Q1.
Assertion (A): Minimum Support Price (MSP) in India is not legally enforceable on private traders.
Reason (R): MSP is an administered price decided by the executive without statutory backing.
Options:
A. Both A and R are correct and R is the correct explanation of A
B. Both A and R are correct but R is not the correct explanation of A
C. A is correct but R is incorrect
D. A is incorrect but R is correct
Answer: A
Explanation:
- MSP is an administered price (executive decision), hence no statutory compulsion on private players.
- Therefore, absence of legal enforceability directly flows from its non-statutory nature.
Q2.Match the following MSP-related components:
| List I | List II |
| A. CACP | 1. Approves MSP |
| B. CCEA | 2. Recommends MSP |
| C. FRP | 3. Advisory price |
| D. MSP | 4. Legally binding price |
Select the correct answer using the code below:
A. A-2, B-1, C-3, D-4
B. A-2, B-1, C-4, D-3
C. A-2, B-3, C-1, D-4
D. A-3, B-1, C-2, D-4
Answer: B
Explanation:
- CACP → Recommends MSP
- CCEA → Final approval authority
- FRP → Statutory (sugarcane)
- MSP → Advisory/non-binding
Q3.With reference to MSP calculation, consider the following statements:
- A2 includes all imputed costs such as rent on owned land.
- C2 includes A2 + FL plus rent on owned land and interest on capital.
- MSP is currently fixed at 1.5 times C2 cost for all crops.
Which of the statements given above is/are correct?
A. 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: A
Explanation:
- Statement 1: Incorrect → A2 = paid-out costs only.
- Statement 2: Correct → C2 = comprehensive cost.
- Statement 3: Incorrect → MSP based on 1.5 × (A2+FL), not C2.
Q4.Which one of the following is NOT correctly associated with MSP framework?
A. Cotton – Kharif crop under MSP
B. Copra – Commercial crop under MSP
C. Sugarcane – MSP notified crop
D. Toria – Derived MSP crop
Answer: C
Explanation:
- Sugarcane is governed by FRP (statutory), not MSP.
- Others are correctly classified under MSP ecosystem.
Q5.Consider the following statements regarding MSP operations in India:
- MSP ensures procurement of all notified crops by the government.
- MSP announcements are timed before sowing seasons to influence cropping decisions.
- MSP covers cereals, pulses, oilseeds, and selected commercial crops.
Which of the statements given above is/are correct?
A. 1 and 3 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: C
Explanation:
- Statement 1: Incorrect → MSP ≠ guaranteed procurement (only wheat, rice mainly procured).
- Statement 2: Correct → Timing influences farmer decisions.
- Statement 3: Correct → Broad crop coverage.
