LIVE Course for free

Rated by 1 million+ students
Get app now
JEE MAIN 2023
JEE MAIN 2023 TEST SERIES
NEET 2023 TEST SERIES
NEET 2023
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
20 views
in General by (60.0k points)
closed by

Minimum Support Price (MSP) of the agricultural crops in India is fixed by the government on the recommendations of the:


1. Food Corporation of India (FCI)
2. Reserve Bank of India
3. Commission for Agricultural Costs and Prices (CACP)
4. None of the above. 

1 Answer

0 votes
by (110k points)
selected by
 
Best answer
Correct Answer - Option 3 : Commission for Agricultural Costs and Prices (CACP)

The correct answer is the Commission for Agricultural Costs and Prices (CACP).

  • MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP) since 2009.
    • During the 2018-19 Union Budget, the government announced that MSP would be kept at 1.5 times the cost of production (as per recommendations from the M S Swaminathan chaired National Commission for Farmers).

  • Minimum Support Price is a safety net given to the farmers to ensure guaranteed prices and assured markets.
    • The MSP-based procurement system is aimed to save the crops from price fluctuations due to various unwarranted factors such as the monsoon, lack of market integration, information asymmetry, and other elements of market imperfection plaguing Indian agriculture.
  • The prices of agricultural commodities often vary due to various factors. If a crop has seen a good harvest season during a particular year, it may see a sharp fall in its prices.
    • This will lead to farmers withdrawing from sowing the crop in the next year which will affect the supply. 
    • MSP is fixed by the government which is supposed to encourage higher investments and production of crops.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...