Consider the following statements about the Minimum Support Price MSP It is directed at providing in...........

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Consider the following statements about the Minimum Support Price (MSP).

It is directed at providing insurance to agricultural producers against any sharp fall in farm prices.
State governments cannot offer MSP.
MSP operations are restricted to food crops only.

Select the correct answer using the codes below.

1 and 2 only

1 only

2 and 3 only

1 and 3 only

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Explanation:

Statement 2: While the Centre supports the procurement of wheat and rice, if states want to ensure their farmers can access minimum support prices for other crops, they need to use their own funds. They can also declare a bonus above the central minimum support price to encourage farmers to grow more of a certain crop. Maharashtra, for example, offered a bonus of Rs 500 per quintal for tur dal, above the declared price of Rs 5,050 in April 2017. In fact, Centre and states are even cooperating to make MSP effective

Statement 3: It covers other items as well, for e.g. minor forest produce such as honey.