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Q93 (IAS/2018) Economy › Agriculture & Rural Economy › Agricultural price policy Official Key

Consider the following : 1. Areca nut 2. Barley 3. Coffee 4. Finger millet 5. Groundnut 6. Sesamum 7. Turmeric The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above ?

Result
Your answer:  ·  Correct: B
Explanation

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved increases in Minimum Support Prices (MSPs) for kharif crops for the 2018-19 season on July 4, 2018.[2] The Cabinet also approved enhanced MSPs for Rabi crops of 2018-19.[3]

Among the crops listed, barley is a rabi (winter) crop, while finger millet (ragi), groundnut, and sesamum are kharif (summer-sown) crops for which MSPs were announced in 2018. Specifically, the MSP of ragi (finger millet) was increased by Rs. 997 per quintal.[4]

On the other hand, areca nut, coffee, and turmeric are plantation/commercial crops that typically do not fall under the standard MSP regime announced by the Cabinet Committee on Economic Affairs for seasonal crops. Therefore, option B (2, 4, 5, and 6 only) correctly identifies barley, finger millet, groundnut, and sesamum as the crops from the given list for which MSPs were announced.

Sources
  1. [1] https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Grain%20and%20Feed%20Update_New%20Delhi_India_7-17-2018.pdf
  2. [2] https://www.pib.gov.in/PressReleasePage.aspx?PRID=1537546
  3. [3] https://eands.da.gov.in/PDF/November2018.pdf
  4. [4] https://www.pib.gov.in/PressReleasePage.aspx?PRID=1537546
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Q. Consider the following : 1. Areca nut 2. Barley 3. Coffee 4. Finger millet 5. Groundnut 6. Sesamum 7. Turmeric The Cabinet Committee on E…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 2.9/10
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Statement 1
Did the Cabinet Committee on Economic Affairs announce the Minimum Support Price for areca nut in 2018?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > 2019 > p. 360
Strength: 5/5
“9.74 Indian Economy 3. Irrigation over a period of time can contribute to the salinisation of some agricultural lands. Which of the statements given above is/are correct? (b) 3 only (a) 1 and 2 only• (d) 1, 2 and 3 (c) 1 and 3 only• 18. Consider the following: The same set • 1. Areca nut• 2. Barley• 3. Coffee• 4. Finger millet• 5. Groundnut• 6. Sesamum• 7. Turmeric The Cabinet Committee on Economic Affairs has announced the minimum support price for which of the above? (a) 1, 2, 3 and 7 only (b) 2, 4, 5 and 6 only (c) 1, 3, 4, 5 and 6 only (d) 1, 2, 3, 4, 5, 6 and 7 19.”
Why relevant

This snippet lists 'Areca nut' among crops in a question asking which of the listed crops the Cabinet Committee on Economic Affairs has announced the MSP for (implying CCEA announcements for crops including areca nut are discussed in these sources).

How to extend

A student could use this to suspect that areca nut was one of the crops for which MSP announcements by CCEA exist and then check year-wise CCEA/MSP notifications (e.g., 2018 CCEA press releases or government MSP lists) to confirm the date.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
Strength: 5/5
“Agriculture Crop Year: 1st July - 30th June Marketing Season of Kharif crops starts from 1st October Marketing Season of Rabi crops starts from 1st April Before the sowing, during each Rabi and Kharif crop season, Government of India, Ministry of Agriculture and Farmers' Welfare announces the Minimum Support Prices (MSP) for procurement based on the recommendation of the Commission for Agricultural Costs and Prices (CACP) under Ministry of Agriculture and Farmers' Welfare and upon approval of the Cabinet Committee on Economic Affairs (CCEA). MSP does not have any legal backing till now and farmers can't demand it as a legal right.”
Why relevant

States the rule that MSPs are announced by the Government based on CACP recommendations and require approval of the Cabinet Committee on Economic Affairs (CCEA).

