Minimum Support Price (MSP)
Minimum Support Prices (MSP) for agricultural products are aimed at:
- Increasing government revenue
- Protecting the income of farmers — Correct Answer
- Reducing agricultural production
- Promoting imports of food grains
Explanation:
Correct Answer Explanation
MSP and other policy instruments are aimed at protecting the income of farmers and providing foodgrains at a subsidised rate to the poor.
Key Points:
- MSP is one of the four policy instruments for agricultural marketing improvement.
- Food Corporation of India (FCI) maintains buffer stocks of wheat and rice.
- PDS (Public Distribution System) distributes food grains and sugar at subsidised rates.
- Despite government intervention, private trade still predominates agricultural markets.
Why Other Options Are Wrong
- A: MSP is to protect farmers, not increase government revenue.
- C: MSP encourages production by guaranteeing minimum prices.
- D: MSP supports domestic production, not imports.
📚 About this Topic — CH-5: RURAL DEVELOPMENT
This multiple choice question is from CH-5: RURAL DEVELOPMENT, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-5: RURAL DEVELOPMENT to strengthen your preparation.
