Consider the following statements: 1) In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2) In the case of cereals and pulses, the MSP is fixed in any State\UT at a level to which the market price will never rise. Which of the statements given above is/are correct?

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CollectorBabu · Accepted Answer

Correct Answer: Neither 1 nor 2. As of now, CACP recommends MSPs of 23 commodities, which comprise 7 cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed), and 4 commercial crops (copra, sugarcane, cotton and raw jute). Therefore MSP is not announced for all cereals, pulses and oil seeds. Hence statement 1 is incorrect. MSP is the minimum support price for the farmers i.e usually the market price is above MSP as if market price falls below MSP then the farmer can always sell to the government at MSP.

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