Question

Read the following statements carefully:
Statement 1: The Food Corporation of India maintains buffer stocks of wheat and rice as a measure to improve market mechanism.
Statement 2: Minimum Support Price (MSP) is imposed by the government to safeguard the interest of farmers.
In the light of the given statements, choose the correct option from the following:

• A. Statement 1 is true and Statement 2 is false.
• B. Statement 1 is false and Statement 2 is true.
• C. Both Statements 1 and 2 are true.
• D. Both Statements 1 and 2 are false.
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Hint:

Buffer stocks and MSP both aim to protect farmers’ interests and stabilize food grain markets.

Answer 1

The Correct Option is C

Both statements are correct. The Food Corporation of India maintains buffer stocks of essential grains to stabilize prices and ensure food security. MSP is a price set by the government to protect farmers against any sharp fall in market prices.