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.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2023 · Q27 · General Studies · 2 marks
Consider the following statements: 1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinicia) seeds. 2. Niger is cultivated as a Kharif crop. 3. Some tribal people in India use niger seed oil for cooking. How many of the above statements are correct? -
2020 · Q61 · General Studies · 2 marks
In India, which of the following can be considered as public investment in agriculture? 1. Fixing Minimum Support Price for agricultural produce of all crops. 2. Computerization of Primary Agricultural Credit Societies 3. Social Capital development -
2020 · Q63 · General Studies · 2 marks
Which of the following factors/policies were affecting the price of rice in India in the recent past? 1. Minimum Support Price 2. Government's trading 3. Government's stockpiling 4. Consumer subsidies Select the correct answer using the code given below -
2020 · Q69 · General Studies · 2 marks
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? -
2019 · Q79 · General Studies · 2 marks
The economic cost of food grains to the Food Corporation of India is Minimum Support Price and