UPSC Prelims Practice Questions — Cabinet approves Minimum Support Prices for Raw Jute for 2026-27 Season

Q1. With reference to the Minimum Support Price (MSP) for raw jute approved for the 2026-27 season, consider the following statements. Which of the above is/are NOT correct?

  1. The MSP for TD-3 grade raw jute has been fixed at Rs. 5,925 per quintal.
  2. It represents an increase of Rs. 275 per quintal over the 2025-26 season.
  3. It assures growers a return of 61.8% over the all-India weighted average cost of production.
  4. The 2026-27 MSP for raw jute was approved by the Cabinet Committee on Political Affairs (CCPA).
  • A. 1 and 2 only
  • B. 3 only
  • C. 2 and 3 only
  • D. 4 only

Q2. With reference to the raw jute MSP trajectory culminating in the 2026-27 season, consider the following statements. Which of the statements given above is/are correct?

  1. The 2025-26 season MSP for raw jute was Rs. 5,650 per quintal.
  2. The raw jute MSP rose from Rs. 2,400 per quintal in 2014-15 to Rs. 5,925 per quintal in 2026-27.
  3. The 2026-27 MSP is about 2.5 times the 2014-15 level.
  4. The 2024-25 season MSP for raw jute was Rs. 5,650 per quintal.
  • A. 1, 2 and 3 only
  • B. 1 and 4 only
  • C. 2, 3 and 4 only
  • D. 3 and 4 only

Q3. With reference to the institutional roles in fixing and implementing the MSP for raw jute, consider the following statements. Which of the above is/are NOT correct?

  1. The Commission for Agricultural Costs and Prices (CACP) is an advisory body that recommends the MSP.
  2. The Jute Corporation of India is the central nodal agency for price support operations for raw jute.
  3. The Jute Corporation of India functions as a public sector undertaking under the Ministry of Textiles.
  4. The final MSP for raw jute is notified and approved by the CACP.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 3 only
  • D. 4 only

Q4. Price support operations for raw jute are undertaken by the Jute Corporation of India under the administrative control of which one of the following ministries?

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

Q5. With reference to the principle of fixing MSP at 1.5 times the cost of production, consider the following statements. Which of the statements given above is/are correct?

  1. The principle of keeping MSP at least 1.5 times the cost of production was announced in the Union Budget 2018-19.
  2. For computing the assured return, the CACP reckons the A2+FL cost.
  3. The CACP considers both A2+FL and C2 costs while recommending MSP.
  4. The principle guarantees a minimum margin of 100% over the cost of production.
  • A. 1, 2 and 3 only
  • B. 1 and 4 only
  • C. 2, 3 and 4 only
  • D. 3 only

Q6. In the context of MSP fixation, the cost concept 'A2+FL' refers to which one of the following?

  • A. All paid-out (actual) costs incurred by the farmer plus the imputed value of unpaid family labour
  • B. Only the imputed rent and interest on owned land and fixed capital assets
  • C. The comprehensive cost that additionally includes imputed rent on owned land, i.e., the C2 cost
  • D. Exclusively the cash expenses on seeds and fertilizers, with no labour component of any kind

Q7. Of the 22 crops mandated for MSP by the Government of India, the largest number belong to which one of the following categories?

  • A. Kharif crops
  • B. Rabi crops
  • C. Commercial crops
  • D. Summer crops

Q8. Through which of the following does the Jute Corporation of India operationalise MSP procurement of raw jute in the jute-growing states?

  • A. Its own departmental purchase centres and State cooperative bodies
  • B. Only through the Agricultural Produce Market Committee (APMC) mandis
  • C. Exclusively through the godowns of the Food Corporation of India
  • D. Through the Cotton Corporation of India acting as its sub-agent

Q9. Which one of the following states accounts for the largest share of India's raw jute production?

  • A. Bihar
  • B. Assam
  • C. West Bengal
  • D. Odisha

Q10. By how much (in absolute terms) has the MSP of raw jute increased from the 2014-15 season to the 2026-27 season?

  • A. Rs. 2,400 per quintal
  • B. Rs. 3,525 per quintal
  • C. Rs. 5,925 per quintal
  • D. Rs. 275 per quintal

Q11. In the context of the MSP for raw jute, the term 'TD-3' refers to which one of the following?

  • A. The benchmark grade of raw jute (of Fair Average Quality) for which the MSP is fixed
  • B. The total daily procurement target set for the Jute Corporation of India
  • C. A tax-deduction category applicable to exporters of jute goods
  • D. The third amendment made to the Jute Packaging Materials Act