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Q.

Maximum Support Price is fixed by:


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a

Farmer

b

Industrialist

c

Businessman

d

Government 

answer is D.

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Detailed Solution

The government fixes the maximum support price
1)      The MSP is the rate at which the public authority buys crops from farmers and depends on an estimation of something like one-and-a-half times the expense of cultivation incurred by the farmers.
2)      MSP is a "base cost" for any yield that the public authority considers profitable for farmers and subsequently meriting "support".
3)      The Commission at Agricultural Costs and Costs (CACP) suggests MSPs for 22 commanded yields and fair and profitable value (FRP) for sugarcane.
  
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