| Consider the following statements: |
| 1. The Minimum Support Price (MSP) policy in India covers only wheat, paddy and coarse cereals. |
| 2. The Minimum Support Price (MSP) for Grade-A Paddy is always higher than the common paddy. Which of the statements given above is/are correct? |
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1.nor 2
Correct Answer: B
Solution :
[b] The latest price report on kharif crops has recommended the MSP of common grade paddy at Rs. 1,310 a quintal and for Grade 'A' paddy, it has proposed Rs. 1,340 a quintal. The MSP is announced by the Government of India for 25 crops currently at the beginning of each season viz. Rabi and Kharif. Following are the 25 crops covered by MSP: KHARIF CROPS: Paddy, Jowar, Bajra, Maize, Ragi, Arhar (Tur), Moong, Urad, Cotton, Groundnut, Sunflower Seed, Soyabeen, Black Sesamum, Nigerseed, RABICROPS: Wheat, Barley, Gram, Masur (Lentil), Rapeseed/Mustard, Safflower, Toria OTHER CROPS Copra De-Husked Coconut, Jute, Sugarcane, Rationale behind the MSP is that if there is a fall in the prices of the crops, after a bumper harvest, the government purchases at the MSP and this is the reason that the priced cannot go below MSP, So this directly helps the farmers.
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