Consider the following statements:1. In the case of all cereals, pulse

1.	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 level to which the market price will never rise.Which of the statements given above is/are correct?1. 1 only2. 2 only3. Both 1 and 24. Neither 1 nor 2
Answer» Correct Answer - Option 4 : Neither 1 nor 2 The correct answer is Neither 1 nor 2. While procurement is open-ended, it is not unlimited since our buffer stock is limited. Hence statement 1 is incorrect. Market price has no link with Minimum Support Prices and it can go below or above of MSP depends upon the demand of crop in the market, hence statement 2 is incorrect. The chief objectives of setting up MSP are: Support farmers from distress sales To procure food grains for public distribution Issue Price is the price at which the procured and buffer stock food grains are provided through the PDS. The MSP is recommended by the Commission for Agricultural Costs and Prices and announced by Cabinet Committee on Economic Affairs. MSP for sugarcane is known as Fair and Remunerative Prices. The Centre currently fixes MSPs for 23 crops and these are as follows - 7 cereals – paddy, wheat, maize, bajra, jowar, ragi and barley 5 pulses – chana, arhar/tur, urad, moong and masur. 7 oilseeds – rapeseed-mustard, groundnut, soya bean, sunflower, sesamum, safflower and nigerseed. 4 commercial crops – cotton, sugarcane, copra and raw jute.

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 level to which the market price will never rise.Which of the statements given above is/are correct?1. 1 only2. 2 only3. Both 1 and 24. Neither 1 nor 2

Answer» Correct Answer - Option 4 : Neither 1 nor 2

The correct answer is Neither 1 nor 2.

While procurement is open-ended, it is not unlimited since our buffer stock is limited. Hence statement 1 is incorrect.
Market price has no link with Minimum Support Prices and it can go below or above of MSP depends upon the demand of crop in the market, hence statement 2 is incorrect.
The chief objectives of setting up MSP are:
- Support farmers from distress sales
- To procure food grains for public distribution
Issue Price is the price at which the procured and buffer stock food grains are provided through the PDS.

The MSP is recommended by the Commission for Agricultural Costs and Prices and announced by Cabinet Committee on Economic Affairs.
MSP for sugarcane is known as Fair and Remunerative Prices.

The Centre currently fixes MSPs for 23 crops and these are as follows -
- 7 cereals – paddy, wheat, maize, bajra, jowar, ragi and barley
- 5 pulses – chana, arhar/tur, urad, moong and masur.
- 7 oilseeds – rapeseed-mustard, groundnut, soya bean, sunflower, sesamum, safflower and nigerseed.
- 4 commercial crops – cotton, sugarcane, copra and raw jute.

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