Q. Consider the following statements:
1.Minimum Support Price (MSP) is the minimum price at which farmers are legally allowed to sell their crops.
2.The MSP is announced annually for 23 crops covering both the kharif and rabi seasons.
3.MSP system has played a crucial role in safeguarding food security in India.
4.Only 6% of farmers, primarily those cultivating paddy and wheat in States such as Punjab, benefit from MSP.
Which of the statements given above are correct?
Explanation –
Statement 1 is incorrect. Minimum Support Price (MSP) is not the minimum price at which farmers are legally allowed to sell their crops. It is a benchmark price set by the government to ensure a minimum level of income for farmers. If market prices fall below MSP, the government procures the crop from farmers at MSP to support them. MSP is not a legally mandated minimum price.
Statements 2, 3 and 4 are correct. The MSP is announced annually for 23 crops covering both the kharif and rabi seasons, well in advance of sowing, with 21 of them being food crops. These crops include paddy, wheat, maize, pulses, oilseeds, and some other cash crops. The MSP system has played a crucial role in safeguarding food security in India. By providing a guaranteed price for farmers, it incentivizes the production of key staple crops such as rice and wheat, which helps ensure sufficient domestic food supply. Only 6% of farmers, primarily those cultivating paddy and wheat in States such as Punjab, benefit from MSP.
Source: The Hindu
