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Q82 (CAPF/2021) Economy › Agriculture & Rural Economy › Agricultural price policy Answer Verified

The price declared by the Government every year before the sowing season to provide incentives to the farmers is called

Result
Your answer: —  Â·  Correct: C
Explanation

The price declared by the Government of India every year before the sowing season to provide incentives to farmers is the Minimum Support Price (MSP) [2]. MSP serves as a price floor to protect agricultural producers against sharp declines in market prices and ensures they receive a remunerative price for their produce. It is announced twice a year for Kharif and Rabi crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) [2]. While MSP provides an incentive for production and food security, it is distinct from the 'Issue Price,' which is the rate at which food grains are distributed to states for the public distribution system [3]. Buffer stocks are the food grain reserves maintained by the government, and MSP acts as the procurement rate to build these stocks [4].

Sources

  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
  2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 328
  3. [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > 9.5.1 Food Corporation of India (FCI) > p. 293
  4. [4] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
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SIMILAR QUESTIONS

IAS · 2001 · Q33 Relevance score: -2.07

The prices at which the Government purchases food grains for maintaining the public distribution system and for building up buffer-stocks is known as

CAPF · 2014 · Q29 Relevance score: -5.27

Which of the statements given below is/ are correct ? 1. For the marketing year 2014-2015, the minimum support price (MSP) for wheat in India has been fixed at Rs. 1,400 / quintal 2. MSP is the rate at which the government sells the grains through the fair price shops Select the correct answer using the code given below : .

IAS · 2009 · Q141 Relevance score: -6.01

Consider the following statements : 1. The Commission for Agricultural Costs and Prices recommends the Minimum Support Prices for 32 crops. 2. The Union Ministry of Consumer Affairs, Food and Public Distribution has launched the National Food Security Mission. Which of the statements given above is/are correct ?

IAS · 2019 · Q79 Relevance score: -6.28

The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus

CDS-II · 2018 · Q71 Relevance score: -6.86

With regard to the cabinet decision in July 2018, the percentage increase in Minimum Support Price (MSP) is maximum in which one of the following crops?