UPSC Prelims Practice Questions — Centre’s procurement price for potato is half of input cost: farmers

Q1. The Market Intervention Scheme (MIS), under which perishable crops such as potato — not covered by any notified Minimum Support Price — are procured at a Market Intervention Price, is operationalised by which one of the following?

  • A. Department of Agriculture & Farmers Welfare, Ministry of Agriculture & Farmers Welfare
  • B. Department of Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution
  • C. Department of Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution
  • D. Department of Rural Development, Ministry of Rural Development

Q2. Unlike the ad-hoc Market Intervention Price fixed for perishables, the Minimum Support Price (MSP) is announced annually by the Union Government primarily on the recommendation of which one of the following?

  • A. Commission for Agricultural Costs and Prices (CACP)
  • B. Cabinet Committee on Economic Affairs (CCEA)
  • C. NITI Aayog
  • D. National Bank for Agriculture and Rural Development (NABARD)

Q3. Under PM-AASHA, the Price Deficiency Payment Scheme (PDPS) is best described as which one of the following?

  • A. Direct payment to pre-registered oilseed farmers of the difference between the MSP and the selling/modal price, without physical procurement of the crop
  • B. Physical procurement of notified pulses, oilseeds and copra at MSP by central nodal agencies during peak harvest
  • C. Fixing of a remunerative intervention price for perishable horticultural crops such as tomato, onion and potato
  • D. A fund administered by the Department of Consumer Affairs to shield consumers from price volatility

Q4. With reference to the components of PM-AASHA and their implementing departments, consider the following: 1. Price Support Scheme (PSS) — Department of Agriculture & Farmers Welfare 2. Price Stabilisation Fund (PSF) — Department of Consumer Affairs 3. Market Intervention Scheme (MIS) — Department of Consumer Affairs 4. Price Deficiency Payment Scheme (PDPS) — Department of Agriculture & Farmers Welfare Which of the above is/are correctly identified?

  1. Price Support Scheme (PSS) — Department of Agriculture & Farmers Welfare
  2. Price Stabilisation Fund (PSF) — Department of Consumer Affairs
  3. Market Intervention Scheme (MIS) — Department of Consumer Affairs
  4. Price Deficiency Payment Scheme (PDPS) — Department of Agriculture & Farmers Welfare
  • A. 1 and 3
  • B. 1, 2 and 4
  • C. 2 and 3 only
  • D. 1, 3 and 4

Q5. Under the revised guidelines governing the Market Intervention Scheme, up to what maximum share of a State's production of a notified perishable commodity can be procured?

  • A. 15 per cent
  • B. 20 per cent
  • C. 25 per cent
  • D. 40 per cent

Q6. The following statements contrast the revised Market Intervention Scheme with its earlier version. Consider them: 1. The procurement ceiling has been raised from 20 per cent to 25 per cent of a State's production. 2. States now have the option to pay farmers the difference between the MIP and the selling price directly, in place of physical procurement. 3. Under the revised guidelines, the entire loss incurred in implementation is borne by the Central Government. Which of the statements given above is/are correct?

  1. The procurement ceiling has been raised from 20 per cent to 25 per cent of a State's production.
  2. States now have the option to pay farmers the difference between the MIP and the selling price directly, in place of physical procurement.
  3. Under the revised guidelines, the entire loss incurred in implementation is borne by the Central Government.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. In the Centre's 2026 approval for potato procurement in Uttar Pradesh, the 'Market Intervention Price (MIP)' of ₹6,500.9 per tonne refers to which one of the following?

  • A. The fixed price at which the State's designated agency procures potatoes from farmers under the scheme
  • B. The Minimum Support Price notified for potato by the Commission for Agricultural Costs and Prices
  • C. The prevailing wholesale mandi price of potato recorded at Agra
  • D. The reserve price below which potato cannot be traded on the e-NAM platform

Q8. With reference to the Centre's 2026 decision on potato procurement in Uttar Pradesh, consider the following statements: 1. The approved procurement quantity is 20 lakh metric tonnes. 2. The Market Intervention Price was fixed at ₹6,500.9 per tonne, equivalent to about ₹6.5 per kg. 3. The procurement was approved under the Price Support Scheme (PSS) component of PM-AASHA. Which of the statements given above is/are correct?

  1. The approved procurement quantity is 20 lakh metric tonnes.
  2. The Market Intervention Price was fixed at ₹6,500.9 per tonne, equivalent to about ₹6.5 per kg.
  3. The procurement was approved under the Price Support Scheme (PSS) component of PM-AASHA.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q9. Which one of the following is the largest potato-producing State in India?

  • A. West Bengal
  • B. Uttar Pradesh
  • C. Bihar
  • D. Gujarat

Q10. In the Indo-Gangetic plains of northern India, potato is predominantly cultivated during which one of the following cropping seasons?

  • A. Kharif (monsoon) season
  • B. Rabi (winter) season
  • C. Zaid (summer) season
  • D. Round the year without a defined season

Q11. Once the Centre approves a Market Intervention Scheme proposal for a distress crop like potato, the actual physical procurement of the produce from farmers is carried out at the ground level by which one of the following?

  • A. The State-designated / State-nominated procurement agency
  • B. The Food Corporation of India (FCI)
  • C. The National Bank for Agriculture and Rural Development (NABARD)
  • D. The Central Warehousing Corporation (CWC)

Q12. With reference to the framework of agricultural marketing and price support in India, consider the following statements: 1. Regulation of agricultural markets (APMCs) is a subject on which States enact their own laws, with the Centre having circulated a Model APMC Act for adoption. 2. NAFED and NCCF act as Central Nodal Agencies for procurement and market intervention. 3. Under the Market Intervention Scheme, procurement is undertaken by the State-designated agency up to 25 per cent of the State's production. 4. The Minimum Support Price for perishable crops such as potato and onion is notified annually by the CACP. Which of the above is/are NOT correct?

  1. Regulation of agricultural markets (APMCs) is a subject on which States enact their own laws, with the Centre having circulated a Model APMC Act for adoption.
  2. NAFED and NCCF act as Central Nodal Agencies for procurement and market intervention.
  3. Under the Market Intervention Scheme, procurement is undertaken by the State-designated agency up to 25 per cent of the State's production.
  4. The Minimum Support Price for perishable crops such as potato and onion is notified annually by the CACP.
  • A. 1 and 2
  • B. 4 only
  • C. 3 and 4
  • D. 2 only