UPSC Prelims Practice Questions — MSP for kharif crops hiked; farm groups criticise rates

Q1. With reference to the institutional process of fixing Minimum Support Prices in India, consider the following statements. Which of the above is/are correctly identified?

  1. The Commission for Agricultural Costs and Prices (CACP) recommends MSPs to the government.
  2. The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, gives the final approval to MSPs.
  3. The CACP functions under the Ministry of Agriculture and Farmers Welfare.
  4. MSPs are finally notified by the NITI Aayog.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2 and 3 only
  • D. 1, 2 and 4

Q2. The final approval to the Minimum Support Prices recommended for a crop season rests with which one of the following bodies?

  • A. Cabinet Committee on Economic Affairs
  • B. Commission for Agricultural Costs and Prices
  • C. NITI Aayog
  • D. Cabinet Committee on Political Affairs

Q3. With reference to the Swaminathan Commission's recommendation and the 1.5x MSP formula, consider the following statements. Which of the above is/are NOT correct?

  1. The National Commission on Farmers (2006) was chaired by M.S. Swaminathan.
  2. It recommended fixing MSP at least 50% above the weighted average cost of production.
  3. The government adopted the 1.5x principle in the Union Budget 2018-19.
  4. The 1.5x benchmark actually applied by the government is calculated exclusively on the C2 cost.
  • A. 1 only
  • B. 2 and 3 only
  • C. 4 only
  • D. 1 and 4 only

Q4. The CACP computes cost of production at different levels. With reference to these cost concepts, consider the following statements. Which of the above is/are correctly identified?

  1. A2 covers paid-out costs such as seeds, fertiliser and hired labour.
  2. A2+FL adds the imputed value of unpaid family labour.
  3. C2 adds imputed rent on owned land and interest on capital assets over and above A2+FL.
  4. C2, by definition, excludes any interest on owned capital assets.
  • A. 1, 2 and 3
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1, 3 and 4

Q5. For the kharif Marketing Season 2026-27, which one of the following crops received the highest absolute increase in MSP over the previous season?

  • A. Sunflower seed
  • B. Cotton (medium staple)
  • C. Sesamum
  • D. Paddy (common)

Q6. With reference to the MSPs approved for the kharif Marketing Season 2026-27, consider the following statements. Which of the above is/are correctly identified?

  1. Paddy (Common) MSP is fixed at ₹2,441 per quintal.
  2. Paddy (Grade 'A') MSP is fixed at ₹2,461 per quintal.
  3. MSPs for the 2026-27 kharif season were approved for 14 crops.
  4. Nigerseed received a larger absolute increase than sunflower seed.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 3 and 4 only

Q7. Farm groups linked their criticism of the 2026-27 MSP hike to the anticipated India-U.S. trade deal. Their apprehension chiefly refers to which one of the following?

  • A. Tariff concessions permitting cheaper agricultural imports that could undercut MSP-supported domestic prices
  • B. A prohibition on Indian agricultural exports to the United States
  • C. A mandatory withdrawal of MSP required under WTO rules
  • D. Removal of geographical-indication protection for Indian crops

Q8. With reference to farm bodies' criticism of the 2026-27 kharif MSP, consider the following statements. Which of the above is/are correctly identified?

  1. The Samyukta Kisan Morcha demanded procurement on the C2+50% formula instead of the existing A2+FL+50% method.
  2. Farm unions demanded a legal guarantee of MSP for all 23 crops.
  3. A C2+50% basis would raise MSPs roughly 25-30% above current levels.
  4. The government had offered assured MSP procurement contracts for all 23 crops.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2 and 3 only
  • D. 1, 3 and 4

Q9. Under the Price Support Scheme of PM-AASHA, pulses and oilseeds are procured mainly through which one of the following agencies?

  • A. NAFED
  • B. Food Corporation of India
  • C. APEDA
  • D. Small Farmers' Agri-Business Consortium

Q10. Comparing the procurement arrangements for different MSP crops, consider the following statements. Which of the statements given above is/are correct?

  1. Cereals are procured primarily by the Food Corporation of India, whereas pulses and oilseeds are procured under the Price Support Scheme of PM-AASHA.
  2. NAFED and NCCF are the main procurement agencies for pulses and oilseeds under PM-AASHA.
  3. MSP is fixed for 32 crops, though assured procurement in practice remains skewed towards paddy and wheat.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q11. With reference to the origin and institutional history of the MSP system in India, consider the following statements. Which of the above is/are correctly identified?

  1. The MSP regime began in 1966-67 with wheat during the Green Revolution.
  2. The Agricultural Prices Commission was set up in 1965.
  3. It was renamed the Commission for Agricultural Costs and Prices in 1985.
  4. The CACP functions under the Ministry of Commerce and Industry.
  • A. 1, 2 and 3
  • B. 2 and 4 only
  • C. 1 and 4 only
  • D. 1, 2 and 4

Q12. Regarding its legal status, the Minimum Support Price in India is best described as which one of the following?

  • A. A non-statutory price policy declared by the executive, with no legal obligation on private buyers to purchase at that price
  • B. A statutory floor price enforceable against all buyers under a Central Act
  • C. A price judicially fixed by the Supreme Court for notified crops
  • D. A guaranteed procurement right available to farmers of all 23 crops under a Central law