Question:
The concept of "Minimum Support Price" in India is related to
The concept of "Minimum Support Price" in India is related to
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MSP is crucial in safeguarding farmers incomes by ensuring they get a fair price for their produce, especially when market prices fall below the support level.
Updated On: Apr 24, 2025
- Export subsidies for agricultural products
- Guaranteed price support to farmers for their produce
- Tax exemption for agricultural machinery
- Interest subsidies on agricultural loans
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The Correct Option is B
Solution and Explanation
Step 1: Understanding the Minimum Support Price (MSP)
MSP is a price set by the government to ensure that farmers are paid a fair price for their crops, especially in times of price volatility in the market.
The government guarantees a minimum price for certain crops, ensuring farmers are not at a loss due to market fluctuations.
Step 2: Evaluating the Options
Option (1): Export subsidies are not related to MSP.
Option (2): This is the correct answer. MSP provides guaranteed price support to farmers for their produce, ensuring they are paid at least a minimum price for their crops.
Option (3): MSP is not related to tax exemption for agricultural machinery.
Option (4): MSP is not related to interest subsidies on agricultural loans.
Step 3: Conclusion
The correct answer is (2), as MSP is directly related to guaranteed price support for farmers’ produce.
Answer: (2) Guaranteed price support to farmers for their produce
MSP is a price set by the government to ensure that farmers are paid a fair price for their crops, especially in times of price volatility in the market.
The government guarantees a minimum price for certain crops, ensuring farmers are not at a loss due to market fluctuations.
Step 2: Evaluating the Options
Option (1): Export subsidies are not related to MSP.
Option (2): This is the correct answer. MSP provides guaranteed price support to farmers for their produce, ensuring they are paid at least a minimum price for their crops.
Option (3): MSP is not related to tax exemption for agricultural machinery.
Option (4): MSP is not related to interest subsidies on agricultural loans.
Step 3: Conclusion
The correct answer is (2), as MSP is directly related to guaranteed price support for farmers’ produce.
Answer: (2) Guaranteed price support to farmers for their produce
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