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Consider the following statements-
1. To ensure that the producer gets a minimum remunerative price.
2. To maintain reasonable terms of trade between agricultural sectors.
Which of the above are the objectives of the Agriculture Price Policy?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements-1. To ensure that the producer gets...
The correct answer is Both 1 and 2.
Key-Points
The main objectives of an agriculture price policy are:
  • ​To ensure that the producer gets a minimum remunerative price. Hence, statement 1 is correct.
  • To maintain reasonable terms of trade between agricultural sectors; Hence, statement 2 is correct.
  • To maintain the general price level and protect the non producing consumer from violent fluctuations in the price of food grains.
  • During the pre-green revolution period, due to the shortage of domestic production, the terms of trade were in favour of the agriculture sector.
  • However, with the surplus of food grains in the years following the green revolution, the policy shifted towards protecting the farmers from the prospect of non-remunerative prices.
  • The Commission for Agricultural Costs and Prices (CACP) formerly known as the Agricultural Prices Commission analyzes the input costs and recommends the minimum support prices for 24 major crops.
  • MSP announced by the government is the price at which the government is ready to purchase the crop from farmers directly if the crop prices become lower than MSP.
  • As a result, the market price of the crop never comes down from the level of MSP. The minimum price security gives incentives to farmers to increase their production.
  • However, historically, the actual support prices are fixed far above the recommended prices due to intense lobbying by the interested parties.
  • Procurement price and minimum support price are different from each other.
  • Procurement price (PP) is the price at which the government purchases the crop after harvesting, while Minimum Support price (MSP) is the minimum price at which the government declares it will buy the crop.
  • Since 1968-69, the MSP is usually the procurement price.
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Consider the following statements-1. To ensure that the producer gets a minimum remunerative price.2. To maintain reasonable terms of trade between agricultural sectors.Which of the above are the objectives of the Agriculture Price Policy?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
Question Description
Consider the following statements-1. To ensure that the producer gets a minimum remunerative price.2. To maintain reasonable terms of trade between agricultural sectors.Which of the above are the objectives of the Agriculture Price Policy?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPPSC (UP) 2025 is part of UPPSC (UP) preparation. The Question and answers have been prepared according to the UPPSC (UP) exam syllabus. Information about Consider the following statements-1. To ensure that the producer gets a minimum remunerative price.2. To maintain reasonable terms of trade between agricultural sectors.Which of the above are the objectives of the Agriculture Price Policy?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPPSC (UP) 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements-1. To ensure that the producer gets a minimum remunerative price.2. To maintain reasonable terms of trade between agricultural sectors.Which of the above are the objectives of the Agriculture Price Policy?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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