Civil Services Prep

Prelims 2020 · Agriculture · Question 79

Consider the following statements: 1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer

Neither 1 nor 2

Statement 1: Incorrect. MSP is announced for many crops, but unlimited procurement is not done for all cereals, pulses and oilseeds in every State/UT. Large-scale assured procurement is mainly for paddy and wheat, while pulses/oilseeds are procured only under limited schemes like PSS/PSF and not universally.

Statement 2: Incorrect. MSP is a floor/support price, not a ceiling. In cereals and pulses, market prices can rise above MSP depending on demand-supply conditions; MSP does not prevent prices from rising.

Therefore, neither 1 nor 2 is correct.

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