Multiple choice

Which of the following is/are the main objectives(s) of the government in announcing a minimum support price?

  1. To prevent fall in prices in the event of surplus production.

  2. To protect the interest of farmers by ensuring them a minimum price for their crops in the situation of a price fall in the market.

  3. To help FCI buy food grains at reasonable price for distribution through public distribution systems.

  4. Only (1) and (2)

  5. All of 1, 2, 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Minimum Support Price (MSP) is designed to protect farmers from price crashes during surplus production and to ensure they receive a fair price. While it facilitates procurement for the PDS, the primary objective is the protection of farmers.

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