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?
Answer
The correct answer is B: Neither 1 nor 2. MSP procurement is not unlimited (it is constrained operationally and by crops), and MSPs are sometimes below or close to market prices. Both statements are incorrect.
A.2 only
B.Neither 1 nor 2✓ Correct
C.1 only
D.Both 1 and 2
Explanation
MSP procurement is not unlimited (it is constrained operationally and by crops), and MSPs are sometimes below or close to market prices. Both statements are incorrect.
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