UPSC Previous Year Question | Prelims GS | 2020

Consider the following statements: 1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer

Correct Answer

Neither 1 nor 2

Explanation

Procurement of pulses and oilseeds is capped (e.g., 25% of production under PM-AASHA), so it is not unlimited. Market prices can rise above MSP, since MSP is a floor rather than a ceiling.

Topics: agricultural pricing & food management, agriculture & rural development, economy, minimum support price (msp) & procurement