The minimum Support Price was announced by the government to provide:

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Incentives to farmers for raising production

Incentives to traders to earn maximum profit from farmers

Incentives to moneylenders to lend maximum to farmers

None of the above

answer is A.

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Detailed Solution

The minimum Support Price was announced by the government to provide incentives to farmers for raising production.
The Indian government uses the Minimum Support Price (MSP) as a tool for market intervention to protect farmers from a sudden drop in crop prices. Based on recommendations of the Commission for Agricultural Costs and Prices, the Government of India announces the minimum support prices at the start of the sowing season for specific crops (CACP). MSP is a price set by the Indian government to prevent farmers and producers from sharply declining prices during years of bumper crop production. The government guarantees them a fixed price for their produce through the minimum support prices. The primary goals are to buy food grains for public distribution and to assist the farmers who are forced to sell their crops at a loss.

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