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?
[UPSC Civil Services Exam – 2020 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
- While procurement is open-ended, it is not unlimited since our buffer stock is limited. Hence statement 1 is incorrect.
- Market price has no link with Minimum Support Prices and it can go below or above of MSP depends upon the demand of crop in the market, hence statement 2 is incorrect.