UPSC Prelims 2020 · GS Paper 1 · Q79

Economy

Medium · MSP-based Procurement, Cereals and Pulses

Consider the following statements regarding Minimum Support Price (MSP)-based procurement of cereals, pulses and oilseeds in India:

1. The government is obligated to procure an unlimited quantity of these crops at MSP in every State and Union Territory.

2. MSP for cereals and pulses is fixed at a level that market prices are guaranteed never to exceed.

Which of the statements given above is/are correct?