Bissoy.com
Doctors Medicines MCQs Q&A

According to the evaluation report of Niti Ayog related to Minimum Support Price (MSP), which of the following statement (s) is/are correct? (a) MSP is declared before the sowing season. (b) The idea behind MSP is to give guaranteed prices to the farmers and save them from price fluctuations. (c) With globalization resulting in free trade in agricultural commodities, it is not important to protect the farmers from the unwarranted fluctuations in prices.

According to the evaluation report of Niti Ayog related to Minimum Support Price (MSP), which of the following statement (s) is/are correct? (a) MSP is declared before the sowing season. (b) The idea behind MSP is to give guaranteed prices to the farmers and save them from price fluctuations. (c) With globalization resulting in free trade in agricultural commodities, it is not important to protect the farmers from the unwarranted fluctuations in prices. Correct Answer (a), (b) only

The correct answer is (a), (b) only.

Key Points

Minimum Support Price:

  • Based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Department of Agriculture and Co-operation, Government of India, declares Minimum Support Price (MSP) for 22 crops before the sowing season. Hence, Statement (a) is correct.
  • The idea behind MSP is to give guaranteed prices and assured market to the farmers and save them from the price fluctuations. Hence, Statement (b) is correct.
  • It insulates farmers from the unwarranted fluctuation in prices caused by the variation in supply (largely influenced by the monsoon), lack of market integration, information asymmetry, and other elements of market imperfection plaguing the agricultural markets.
  • The guaranteed price and assured market are expected to encourage higher investment and the adoption of modern technologies in agricultural activities.
  • Further, with globalization resulting in freer trade in agricultural commodities, it is very important to protect farmers from the unwarranted fluctuation in prices, provoked by the international level price variations. Hence, Statement (c) is incorrect.
  • Given the relevance of the MSP scheme, the erstwhile Programme Evaluation Organization (PEO), now the Development Monitoring and Evaluation Office (DMEO), on a request from the Ministry of Agriculture, the Government of India has conducted an Evaluation Study on the Efficacy of MSP.
  • The study has been designed to explore the relevance of MSP and to ascertain if the intended benefits have reached the farmers after such a long period of implementation. The constraints faced in the implementation have also been analyzed and probable solutions have been explored and recommended.

