Consider the following statements: 1. In the case of all cereals, pulses and oil-seeds, the procurement at…
Consider the following statements:
1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Solution
Under PM-AASHA, procurement of pulses and oilseeds is capped at 25% of production — not unlimited (1 wrong). Market price for cereals/pulses can certainly rise above MSP based on demand-supply (2 wrong). Answer: (d).