Civil Services Examination · Question 69
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?
Show answer & explanation
Answer: (D) Neither 1 nor 2
Explanation
Procurement of pulses and oilseeds is capped (e.g., 25% of production under PM-AASHA), and market prices can and often do rise above MSP.