Consider the following statements regarding Minimum support price MSP It is the price that gove...........

Economic Affairs Agricultural Marketing and Prices

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Consider the following statements regarding Minimum support price (MSP)

It is the price that government agencies pay whenever they procure the particular crop.
The Centre currently fixes MSPs for 23 farm commodities.
The Govt. is legally bound to pay MSP when the open market price of the crop falls below the announced price.

Select the incorrect statement.

2 only

2&3 only

3 only

None of the above

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Explanation:

Both statements 1&2 are correct.

Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. The minimum support prices are a guaranteed price for their produce from the Government.

The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
Currently, MSP for 23 crops is recommended by CACP, which comprise seven cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), five pulses (gram, tur, moong, urad, lentil), seven oilseeds (groundnut, rapeseed-mustard, soyabean, sesamum, sunflower, safflower, nigerseed), and four commercial crops (copra, sugarcane, cotton and raw jute).
However, currently, MSP does not have any legal backing.

Hence only statement 3rd is incorrect.