Minimum Support Prices for crops - Budget & Economic Survey
Q. Which of the following statement / s is / are correct?
1. The Commission for Agricultural Costs and Prices (CACP) recommends Minimum Support Prices (MSPs) at national level.
2. MSPs at national level are recommended for 2 crops – Wheat and Rice only.- Published on 06 Aug 15a. Only 1
b. Only 2
c. Both 1 and 2
d. None of the above
ANSWER: Only 1
MSPs at national level are recommended for 23 crops, but effectively price support operates primarily in wheat and rice and that too in selected states. This creates incentive structures highly skewed in favor of wheat and rice. While the country is dependent on imports for pulses and oilseeds (edible oils), their prices often fall below the MSP as there is no effective price support.
