GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Safeguard the interest of consumers.
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Safeguard the interest of farmers
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Enhance export earnings from agricultural commodities
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None of these
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Detailed explanation-1: -MSP is price fixed by Government of India to protect the producer-farmers-against excessive fall in price during bumper production years. The minimum support prices are a guarantee price for their produce from the Government.
Detailed explanation-2: -MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP), an apex advisory body for pricing policy under the Ministry of Agriculture.
Detailed explanation-3: -Minimum Support Price (MSP) is a form of government intervention to insure the farmers against a steep decline in the prices of their goods and to help them prevent losses. It is the minimum price set by the government for certain agricultural products. The farmers are paid a pre-announced price for their crops.