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What is the primary purpose of the Minimum Support Price (MSP) system in India?
  • a)
    To encourage farmers to grow more cash crops
  • b)
    To protect agricultural producers from significant drops in prices
  • c)
    To subsidize the import of agricultural products
  • d)
    To eliminate government intervention in agricultural markets
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What is the primary purpose of the Minimum Support Price (MSP) system ...
The primary purpose of the Minimum Support Price (MSP) system in India is to protect agricultural producers against significant drops in prices, particularly during years of high production. By ensuring that farmers receive a guaranteed minimum price for their crops, the MSP helps prevent distress sales and supports the procurement of food grains for distribution. This system serves as a crucial market intervention tool to stabilize farmers' incomes.
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What is the primary purpose of the Minimum Support Price (MSP) system in India?a) To encourage farmers to grow more cash cropsb) To protect agricultural producers from significant drops in pricesc) To subsidize the import of agricultural productsd) To eliminate government intervention in agricultural marketsCorrect answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about What is the primary purpose of the Minimum Support Price (MSP) system in India?a) To encourage farmers to grow more cash cropsb) To protect agricultural producers from significant drops in pricesc) To subsidize the import of agricultural productsd) To eliminate government intervention in agricultural marketsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary purpose of the Minimum Support Price (MSP) system in India?a) To encourage farmers to grow more cash cropsb) To protect agricultural producers from significant drops in pricesc) To subsidize the import of agricultural productsd) To eliminate government intervention in agricultural marketsCorrect answer is option 'B'. Can you explain this answer?.
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