UPSC Prelims Practice Questions — Cabinet approves Minimum Support Prices (MSP) for Kharif Crops for Marketing Season 2026-27

Q1. The principle of fixing Minimum Support Prices (MSP) of notified crops at a level of at least one-and-a-half times the all-India weighted average cost of production was formally announced as a government policy in which one of the following?

  • A. Union Budget 2018-19
  • B. Report of the National Commission on Farmers (Swaminathan Committee), 2006
  • C. Report of the Committee on Doubling Farmers' Income, 2018
  • D. National Agriculture Policy, 2000

Q2. With reference to the crops for which the Government of India notifies a Minimum Support Price (MSP) on the recommendation of the CACP, consider the following crops: 1. Ragi 2. Nigerseed 3. Safflower 4. Jute Which of the above is/are correctly identified as notified Kharif MSP crops?

  1. Ragi
  2. Nigerseed
  3. Safflower
  4. Jute
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1, 2 and 4
  • D. 3 and 4 only

Q3. Out of the 14 Kharif crops for which the Government of India announces a Minimum Support Price (MSP) every year, how many are oilseeds?

  • A. Three
  • B. Four
  • C. Five
  • D. Six

Q4. Under the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), which one of the following is the nodal Department for implementation of the Price Support Scheme (PSS) component?

  • A. Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution
  • B. Department of Agriculture & Farmers' Welfare, Ministry of Agriculture and Farmers' Welfare
  • C. Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution
  • D. Department of Commerce, Ministry of Commerce and Industry

Q5. Which one of the following is the final approving authority for the Minimum Support Prices (MSP) of mandated agricultural crops in India?

  • A. Commission for Agricultural Costs and Prices (CACP)
  • B. Cabinet Committee on Economic Affairs (CCEA)
  • C. Department of Agriculture & Farmers Welfare, Ministry of Agriculture
  • D. Food Corporation of India (FCI)

Q6. With reference to sugarcane pricing in India, what is meant by the 'Fair and Remunerative Price' (FRP)?

  • A. The minimum price payable by sugar mills to sugarcane farmers, fixed by the Central Government on the recommendation of the CACP
  • B. The price at which the Food Corporation of India procures sugarcane directly from farmers under the Price Support Scheme
  • C. The ex-mill price of sugar declared by the Central Government below which sugar mills cannot sell sugar in the open market
  • D. The price recommended by individual State Governments to compensate farmers when international sugar prices fall below a threshold

Q7. In India, the 'Fair and Remunerative Price' (FRP) of sugarcane is statutorily determined under which one of the following?

  • A. Sugarcane (Control) Order, 1966 issued under the Essential Commodities Act, 1955
  • B. Sugar Development Fund Act, 1982
  • C. Sugar Cess Act, 1982 read with the Levy Sugar Supply (Control) Order, 1979
  • D. Agricultural Produce (Grading and Marking) Act, 1937

Q8. Which one of the following is the largest producer of soybean in India?

  • A. Maharashtra
  • B. Madhya Pradesh
  • C. Rajasthan
  • D. Gujarat

Q9. Which one of the following is the nodal agency designated for procurement of cotton under the Price Support Scheme at the declared Minimum Support Price?

  • A. Food Corporation of India (FCI)
  • B. National Agricultural Cooperative Marketing Federation (NAFED)
  • C. Cotton Corporation of India (CCI)
  • D. National Cooperative Consumers' Federation (NCCF)

Q10. In the context of MSP operations for foodgrains in India, which one of the following best describes the 'Decentralized Procurement Scheme (DCP)'?

  • A. State Governments or their designated agencies procure foodgrains at MSP, store them, and distribute under TPDS within the State, with FCI meeting any deficit or taking the surplus
  • B. FCI directly procures paddy and wheat at the mandi level without involving State Government agencies, to reduce intermediation
  • C. NAFED procures pulses and oilseeds at prevailing market prices whenever such prices fall below the notified MSP
  • D. The Centre transfers the difference between mandi price and MSP directly to the farmer's bank account in lieu of any physical procurement