Question

Which of the following statements is true about the policy of the government of fixing the minimum support price of the agricultural commodities?

Options

• It is the floor price

• It provides renumeration price to the farmers

• It is fixed above the market price

• All of these

Answer 1

All of these

Explanation:

The Minimum Support Price is a price floor legally set above the competitive market price to protect agricultural producers from price crashes. By guaranteeing a mandatory minimum purchasing rate, it ensures a remunerative and stable income for farmers, covering their production costs and guaranteeing profit.