Question

Under the minimum support price (MSP) the minimum guaranteed prices are fixed to set a floor below which market prices cannot fall. In case no one buys it, the ______ will buy the stock at this minimum guaranteed prices.
1. zilla parishad
2. gram panchayat
3. government
4. sarpanch

Answer 1

Correct Answer - Option 3 : government

The correct answer is government.

• Under the minimum support price (MSP) the minimum guaranteed prices are fixed to set a floor below which market prices cannot fall. In case no one buys it, the government will buy the stock at this minimum guaranteed prices.

• The MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
• The Cabinet Committee on Economic Affairs (CCEA) takes a final decision on the MSPs.
• The Food Corporation of India (FCI) is the nodal central agency of India, along with other State Agencies that undertakes procurement of crops.

• The CACP is an attached office of the Ministry of Agriculture and Farmers Welfare.
• It is formed in 1965.
• It is a statutory body.
• It submits separate reports recommending prices for Kharif and Rabi seasons.