Consider the following statements: 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. 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? 1 only 2 only Both 1 and 2 Neither 1 nor 2

In the case of all cereals, pulses and oil-seeds, the procurement

Consider the following statements:

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.
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?

1 only
2 only
Both 1 and 2
Neither 1 nor 2

Answer: D

Explanation

The procurement of oil seeds, pulses and cereals is not unlimited. Under PM-AASHA guidelines limit the procurement to 25% of pulses and oil seeds production at MSP. So, statement 1 is not correct.

Market price, by definition, is determined through demand and supply force. So, it is difficult to predict whether market price for any crop must be lower or higher as compared to MSP. So, statement 2 is also not correct.

Exam Year: 2020