Q. Consider the following statements:
1.The Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against sharp falls in farm prices.
2.Food Corporation of India (FCI) recommends the Minimum Support Price (MSP) for agricultural products in India.
3.In India, the Minimum Support Price (MSP) lacks legal status.
How many of the statements given above are correct?
Answer: B
Notes:
Explanation –
Statements 1 and 3 are correct. MSP is a market intervention by the Indian government to protect farmers from significant price drops in agricultural products. Currently, MSP does not have statutory backing, meaning it is not legally enforceable.
Statement 2 is incorrect. The MSP is recommended by the Commission for Agricultural Costs and Prices (CACP).
Source: The Hindu
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