UPSC CSE Prelims
Question 48
Consider the following statements:
- In the case of all cereals, pulses, and oilseeds, 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?
View correct answer and explanation
Correct answer: D
Correct Option: D (Neither 1 nor 2)
Explanation: MSP announcement is not a guarantee of unrestricted procurement of every cereal, pulse or oilseed in every State. MSP is a procurement reference, not a ceiling that market prices can never cross.
Statement / Pair / Item-wise Analysis:
1. Incorrect - Procurement arrangements differ by crop, scheme, quantity, agency and State; they are not universally unlimited.
2. Incorrect - Market prices can rise above MSP due to demand/supply and MSP is a floor for procurement, not a permanent price ceiling.
Option-wise Analysis:
A. Incorrect-includes incorrect item 1 (Procurement arrangements differ by crop, scheme, quantity, agency and State; they are not universally unlimited).
B. Incorrect-includes incorrect item 2 (Market prices can rise above MSP due to demand/supply and MSP is a floor for procurement, not a permanent price ceiling).
C. Incorrect-includes incorrect item 1 (Procurement arrangements differ by crop, scheme, quantity, agency and State; they are not universally unlimited); includes incorrect item 2 (Market prices can rise above MSP due to demand/supply and MSP is a floor for procurement, not a permanent price ceiling).
D. Correct-includes all and only valid statements/items none.