GyanGramConsider the following statements: 1. In the case of all cereals, pulses and oil-seeds, the procurement at Mi…
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Consider the following statements:
1. 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.
2. 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?
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• Correct Answer: D
• Procurement at MSP is not unlimited for all crops; pulses and oilseeds often have quantity caps under schemes like PM-AASHA.
• MSP is a price floor, not a ceiling; market prices can and do rise above MSP, and farmers may sell in the open market.
• Both statements are factually incorrect.
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