Agriculture and Allied Sectors (Part

41. Which of the followings are the objectives of the Commission for Agricultural Costs and Prices (CACP)? [I.A.S. (Pre) 1995]

1. To stabilize agricultural prices

2. To ensure meaningful real income levels to the farmers

3. To protect the interest of the consumers by providing essential agricultural commodities at reasonable rates through public distribution system

4. To ensure maximum price for the farmer

Select the correct answer from the codes given below:

(a) 1,2 and 3
(b) 1,2 and 4
(c) 1,3, and 4
(d) 2,3 and 4

Correct Answer: (a) 1,2 and 3

Solution:The Commission for Agricultural Costs & Prices (CACP) is mandated to recommend Minimum Support Prices (MSPs) to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production in line with the emerging demand patterns in the country. Assurance of a remunerative and stable price environment is considered very important for increasing agricultural production and productivity since the market place for agricultural produce tends to be inherently unstable, which often inflict undue losses on the growers, even when they adopt the best available technology package and produce efficiently. Public procurement of foodgrains on the basis of MSPs also ensures the food stocks for public distribution to protect the interest of consumers by providing essential agricultural commodities at reasonable rate through public distribution system. Towards this end, MSP for major agricultural products are fixed by the government, each year, after taking into account the recommendations of the Commission.

42. Public procurement of foodgrains at support prices ensures the following : [R.A.S./R.T.S. (Pre) 2013]

(A) Stability in farm prices

(B) Remunerative prices to the farmers

(C) Building food stocks for public distribution

Which of the above statements are correct?

(a) (A) and (B)
(b) (B) and (C)
(c) (A), (B) and (C)
(d) only (C)

Correct Answer: (c) (A), (B) and (C)

Solution:The Commission for Agricultural Costs & Prices (CACP) is mandated to recommend Minimum Support Prices (MSPs) to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production in line with the emerging demand patterns in the country. Assurance of a remunerative and stable price environment is considered very important for increasing agricultural production and productivity since the market place for agricultural produce tends to be inherently unstable, which often inflict undue losses on the growers, even when they adopt the best available technology package and produce efficiently. Public procurement of foodgrains on the basis of MSPs also ensures the food stocks for public distribution to protect the interest of consumers by providing essential agricultural commodities at reasonable rate through public distribution system. Towards this end, MSP for major agricultural products are fixed by the government, each year, after taking into account the recommendations of the Commission.

43. Consider the following statements regarding the Minimum Support Price : [U.P.P.C.S. (Mains) 2016]

I. If the market price is high, then farmers will sell their produce to the government.

II. This ensures minimum fixed prices for the farmer's yields.

III. It is helpful in Food Security Mission.

IV. It is highly profitable for the farmers as they earn Immense profit on their yields.

Among these-

(a) I, II and IV are correct
(b) II, III and IV are correct
(c) II and IV are correct
(d) II and III are correct

Correct Answer: (d) II and III are correct

Solution:Minimum Support Price promotes food security as well as ensures minimum fixed price for the farmers' produce. It encourages farmers to increase agricultural production. The farmers will sell their produce to the government only if market price is below the MSP. Therefore the purpose of MSP is to provide minimum fixed value of the produce to the farmer and not to increase the profit. MSP helps in food security because MSP is the basis of determining procurement prices for the PDS which helps in the food security.

44. The Minimum Support Price fixed by the Government for the purchase of wheat in 2013 is: [U.P. Lower Sub. (Pre) 2013]

(a) Rs. 1280/quintal
(b) Rs. 1300/quintal
(c) Rs. 1350/quintal
(d) Rs. 1380/quintal

Correct Answer: (c) Rs. 1350/quintal

Solution:The Minimum Support Price for wheat was Rs. 1350 per quintal when this question was asked. For the Rabi marketing season (RMS) 2024-25 the MSP of wheat has been increased to Rs. 2275 per quintal which is Rs. 150 more than the MSP (Rs. 2125 per quintal) for the RMS 2023-24.

45. From 4th July, 2018 the Minimum Support Price (MSP) during 2018-19 for paddy per quintal is: (a) Rs. 1,550 (b) Rs. 1,650 [U.P.P.C.S. (Pre) 2018]

(a) Rs. 1,550
(b) Rs. 1,650
(c) Rs. 1,750
(d) Rs. 1,950

Correct Answer: (c) Rs. 1,750

Solution:The Minimum Support Price (MSP) during 2018-19 for paddy (common) per quintal was at Rs. 1750 (för Grade A Rs. 1770). The Cabinet Committee on Economic Affairs (CCEA) in June, 2024 increased the MSP of paddy (common) to Rs. 2300 (for Grade ARs. 2320) per quintal for the 2024-25 crop year. It was an increase of Rs. 117 per quintal over the MSP of paddy in 2023-24.

46. Which State of India has recently decided to fix a Minimum Support Price (MSP) for fruits and vegetables? [U.P. R.O./A.R.O. (Mains) 2016]

(a) Kerala
(b) Manipur
(c) Himachal Pradesh
(d) Telangana

Correct Answer: (a) Kerala

Solution:In a move to encourage the State to become self-reliant with its fruit and vegetable production, the Kerala government has decided in October, 2020 to support farmers with a fixed Minimum Support Price (MSP) for their produce. This decision came into effect from November 1, 2020. By this decision Kerala became the first State in India to create an MSP-based system for 16 commodities which span vegetables, fruits and tubers.

47. Minimum Support Price for groundnut announced by the Government of India for 1995-96 is- [U.P.P.C.S. (Pre) 1995"]

(a) 900 Rs/quintal
(b) 875 Rs/quintal
(c) 850 Rs/quintal
(d) 800 Rs/quintal

Correct Answer: (a) 900 Rs/quintal

Solution:The Minimum Support Price of groundnut was declared Rs. 900 per quintal by the Government of India for the year 1995-96. The Minimum Support Price of groundnut for the year 2024-25 has been declared Rs. 6783 per quintal which was at Rs. 6377 per quintal for the year 2023-24.

48. The price at which the Government purchases foodgrains, is: [U.P.P.C.S. (Spl.) (Mains) 2008]

(a) Ceiling Price
(b) Market price
(c) Minimum Support Price
(d) Procurement Price

Correct Answer: (d) Procurement Price

Solution:Government purchases the agricultural produce from the farmers at Procurement Price. Procurement Price are generally higher than the MSP.

49. Which one among the followings is not a cash crop? [U.P.P.C.S. (Mains) 2012]

(a) Minimum Support Prices
(b) Cotton
(c) Soyabean
(d) Rubber

Correct Answer: (c) Soyabean

Solution:Among the given options tobacco, cotton and rubber are in the category of cash crop whereas soyabean is not a cash crop.

50. The prices at which the government purchases foodgrains for maintaining the public distribution system and for building up buffer-stock is known as : [I.A.S. (Pre) 2001]

(a) Minimum Support Prices
(b) Procurement Prices
(c) Issue Prices
(d) Ceiling Prices

Correct Answer: (b) Procurement Prices