Question : Statement 1: The Minimum Support Price (MSP) is determined by considering factors such as input costs and market conditions.
Statement 2: The MSP applies to all agricultural crops grown in India.
Option 1: Both statements are true.
Option 2: Both statements are false.
Option 3: Statement 1 is true, and statement 2 is false.
Option 4: Statement 1 is false, and statement 2 is true.
Correct Answer:
Both statements are true.
Solution : The correct option is (a) Both statements are true.
Statement 1 is true. The government determines the MSP for various agricultural crops in India by considering factors such as production costs, input costs, market conditions, demand and supply dynamics, and the overall welfare of farmers.
Statement 2 is also true. The Minimum Support Price (MSP) is applicable to a wide range of agricultural crops grown in India, including major crops like rice, wheat, pulses, oilseeds, cotton, and sugarcane. The government announces MSPs for different crops each year to ensure that farmers receive a minimum guaranteed price for their produce.
Therefore, both statements are true. The MSP is determined by considering factors such as input costs and market conditions, and it applies to various agricultural crops grown in India.
