📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    Consider the following statements regarding the Minimum

    Support Price (MSP) system in India: I. MSP is the rate at which the government purchases crops from farmers. II. It is based on a calculation of at least one-and-a-half times the cost of production incurred by farmers. III. MSP is fixed thrice a year on the recommendations of the Commission for Agricultural Costs and Prices (CACP). Which of the statements given above is/are not correct?
    A I only Correct Answer Incorrect Answer
    B II only Correct Answer Incorrect Answer
    C III only Correct Answer Incorrect Answer
    D I and II only Correct Answer Incorrect Answer
    E II and III only Correct Answer Incorrect Answer

    Solution

    MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers. Union Budget for 2018-19 had announced that MSP would be kept at levels of 1.5 the cost of production. MSP is fixed twice a year on the recommendations of the CACP, which is a statutory body.

    Practice Next
    More Current Financial Awareness Questions

    Relevant for Exams:

    ask-question