Multiple choice general knowledge

What is the main objective of providing a support price to commodities?

  1. check fall in price beyond a limit

  2. protect interest of the consumers

  3. make procurement from the wholesalers easy

  4. Dependence upon the owner
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Support price (or minimum support price) is a government mechanism to prevent agricultural prices from falling below a specified level, protecting farmers from market volatility and distress sales. This ensures farmers get a fair return and encourages agricultural production. Options B and C are incorrect as they don't reflect the farmer-protection objective.

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