Consider the following statements: 1. In the case of all cereals, pulses and oil-seeds, the procurement at 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 is/are correct?
A.2 only
B.Neither 1 nor 2✓ Correct
C.Both 1 and 2
D.1 only
Explanation
Both statements are incorrect. MSP procurement is not unlimited and is subject to limits; market prices can and often do rise above MSP for various commodities.
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