UPSC Agriculture – Chapter 10: Minimum Support Prices and Procurement (25 MCQs)
UPSC Agriculture – Chapter 10: Minimum Support Prices and Procurement (25 MCQs) – 25 questions, subject: Agriculture. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.
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The Commission for Agricultural Costs and Prices recommends MSPs for how many mandated crops?
Correct Answer: A [22]
Explanation:
The CACP's mandate covers 22 crops – 14 kharif, 6 rabi, jute and copra – besides the FRP for sugarcane.
The Agricultural Prices Commission was renamed the Commission for Agricultural Costs and Prices in:
Correct Answer: B [1985]
Explanation:
The Agricultural Prices Commission of 1965 was renamed the Commission for Agricultural Costs and Prices in 1985.
The cost concept that adds rent on owned land and interest on owned fixed capital is:
Correct Answer: D [C2]
Explanation:
C2 is the comprehensive cost: A2 plus family labour, plus rent on owned land and interest on owned fixed capital.
Since the Union Budget 2018-19, MSPs are fixed at least at 1.5 times:
Correct Answer: B [A2 + FL]
Explanation:
Since the 2018-19 Budget, MSPs are set at least 1.5 times A2 + FL, paid-out costs plus imputed family labour.
Decentralised Procurement of foodgrains began in:
Correct Answer: A [1997-98]
Explanation:
Under Decentralised Procurement, begun in 1997-98, States procure, store and distribute grain and the Centre reimburses costs.
Under PM-AASHA, paying farmers the gap between MSP and the market price without buying the crop is called:
Correct Answer: C [Price Deficiency Payment Scheme]
Explanation:
The Price Deficiency Payment Scheme pays farmers the gap between MSP and the market price without physically buying the crop.
The Fair and Remunerative Price replaced the Statutory Minimum Price for sugarcane from:
Correct Answer: C [2009-10]
Explanation:
An amendment to the Sugarcane (Control) Order, 1966 replaced the Statutory Minimum Price with the FRP from the 2009-10 season.
Which of the following does NOT have an MSP?
Correct Answer: B [Areca nut]
Explanation:
Areca nut is a plantation crop outside the 22 mandated crops, so no MSP is announced for it.
The Shanta Kumar Committee (2015) estimated that the share of farm households selling to procurement agencies at MSP was about:
Correct Answer: A [6 per cent]
Explanation:
Using NSSO data, the Shanta Kumar Committee found only about 6 per cent of farm households sold to agencies at MSP.
Consider the following statements:
1. The CACP is an attached office of the Ministry of Agriculture and Farmers Welfare.
2. The CCEA takes the final decision on MSPs.
3. The CACP was created by an Act of Parliament.
Which of the statements given above is/are correct?
Correct Answer: B [1 and 2 only]
Explanation:
The CACP is an attached office and the CCEA decides MSPs; the CACP was not created by any Act.
Assertion (A): Farmers in Punjab and Haryana benefit more from MSP than farmers in Bihar.
Reason (R): Procurement of rice and wheat at MSP is concentrated in a few States with well-developed procurement networks.
Correct Answer: A [Both A and R are true, and R is the correct explanation of A]
Explanation:
Both are true, and concentrated procurement in Punjab and Haryana is exactly why their farmers realise MSP more than Bihar's.
Madhya Pradesh's Bhavantar Bhugtan Yojana (2017) was an example of:
Correct Answer: D [price deficiency payment]
Explanation:
Bhavantar Bhugtan Yojana paid farmers the difference between MSP and the market price, a price deficiency payment.
From the 2024-25 season, procurement of notified pulses, oilseeds and copra at MSP under the Price Support Scheme is capped at:
Correct Answer: D [25 per cent of national production]
Explanation:
From 2024-25, PSS procurement is capped at 25 per cent of national production; tur, urad and masur are outside the cap.
The MSP of toria is derived from the MSP of:
Correct Answer: A [rapeseed-mustard]
Explanation:
Toria's MSP is not separately recommended; it is derived from the MSP of rapeseed-mustard.
The National Commission on Farmers recommended that MSP should be at least:
Correct Answer: C [C2 + 50 per cent]
Explanation:
The National Commission on Farmers (Swaminathan) recommended MSP at least 50 per cent above the comprehensive cost C2.
Some States announce a price for sugarcane higher than the FRP, known as the:
Correct Answer: A [State Advised Price]
Explanation:
States such as Uttar Pradesh, Punjab and Haryana announce a State Advised Price above the centrally approved FRP.
Arrange the following in chronological order:
1. PM-AASHA
2. Agricultural Prices Commission renamed CACP
3. Decentralised Procurement scheme
4. Agricultural Prices Commission set up
Select the correct answer using the code given below:
Correct Answer: C [4-2-3-1]
Explanation:
1965, 1985, 1997-98, 2018.
Which of the following is a kharif crop with MSP?
Correct Answer: B [Ragi]
Explanation:
Ragi (finger millet) is one of the 14 kharif crops for which an MSP is announced.
Under the Price Support Scheme, pulses and oilseeds are mainly procured by:
Correct Answer: D [NAFED and other central agencies]
Explanation:
Under the Price Support Scheme, NAFED and other central nodal agencies such as NCCF buy notified pulses and oilseeds at MSP.
Minimum Support Prices are approved by the:
Correct Answer: C [Cabinet Committee on Economic Affairs]
Explanation:
The CACP only recommends; the Cabinet Committee on Economic Affairs takes the final decision on MSPs.
Consider the following statements:
1. In the case of all cereals, pulses and oilseeds, 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?
Correct Answer: D [Neither 1 nor 2]
Explanation:
Both are false: procurement of pulses and oilseeds is limited, and MSP is a floor that market prices can exceed.
Consider the following:
1. Areca nut
2. Barley
3. Coffee
4. Finger millet
5. Groundnut
6. Sesamum
7. Turmeric
The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above?
Correct Answer: B [2, 4, 5 and 6 only]
Explanation:
barley, ragi (finger millet), groundnut and sesamum.
Consider the following statements:
1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds.
2. Niger is cultivated as a Kharif crop.
3. Some tribal people in India use niger seed oil for cooking.
How many of the above statements are correct?
Correct Answer: C [All three]
Explanation:
Niger has an MSP, is sown in kharif, and its seed oil is used for cooking by some tribal communities.
The Fair and Remunerative Price of Sugarcane is approved by the
Correct Answer: A [Cabinet Committee on Economic Affairs]
Explanation:
The CACP recommends the FRP of sugarcane, but the Cabinet Committee on Economic Affairs approves it.
Which of the following factors/policies were affecting the price of rice in India in the recent past?
1. Minimum Support Price
2. Government's trading
3. Government's stockpiling
4. Consumer subsidies
Select the correct answer using the code given below:
Correct Answer: D [1, 2, 3 and 4]
Explanation:
MSP, government trading, stockpiling and PDS consumer subsidies all shaped the market price of rice.
➤ Full notes, maps, tables, a reason for every option and Mains PYQs – U16 · Agriculture (UPSC book, ₹249): www.shanmugamiasacademy.in/study-materials/upsc-agriculture
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