Question

Consider the following statement/statements about Minimum Support Price (MSP):

A. Government fixes Minimum Support Prices (MSPs) for all the agricultural crops based on the recommendations of the Commission for Agricultural Costs & Prices (CACP).

B. While recommending MSP, CACP considers ‘domestic and international prices’ as one of the important factors.

C. MSP for Toria and de-husked coconut is fixed based on MSPs of rapeseed & mustard and copra, respectively.

Which of the above statement/statements is/are correct?

1. A and B only
2. A and C only
3. B and C only
4. A, B and C

Answer 1

Correct Answer: B and C only

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Explanation:

1. Statement A:

   • Government fixes Minimum Support Prices (MSPs) for all the agricultural crops based on the recommendations of the Commission for Agricultural Costs & Prices (CACP).
   • Incorrect:
     • The government does not fix MSPs for all agricultural crops. MSPs are announced for 23 crops as of now, based on CACP recommendations, but not for all agricultural crops.

2. Statement B:

   • While recommending MSP, CACP considers ‘domestic and international prices’ as one of the important factors.
   • Correct:
     • The CACP takes into account various factors, including domestic and international prices, cost of production, and demand-supply conditions.

3. Statement C:

   • MSP for Toria and de-husked coconut is fixed based on MSPs of rapeseed & mustard and copra, respectively.
   • Correct:
     • The MSP for Toria is determined based on the MSP of rapeseed and mustard, and for de-husked coconut, it is based on the MSP of copra.

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Conclusion:

• Statements B and C are correct.
• Statement A is incorrect because MSP is not fixed for all crops.

Thus, the correct answer is B and C only.