A
The rate at which the government purchases crops from farmers, insuring them against sharp price falls.
B
The maximum retail price fixed by private traders for essential food grains.
C
The international benchmark price for exporting surplus paddy.
D
The cost of cultivation reimbursed entirely as an input subsidy before sowing.
Correct answer: (a) The rate at which the government purchases crops from farmers, insuring them against sharp price falls.
Explanation
Option A is correct because MSP is defined as the rate at which the government purchases crops from farmers to insure them against price drops. Options B, C, and D are incorrect definitions.