What role did the Minimum Support Price play in agriculture post the 1991 reforms?

Correct option is C

​The correct answer is (c) It continued to protect farmers from price fluctuations.

Explanation:

•  After the 1991 Economic Reforms, which focused on liberalization, privatization, and globalization, the Minimum Support Price (MSP) system was retained to ensure a safety net for farmers.
• It continued to protect them from sudden price drops in the open market by guaranteeing a minimum price for their produce, especially for key crops like wheat and rice.

Information Booster:

Minimum Support Price (MSP):

What is MSP?

• MSP is the minimum price guaranteed by the government to farmers for their crops, regardless of market prices.
• Aims to protect farmers from price fluctuations and distress sales.
• Introduced during the Green Revolution (1966-67).

Purpose of MSP:

• Ensures fair remuneration to farmers.
• Encourages production of essential food crops.
• Maintains food security and agricultural sustainability.

Who Recommends MSP?

• Commission for Agricultural Costs and Prices (CACP) recommends MSP.
• Final approval is given by the Cabinet Committee on Economic Affairs (CCEA).

When is MSP Announced?

• Twice a year:
• Before Kharif season (monsoon crops)
• Before Rabi season (winter crops)

Crops Covered Under MSP (Total: 22 + 2 linked)

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