Consider the following statements:
1.Regarding the procurement of foodgrains, Government of India follows a procurement target rather than an open-ended procurement policy
2.Government of India announces minimum support prices only for cereals
3. For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform Central issue prices to the State/Union Territories.
Which of the statements given above is/are correct?
Explanation:
1st and 2nd statements are incorrect.
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 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).
The Cabinet Committee of Economic Affairs announces MSP for various crops at the beginning of each sowing season based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).