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Q62 (CAPF/2020) Economy › Agriculture & Rural Economy › Agricultural price policy Answer Verified

Fixation of price levels for wheat and rice by the Commission for Agriculture Costs and Prices (CACP) is an example of ?

Result
Your answer: —  Â·  Correct: D

Explanation

The Commission for Agricultural Costs and Prices (CACP) recommends the Minimum Support Price (MSP) for major agricultural commodities, including wheat and rice. The MSP serves as a safety net or floor price to protect farmers from sharp falls in market prices, especially during bumper harvests.

  • If market prices drop below the MSP, government agencies step in to procure the crops at the guaranteed price.
  • It is explicitly termed a Support Price because it provides a minimum income guarantee, ensuring farmers are not compelled to sell their produce at a loss.

While an Administered Price is any price fixed by the government, the specific mechanism used for wheat and rice to protect farmers from distress sales is a Support Price.

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SIMILAR QUESTIONS

IAS · 1995 · Q16 Relevance score: -0.01

Which of the following are the objectives of the Commission for Agricultural Costs and Prices (CACP) ? I. To stabilise agricultural prices. II. To ensure meaningful real income levels to the farmers. III. To protect the interest of the consumers by providing essential agricultural commodities at reasonable rates through public distribution system. IV. To ensure maximum price for the farmer. Select the correct answer from the codes given below :

IAS · 2009 · Q141 Relevance score: -2.40

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 ?

CAPF · 2014 · Q29 Relevance score: -3.15

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 · 2015 · Q13 Relevance score: -3.91

The Fair and Remunerative Price (FRP) of sugarcane is approved by the

IAS · 2004 · Q77 Relevance score: -4.12

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?