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Q.

MSP is decided by the

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a

FCI

b

World Bank

c

Government

d

All of the above

answer is C.

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Detailed Solution

MSP is decided by the Government.
The Minimum Support Price is the predetermined and publicly announced price at which the government will purchase more food grains from farmers. The earnings gained are used to create stock buffers. Since it is announced every year before the crops are grown, it gives farmers an incentive to produce high-quality crops in terms of quantity and quality. Furthermore, it raises agricultural productivity. Since the MSP is decided after taking into account the circumstances of the farmers and their benefits, it promotes farmers to transition from coarse and low-quality crops to higher and superior-quality grains.

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