Question

Prime beneficiary of the Minimum Support Price (MSP) fixed by the government is ................ (Choose the correct option to fill in the blank)

• A. Labourer
• B. Consumer
• C. Trader (Buyer)
• D. Farmer

Hint:

MSP aims to protect farmers from price fluctuations and crop failures. It ensures agricultural sustainability and income support for cultivators.

Answer 1

The Correct Option is D

Minimum Support Price (MSP) is a policy instrument used by the government to protect farmers against sharp declines in the prices of agricultural produce. It is the price at which the government guarantees to purchase crops from the farmers, irrespective of the market price. The core objective of MSP is to provide a safety net to the farmers, ensuring that they receive a minimum assured return for their produce. This reduces the risk of distress sales and helps stabilize farm income. Let us examine the options:
Labourer (A): Labourers benefit indirectly when farming thrives, but they are not the primary target of MSP.
Consumer (B): Consumers are not direct beneficiaries. In fact, higher MSPs may raise prices for them.
Trader (Buyer) (C): Traders often have to pay more due to MSP, so they are not beneficiaries.
Farmer (D): Farmers directly benefit through assured prices and income security.
Therefore, the correct answer is (D) Farmer.