Minimum Support Price

Question 1

What is the purpose of the Minimum Support Price (MSP) list for karif and rabi crops?

Answer 1

To ensure farmers receive a fair price for their produce and to protect them from price fluctuations.

Question 2

What does MSP stand for?

Answer 2

Minimum Support Price.

Question 3

Which crops are included in the MSP list for karif season?

Answer 3

Rice, maize, jowar, bajra, ragi, arhar, urad, moong, groundnut, soybean, sunflower, sesamum, nigerseed, cotton, and sugarcane.

Question 4

Which crops are included in the MSP list for rabi season?

Answer 4

Wheat, barley, gram (chana), masur (lentil), rapeseed-mustard, safflower, and jute.

Question 5

What is the main authority responsible for fixing MSP for various crops?

Answer 5

The Commission for Agricultural Costs and Prices (CACP).

Question 6

True or False: MSP is legally binding on both the central and state governments.

Answer 6

True.

Question 7

What is the mechanism through which MSP helps in stabilizing market prices?

Answer 7

By providing a floor price for farmers, it prevents the market prices from falling below a certain level.

Question 8

What is the role of the Food Corporation of India (FCI) in the MSP system?

Answer 8

To procure food grains at MSP to ensure price support operations for farmers.

Question 9

What is the significance of MSP in the context of agricultural distress?

Answer 9

MSP acts as a safety net for farmers by guaranteeing them a minimum price for their crops, reducing the impact of price fluctuations.

Question 10

What is the MSP fixed based on for different crops?

Answer 10

Recommendations of the CACP after considering various factors.

Question 11

What is the impact of MSP on the Indian economy?

Answer 11

MSP ensures food security, price stability, and income support for farmers, contributing to overall economic growth.

Question 12

How does MSP influence farmers’ decisions regarding crop cultivation?

Answer 12

Farmers tend to grow crops for which MSP is announced, leading to potential market distortions.

Question 13

What is the main criticism of the MSP system?

Answer 13

It distorts market prices, leads to overproduction of certain crops, and increases government expenditure on procurement.

Question 14

What role does MSP play in the context of agricultural reforms in India?

Answer 14

MSP has been a focal point of discussions on agricultural reforms, with calls for reforms to ensure better price discovery mechanisms for farmers.

Question 15

How does MSP impact consumer prices of agricultural produce?

Answer 15

MSP can influence consumer prices indirectly by affecting the supply and demand dynamics in the market.

Question 16

What are the challenges faced by the MSP system in India?

Answer 16

Issues of implementation, procurement capacity, price distortions, and the need for periodic revision of MSP rates.

Question 17

What is the relationship between MSP and the concept of fair and remunerative price (FRP) in sugarcane cultivation?

Answer 17

MSP applies to various crops, while FRP specifically pertains to sugarcane, ensuring a minimum price for sugarcane farmers.

Question 18

How does MSP contribute to farmers’ income security?

Answer 18

By providing a guaranteed minimum price for their crops, farmers have a safety net against market price fluctuations, ensuring income security.

Question 19

What is the significance of MSP in the context of government procurement of food grains?

Answer 19

MSP acts as a benchmark price for government procurement of food grains, ensuring price support for farmers and food security for the country.

Question 20

What are the potential benefits of a well-functioning MSP system?

Answer 20

Stabilizing market prices, ensuring fair returns to farmers, enhancing food security, and reducing income disparities in the agricultural sector.

Question 21

What are the implications of MSP on agricultural trade policies?

Answer 21

MSP can impact trade policies by influencing domestic production, consumption, and export-import dynamics of agricultural commodities.

Question 22

What is the primary objective of the MSP system in India?

Answer 22

To protect the interests of farmers by ensuring a minimum support price for their crops, thereby promoting agricultural sustainability and economic growth.