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 ?
Show answer
Answer: D. Statement 1 is wrong: MSP procurement is not unlimited; for pulses and oilseeds it is capped (for example under PM-AASHA, up to 25% of production), and many States procure little. Statement 2 is wrong: MSP is a floor price, and market prices often go above it. So neither.
Watch for: MSP is described as a 'guarantee', so students assume unlimited procurement.
Why the other options are wrong
- A. Wrong because procurement at MSP is limited.
- B. Wrong because market prices can and do rise above MSP.
- C. Wrong because both statements are false.
Source to check: Commission for Agricultural Costs and Prices (cacp.dacnet.nic.in); PM-AASHA guidelines (2018), Ministry of Agriculture
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.