{"id":91758,"date":"2025-06-01T11:05:06","date_gmt":"2025-06-01T11:05:06","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91758"},"modified":"2025-06-01T11:05:06","modified_gmt":"2025-06-01T11:05:06","slug":"consider-the-following-statements-in-the-case-of-all-cereals-pulse","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/","title":{"rendered":"Consider the following statements:\n  In the case of all cereals, pulse"},"content":{"rendered":"<p>Consider the following statements:<\/p>\n<ul>\n<li>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.<\/li>\n<li>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.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct ?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option4&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2020<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2020.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2020\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe question asks about the correctness of two statements regarding the Minimum Support Price (MSP) regime in India.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; Statement 1: Procurement at MSP is not unlimited for all cereals, pulses, and oilseeds, or in all States\/UTs. While MSP is declared for many crops, effective procurement at MSP is strong primarily for wheat and rice in certain states, mainly to meet the requirements of the Public Distribution System (PDS) and buffer stocks. Procurement for other crops is often limited or handled through different schemes like Price Support Scheme (PSS) or Price Deficiency Payment Scheme (PDPS), and is not guaranteed unlimited procurement from all farmers nationwide.<br \/>\n&#8211; Statement 2: MSP is fixed as a *minimum* price to protect farmers from excessive price falls. Market prices are determined by demand and supply forces and can rise significantly above the MSP, especially during periods of high demand or supply shortages. Fixing MSP at a level that the market price will *never* exceed is contrary to the purpose of MSP as a floor price.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nThe government&#8217;s procurement operations primarily focus on food grains like wheat and rice through agencies like the Food Corporation of India (FCI). For other crops, procurement operations are often limited in scale and geographical reach, and market prices frequently fluctuate above and below the MSP.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Consider the following statements:\n  In the case of all cereals, pulse\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/#more-91758\">Detailed Solution<span class=\"screen-reader-text\">Consider the following statements:<br \/>\n  In the case of all cereals, pulse<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1288,1379,1120],"class_list":["post-91758","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1288","tag-agriculture-and-allied-sectors","tag-economic-development","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consider the following statements:  In the case of all cereals, pulse<\/title>\n<meta name=\"description\" content=\"The question asks about the correctness of two statements regarding the Minimum Support Price (MSP) regime in India. - Statement 1: Procurement at MSP is not unlimited for all cereals, pulses, and oilseeds, or in all States\/UTs. While MSP is declared for many crops, effective procurement at MSP is strong primarily for wheat and rice in certain states, mainly to meet the requirements of the Public Distribution System (PDS) and buffer stocks. Procurement for other crops is often limited or handled through different schemes like Price Support Scheme (PSS) or Price Deficiency Payment Scheme (PDPS), and is not guaranteed unlimited procurement from all farmers nationwide. - Statement 2: MSP is fixed as a *minimum* price to protect farmers from excessive price falls. Market prices are determined by demand and supply forces and can rise significantly above the MSP, especially during periods of high demand or supply shortages. Fixing MSP at a level that the market price will *never* exceed is contrary to the purpose of MSP as a floor price.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consider the following statements:  In the case of all cereals, pulse\" \/>\n<meta property=\"og:description\" content=\"The question asks about the correctness of two statements regarding the Minimum Support Price (MSP) regime in India. - Statement 1: Procurement at MSP is not unlimited for all cereals, pulses, and oilseeds, or in all States\/UTs. While MSP is declared for many crops, effective procurement at MSP is strong primarily for wheat and rice in certain states, mainly to meet the requirements of the Public Distribution System (PDS) and buffer stocks. Procurement for other crops is often limited or handled through different schemes like Price Support Scheme (PSS) or Price Deficiency Payment Scheme (PDPS), and is not guaranteed unlimited procurement from all farmers nationwide. - Statement 2: MSP is fixed as a *minimum* price to protect farmers from excessive price falls. Market prices are determined by demand and supply forces and can rise significantly above the MSP, especially during periods of high demand or supply shortages. Fixing MSP at a level that the market price will *never* exceed is contrary to the purpose of MSP as a floor price.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:05:06+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Consider the following statements:  In the case of all cereals, pulse","description":"The question asks about the correctness of two statements regarding the Minimum Support Price (MSP) regime in India. - Statement 1: Procurement at MSP is not unlimited for all cereals, pulses, and oilseeds, or in all States\/UTs. While MSP is declared for many crops, effective procurement at MSP is strong primarily for wheat and rice in certain states, mainly to meet the requirements of the Public Distribution System (PDS) and buffer stocks. Procurement for other crops is often limited or handled through different schemes like Price Support Scheme (PSS) or Price Deficiency Payment Scheme (PDPS), and is not guaranteed unlimited procurement from all farmers nationwide. - Statement 2: MSP is fixed as a *minimum* price to protect farmers from excessive price falls. Market prices are determined by demand and supply forces and can rise significantly above the MSP, especially during periods of high demand or supply shortages. Fixing MSP at a level that the market price will *never* exceed is contrary to the purpose of MSP as a floor price.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/","og_locale":"en_US","og_type":"article","og_title":"Consider the following statements:  In the case of all cereals, pulse","og_description":"The question asks about the correctness of two statements regarding the Minimum Support Price (MSP) regime in India. - Statement 1: Procurement at MSP is not unlimited for all cereals, pulses, and oilseeds, or in all States\/UTs. While MSP is declared for many crops, effective procurement at MSP is strong primarily for wheat and rice in certain states, mainly to meet the requirements of the Public Distribution System (PDS) and buffer stocks. Procurement for other crops is often limited or handled through different schemes like Price Support Scheme (PSS) or Price Deficiency Payment Scheme (PDPS), and is not guaranteed unlimited procurement from all farmers nationwide. - Statement 2: MSP is fixed as a *minimum* price to protect farmers from excessive price falls. Market prices are determined by demand and supply forces and can rise significantly above the MSP, especially during periods of high demand or supply shortages. Fixing MSP at a level that the market price will *never* exceed is contrary to the purpose of MSP as a floor price.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:05:06+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/","url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/","name":"Consider the following statements: In the case of all cereals, pulse","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:05:06+00:00","dateModified":"2025-06-01T11:05:06+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The question asks about the correctness of two statements regarding the Minimum Support Price (MSP) regime in India. - Statement 1: Procurement at MSP is not unlimited for all cereals, pulses, and oilseeds, or in all States\/UTs. While MSP is declared for many crops, effective procurement at MSP is strong primarily for wheat and rice in certain states, mainly to meet the requirements of the Public Distribution System (PDS) and buffer stocks. Procurement for other crops is often limited or handled through different schemes like Price Support Scheme (PSS) or Price Deficiency Payment Scheme (PDPS), and is not guaranteed unlimited procurement from all farmers nationwide. - Statement 2: MSP is fixed as a *minimum* price to protect farmers from excessive price falls. Market prices are determined by demand and supply forces and can rise significantly above the MSP, especially during periods of high demand or supply shortages. Fixing MSP at a level that the market price will *never* exceed is contrary to the purpose of MSP as a floor price.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-in-the-case-of-all-cereals-pulse\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"Consider the following statements: In the case of all cereals, pulse"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91758"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91758\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}