How to extend

Use this rule to interpret any official MSP announcement for areca nut as necessarily having CCEA approval and to target CCEA approval records for 2018 when verifying the claim.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 6: Economic Planning in India > I. Contribution in major Agricultural Sector Reforms: > p. 146
Strength: 3/5
“1. Implementation of Minimum Support Price (MSP) for notified crops- After the advice by NITI Aayog in this regard, M/o Agriculture and Farmers' Welfare launched Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) in 2018 including three mechanisms: reux 19000 reic conairuna • Price Support Scheme (PSS) or Market Assurance Scheme • y sil is Price Deficiency Payment Scheme > Anodice • Pilot on Private Procurement Stockists Scheme प्रधानमंत्री उल्लेखन आये ग्रेसण अभियान”
Why relevant

Describes that in 2018 the government launched PM-AASHA (an MSP-related umbrella) with mechanisms for implementing MSPs, indicating notable MSP policy activity in 2018.

How to extend

Combine this with a targeted search of MSP changes around Sept 2018 (CCEA/Ministry notifications) to see if areca nut MSP was announced as part of 2018 policy actions.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.4 PM – AASHA > p. 308
Strength: 3/5
“Giving a major boost to the pro-farmer initiatives of the Government and in keeping with its commitment and dedication for the Annadata, the Union Cabinet approved a new Umbrella Scheme "Pradhan Mantri Annadata Aay Sanrakshan Abhiyan' (PM-AASHA) in September 2018. The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2019. The Umbrella Scheme includes the mechanism of ensuring remunerative prices to the farmers and is comprised of three sub schemes: • Price Support Scheme (PSS): In Price Support Scheme (PSS), physical procurement of pulses, oilseeds and Copra will be done by Central Nodal Agencies with proactive role of State governments.”
Why relevant

Notes the Union Cabinet approved PM-AASHA in September 2018 to ensure remunerative prices and includes procurement mechanisms—showing Cabinet-level action related to MSPs in 2018.

How to extend

Use the timing of cabinet approval (Sept 2018) to narrow searches for MSP announcements by CCEA in 2018, checking whether areca nut appears in contemporaneous MSP lists.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 329
Strength: 2/5
“• While recommending MSP, CACP considers determinants such as demand and supply, cost of production, price trends in market, inter-crop price parity, a minimum of 50 per cent margin over cost of production, etc. • Thus, MSP announced is 1. 5 times the cost of production of the crop. • At present, government announces MSP for 22 mandated crops and FRP for sugarcane. • In addition to it, MSP for Toria and De-Husked Coconut is fixed on the basis of MSPs of ö rapeseed/mustard and copra, respectively.”
Why relevant

Explains determinants and scope of MSPs and notes government announces MSPs for multiple crops (22 mandated crops and additional items), implying MSPs can cover a variety of crops beyond staples.

How to extend

Combine this general scope with the specific crop list (snippet 1) to justify checking official MSP lists (which enumerate crops and years) for areca nut in 2018.

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Statement analysis

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SIMILAR QUESTIONS

IAS · 2014 · Q69 Relevance score: -1.82

Consider the following pairs: 1. Kinnaur: Areca nut 2. Mewat: Mango 3. Coromandel: Soya bean Which of the above pairs is/are correctly matched?

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Consider the following crops of India? 1. Groundnut 2. Sesamum 3. Pearl millet Which of the statements given above is/are predominantly rainfed crop/crops?

IAS · 2013 · Q89 Relevance score: -4.37

Consider the following crops : 1. Cotton 2. Groundnut 3. Rice 4. Wheat Which of these are Kharif crops?

NDA-I · 2008 · Q76 Relevance score: -6.19

Consider the following plants : 1. Jasmine 2. Sugarcane 3. Turmeric Which of the above is/are propagated by vegetative method?

IAS · 2004 · Q77 Relevance score: -7.37

Consider the following statements: 1. Regarding the procurement of food grains, Government of India follows a procurement target rather than an open-ended procurement policy. 2. Government of India announces minimum support prices only for cereals. 3. For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform Central issue prices to the States/ Union Territories. Which of the statements given above is/ are correct?