Q. Consider the following statements:
1.Commission for Agricultural Costs and Prices (CACP) is responsible for recommending the Minimum Support Price (MSP) in India.
2.In an ideal situation, the Minimum Support Price (MSP) should always be higher than market prices.
Which of the statement(s) given above is/are correct?
Answer: A
Notes:
Explanations –
Statement 1 is correct. The CACP is responsible for recommending the MSP for various crops in India. It considers factors such as cost of production, demand and supply, and market price trends to make its recommendations.
Statement 2 is incorrect. Ideally, market prices should be higher than the MSP. The MSP serves as a safety net to ensure that farmers receive a minimum price for their produce if market prices fall below this level.
Source: The Hindu
