Choose the given statement as true/false:

The rising MSP has raised the maintenance cost of producing food grains by the government.

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True

false

answer is A.

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Detailed Solution

The above statement is true.
Government purchases of agricultural grains now cost more to maintain due to increased Minimum Support Prices (MSP). Leading foodgrain-producing states like Punjab, Haryana, and Andhra Pradesh applied pressure, which led to the increased food grain procurement at raised MSP. Other factors contributing to growth include rising FCI storage and shipping expenses. The extensive use of water for rice farming has also resulted in environmental damage and a drop in water levels, endangering the viability of these states' agricultural growth. So the given statement is true that rising MSP also raises the government's maintenance cost of producing food grains.

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