UPSC Prelims Practice Questions — SC seeks Centre’s response to plea on proper MSP for crops

Q1. In the cost-of-production framework used by the Commission for Agricultural Costs and Prices (CACP), which one of the following best describes the 'C2' cost?

  • A. Only the actual paid-out expenses incurred by the farmer in cash and kind
  • B. Paid-out expenses plus the imputed value of unpaid family labour
  • C. A2+FL cost plus imputed rent on owned land and interest on owned fixed capital assets
  • D. The A2 cost plus a fixed statutory margin of 50 per cent

Q2. With reference to the 'A2' category of cultivation cost used by CACP, consider the following: 1. Expenditure on seeds and fertilisers is included in A2. 2. Wages paid to hired labour are included in A2. 3. Rent paid for leased-in land is included in A2. 4. The imputed rental value of the farmer's own land is included in A2. Which of the above is/are NOT correct?

  1. Expenditure on seeds and fertilisers is included in A2.
  2. Wages paid to hired labour are included in A2.
  3. Rent paid for leased-in land is included in A2.
  4. The imputed rental value of the farmer's own land is included in A2.
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 3 and 4

Q3. With reference to the MSP recommendation of the Swaminathan National Commission on Farmers and its subsequent treatment by the government, consider the following statements: 1. The Commission recommended MSP at least 50% above the C2 cost, whereas since 2018-19 the government fixes MSP at 1.5 times the A2+FL cost. 2. The National Commission on Farmers submitted its report in 2006. 3. The National Policy for Farmers, 2007 incorporated the Commission's C2+50% MSP formula. Which of the statements given above is/are correct?

  1. The Commission recommended MSP at least 50% above the C2 cost, whereas since 2018-19 the government fixes MSP at 1.5 times the A2+FL cost.
  2. The National Commission on Farmers submitted its report in 2006.
  3. The National Policy for Farmers, 2007 incorporated the Commission's C2+50% MSP formula.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. The Swaminathan National Commission on Farmers recommended that MSP be at least 50 per cent above the 'weighted average cost of production'. This cost referred to which one of the following?

  • A. A2 (actual paid-out costs)
  • B. A2+FL (paid-out costs plus imputed family labour)
  • C. C2 (comprehensive cost including imputed land rent and interest on capital)
  • D. The A2+FL cost net of the value of family labour

Q5. In terms of its legal basis, the Minimum Support Price (MSP) regime in India is best described as resting on which of the following?

  • A. A statutory entitlement created under the Essential Commodities Act, 1955
  • B. An executive policy decision, with MSP having no statutory backing and not being legally enforceable against private buyers
  • C. A fundamental right flowing from Article 39 of the Constitution
  • D. A binding directive issued by the Supreme Court in a public interest litigation

Q6. After the CACP submits its recommendations, the final decision on the level of Minimum Support Prices is taken by which one of the following?

  • A. The Commission for Agricultural Costs and Prices itself
  • B. The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister
  • C. The Ministry of Finance
  • D. NITI Aayog

Q7. In the 2026 writ petition seeking a legally guaranteed MSP based on the C2 cost, the Supreme Court issued notice to the Union Government and which other body?

  • A. The Food Corporation of India (FCI)
  • B. The Commission for Agricultural Costs and Prices (CACP)
  • C. NITI Aayog
  • D. The National Bank for Agriculture and Rural Development (NABARD)

Q8. The 2026 MSP writ petition before the Supreme Court was filed by farmers from which single state, cited in the plea as bearing the largest farmer-suicide burden underpinning the demand?

  • A. Punjab
  • B. Maharashtra
  • C. Karnataka
  • D. Uttar Pradesh

Q9. The body now known as the Commission for Agricultural Costs and Prices (CACP) was first constituted in 1965 under which name?

  • A. Agricultural Prices Commission
  • B. Commission for Agricultural Costs and Prices
  • C. Agricultural Costs Commission
  • D. Food and Agriculture Prices Board

Q10. Under the Price Support Scheme of PM-AASHA, procurement of pulses, oilseeds and copra at MSP is carried out mainly through which of the following agencies?

  • A. Food Corporation of India and State Warehousing Corporations
  • B. NAFED and NCCF
  • C. Cotton Corporation of India and Jute Corporation of India
  • D. APEDA and NABARD

Q11. Article 32 of the Constitution, under which the 2026 MSP plea was filed, was famously described by Dr. B.R. Ambedkar as which one of the following?

  • A. The 'heart and soul of the Constitution'
  • B. The 'conscience of the Constitution'
  • C. The 'cornerstone of Indian federalism'
  • D. The 'bulwark against executive tyranny'

Q12. In India, official national statistics on farmer and agricultural-labourer suicides are compiled and published by which one of the following?

  • A. The National Sample Survey Office (NSSO)
  • B. The National Crime Records Bureau (NCRB)
  • C. The Registrar General of India
  • D. The Directorate of Economics and Statistics, Ministry of Agriculture