Union Ministry of Agriculture and Farmers Welfare recently notified a committee to promote zero-budget based farming and to make the MSP more effective and transparent.
- MSP is a form of market intervention (a policy decision not enforceable by law) by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.
- These are announced by the Cabinet Committee on Economic Affairs (Chaired by the Prime Minister of India).
- The recommendations of the Commission for Agricultural Costs and Prices (CACP) at the beginning of the sowing season for certain crops forms the basis of these announcements.
Hence only statement 2 is correct.
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With reference to the Minimum Support Price (MSP) Regime, consider the...
Answer:
The correct answer is option 'B', i.e., statement 2 only.
Explanation:
Statement 1: These are announced by Commission for Agricultural Costs and Prices (CACP).
This statement is incorrect. The Minimum Support Price (MSP) regime is announced by the Government of India and not by the Commission for Agricultural Costs and Prices (CACP). The CACP is a statutory body that advises the government on the pricing policy of major agricultural commodities. It recommends the MSP for various crops, but the final decision is taken by the government.
Statement 2: It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.
This statement is correct. The Minimum Support Price (MSP) regime is a form of market intervention by the Government of India to protect the interests of agricultural producers. It is aimed at ensuring remunerative prices to farmers for their produce, especially during bumper production years when market prices may fall sharply due to excess supply. The MSP acts as a safety net for farmers and provides them with a minimum guaranteed price for their crops.
Under the MSP regime, the government announces minimum prices for various crops at the beginning of each agricultural season. These prices are usually higher than the market prices to incentivize farmers to produce more and to protect them from price fluctuations. The government also procures crops from farmers at the MSP to support their income and stabilize prices in the market.
The MSP regime primarily covers 23 crops, including cereals, pulses, oilseeds, and cotton. The MSP is announced based on the recommendations of the CACP, which takes into account factors such as the cost of production, market prices, demand and supply situation, and the overall welfare of farmers.
In conclusion, the Minimum Support Price (MSP) regime is a market intervention mechanism adopted by the Government of India to protect agricultural producers from sharp falls in farm prices during bumper production years. While the Commission for Agricultural Costs and Prices (CACP) recommends the MSP, the final decision is taken by the government.
The correct answer is option 'B', i.e., statement 2 only.
Explanation:
Statement 1: These are announced by Commission for Agricultural Costs and Prices (CACP).
This statement is incorrect. The Minimum Support Price (MSP) regime is announced by the Government of India and not by the Commission for Agricultural Costs and Prices (CACP). The CACP is a statutory body that advises the government on the pricing policy of major agricultural commodities. It recommends the MSP for various crops, but the final decision is taken by the government.
Statement 2: It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.
This statement is correct. The Minimum Support Price (MSP) regime is a form of market intervention by the Government of India to protect the interests of agricultural producers. It is aimed at ensuring remunerative prices to farmers for their produce, especially during bumper production years when market prices may fall sharply due to excess supply. The MSP acts as a safety net for farmers and provides them with a minimum guaranteed price for their crops.
Under the MSP regime, the government announces minimum prices for various crops at the beginning of each agricultural season. These prices are usually higher than the market prices to incentivize farmers to produce more and to protect them from price fluctuations. The government also procures crops from farmers at the MSP to support their income and stabilize prices in the market.
The MSP regime primarily covers 23 crops, including cereals, pulses, oilseeds, and cotton. The MSP is announced based on the recommendations of the CACP, which takes into account factors such as the cost of production, market prices, demand and supply situation, and the overall welfare of farmers.
In conclusion, the Minimum Support Price (MSP) regime is a market intervention mechanism adopted by the Government of India to protect agricultural producers from sharp falls in farm prices during bumper production years. While the Commission for Agricultural Costs and Prices (CACP) recommends the MSP, the final decision is taken by the government.
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With reference to the Minimum Support Price (MSP) Regime, consider the following statements:1. These are announced byCommission for Agricultural Costs and Prices (CACP).2. It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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With reference to the Minimum Support Price (MSP) Regime, consider the following statements:1. These are announced byCommission for Agricultural Costs and Prices (CACP).2. It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. 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 With reference to the Minimum Support Price (MSP) Regime, consider the following statements:1. These are announced byCommission for Agricultural Costs and Prices (CACP).2. It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Minimum Support Price (MSP) Regime, consider the following statements:1. These are announced byCommission for Agricultural Costs and Prices (CACP).2. It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?.
With reference to the Minimum Support Price (MSP) Regime, consider the following statements:1. These are announced byCommission for Agricultural Costs and Prices (CACP).2. It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. 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 With reference to the Minimum Support Price (MSP) Regime, consider the following statements:1. These are announced byCommission for Agricultural Costs and Prices (CACP).2. It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Minimum Support Price (MSP) Regime, consider the following statements:1. These are announced byCommission for Agricultural Costs and Prices (CACP).2. It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?.
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