Q. With reference to procurement of wheat in India, consider the following statements:
1.The Food Corporation of India (FCI) along with State Government Agencies (SGAs) procures wheat.
2.The Government declares a Minimum Support Price (MSP) before the sowing of the crop every year on the recommendation of the Commission for Agricultural Cost and Prices (CACP).
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

Answer: C
Notes:

Both statements are correct.

  • Statement 1 is correct:The Food Corporation of India(FCI) along with State Government Agencies (SGAs) procures wheat. The FCI’s wheat procurement system can be decentralized (DCP) or centralized (non-DCP).
  • Statement 2 is correct: The government buys wheat at the MSP which it declares before the sowing of the crop every year on the recommendation of the Commission for Agricultural Cost and Prices (CACP).

Source: Article

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