Minimum Support Price is fixed by the Government to safeguard the interests of the __________.
(Choose the correct option to fill in the blank)
Minimum Support Price is fixed by the Government to safeguard the interests of the __________.
(Choose the correct option to fill in the blank)
Show Hint
- Consumers
- Farmers
- Wholesalers
- Middlemen
The Correct Option is B
Solution and Explanation
Minimum Support Price (MSP) is a price announced by the government for crops such as wheat and paddy. The government promises to buy the crop at this price if the market price falls below it.
The aim is to give farmers a safe floor price for their produce.
Step 2: Find who is protected:
Crop prices swing a lot. When the market is flooded after harvest, prices can fall below the cost of farming. The MSP stops this loss.
So the group that gains is the farmers.
Step 3: Why the other options are wrong:
(A) Consumers: they are helped by the public distribution system and price controls, not by a floor price. A higher floor price can even raise what they pay.
(C) Wholesalers: they trade the crop and make profit from the margin. MSP is not meant for them.
(D) Middlemen: they often cut the income of farmers. MSP reduces the room for such exploitation.
Final Answer:
MSP is fixed to safeguard the interests of farmers. Option (B).
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