Related Questions

Consider the following statements with respect to Minimum Support Price (MSP): 1. MSP is computed on the basis of the recommendations made by the Commission for Agricultural Costs and Prices (CACP). 2. Currently tea is covered under the MSP. 3. MSP for food grains is always kept necessarily higher than the market price of the grains. Which of the statements given above is/are correct?
In September 2020, which of the three bills were passed by the parliament aimed at transforming agriculture in the country and raising farmers' income? (A) Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 (B) Farmers (Empowerment and Protection) Agreement on Price Assurance and farm Services Bill, 2020 (C) Essential Commodities (Amendment) Bill 2020 (D) Farmers Income and MSP (Minimum Support Price) Amendment Bill, 2020
A statement is given below in the question followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Hindustan Unilever and Nestlé plan to selectively increase prices of their products to take into account higher crude oil and petrol costs, the rupee’s depreciation against the dollar and more expensive commodities such as wheat. If crude remains where it is and if the rupee has depreciated, of course, there are headwinds as far as costs are concerned. I. Nestlé India’s logistics providers are looking to renegotiate rates after record-high petrol and diesel prices. Nestlé declined to comment on when and by how much prices would increase.  II. Nestlé commented that HUL had dropped prices in November after the Goods & Services Tax was introduced last year and an increase in prices now would likely not hurt consumers.  III. Petrol prices have crossed Rs 90 a litre in Mumbai on increasing global prices of crude oil, of which India is a net importer, further impacted by the falling rupee. Crude derivatives, which are key inputs for FMCG companies, and petroleum derivatives used in packaging material including bottles and tubes, have also become more expensive.
Commission for Agriculture Costs and Prices (CACP) submits its recommendation for MSPs of agricultural commodities in form of Price Policy Reports. Consider the following statements: 1. CACP is a statutory body formed under Agriculture Price Commission Act, 1962. 2. Currently MSP is devoid of any legal backing except for Sugarcane to some extent. 3. Before submitting a Price Policy Report for any crop, CACP also analyses demand and supply and the implications of MSP on consumers of that product along with the costs of production. Which among the following statements is/are incorrect?
Regarding the new MSP of Paddy declared by the Government in July 2018, which of the following statements are correct? 1. MSP of Paddy (Common Grade) has been increased by Rs. 200/- per quintal and of Grade A variety by Rs. 160/- per quintal. 2. MSP of Paddy (Common Grade) has been increased by Rs. 160/- per quintal and of Grade A variety by Rs. 200/- per quintal. 3. The new MSP of Paddy (Common Grade) and Grade A variety is Rs. 1750/- per quintal. 4. The new MSP of Paddy (Common Grade) is Rs. 1750/- per quintal and of Grade A is Rs. 1770/- per quintal.
Paddy transplantation in Punjab is a very hard labor-intensive back-breaking job. In the transplant season, teams of special people swarm the entire rural landscape employed by the farmers and can be seen laboring away in the fields under the hot sweltering sun. Farmer Jagtar Singh has a full-time help at his sprawling farm who goes by the name of Hari, and who hails from Allahabad, UP. During the paddy transplant season, it is up to Hari to rope in his brothers, sons, and cousins from his native village to complete the task well in time. All his people are skillful and masters of the trade and equally efficient at their jobs. So, this past season, this is how the work went. Hari started the work and after 't' hours was joined in by his brother Jaggi. After another 't' hours, Neelu, their cousin, also jumped into the fray. So, after every 't' hours, 1 person kept on joining the team of already working men, and this process kept on continuing till the completion of the work. The last person worked for 't' hours. In the last season, the very same men had completed the same work working 2 shifts of 12 hours all of them working simultaneously owing to some peculiar weather conditions and time constraints. Jagtar Singh is a fair and just paymaster which is why he faces no labor shortage at this crucial time and which is why the whole 'Hari clan' are more than happy to work for him and are at his beck and call. He pays each of them individually proportional to the work done by them. This time around, Hari received 11 times as much as Surinder, his eldest son, who was the last person to join in. In how much time was the work completed?
Which of the following statement is wrong ? (a) NITI Ayog stands for National Institute for Transforming India. (b) It was founded on 15 January 2015. (c) Prime Minister is Chairman of the NITI Ayog.
The question given below consists of a statement, followed by three arguments numbered I, II and III. You have to decide which of the arguments is/are ‘strong' arguments and which is/are ‘weak' arguments and accordingly choose your answer from the alternatives given below each question. Statement: The United States has launched what China calls the ‘largest trade war in economic history' and in its latest move targeted another $200 billion in Chinese export goods. The US-China spat is one of several trade fights picked by the protectionist President Donald Trump as his ‘America First' agenda disrupts trade relations among traditional allies. The growing share of international trade under threat has raised the prospect the escalating trade war could harm the global economy, shrinking investments and undermining supply chains. Why? Arguments: I. Several companies - including Total and Peugeot of France, and Russia's Lukoil - have said they are preparing to exit Iran ahead of US deadlines, the last of which is November 4. II. Trump argued the original deal from 2012 was lopsided in Seoul's favour but has also clouded the issue by appearing to link trade concessions to progress in his separate track of talks with nuclear-armed North Korea. III. Meanwhile, talks among the three NAFTA (North American Free Trade Agreement) signatories, launched after Trump demanded an overhaul of the ‘terrible deal', have snagged notably owing to the US demands to increase American content installed in duty-free autos. 
The diagram shows the survey on a sample of 197 persons with reference to their preferences for three seasons that is winter, summer, and spring. 120 persons like spring season, 100 like Winter Season, and 90 like summer season. 50 persons like both spring and winter season only, 25 like both summer and winter season only, and 18 like both spring and summer season only. 10 persons like all three seasons. How many persons like only the winter season?
Consider the given statement to be true and decide which of the conclusions logically follow(s) from the statements. Statement: Farmers protested against the government demanding a minimum support price for crops. Conclusions: 1. The government should give farmers the money to stop the protest. 2. The government should give them a minimum support price for their crops.