UPSC Prelims Practice Questions — Minimum Support Price for Rabi: Marketing Season 2027-28

Q1. With reference to the fixing of Minimum Support Prices (MSPs) in India, consider the following statements: Which of the statements given above is/are correct?

  1. The recommendations of the Commission for Agricultural Costs and Prices on MSPs are binding on the Union Government, which can only accept them or return them for reconsideration.
  2. In recommending MSPs, the Commission for Agricultural Costs and Prices considers, besides cost of production, inter-crop price parity and the terms of trade between agriculture and non-agriculture.
  3. Because production costs differ across States, the MSP of a crop is notified separately for each State.
  • A. 2 and 3 only
  • B. 1, 2 and 3
  • C. 1 and 2 only
  • D. 2 only

Q2. For Rabi Marketing Season 2027-28, the MSP of wheat is ₹2,610 per quintal, a margin of 106% over its all-India weighted average cost of production. The MSP of safflower is ₹7,215 per quintal, a margin of 50% over its cost. The same cost-estimation methodology applies to all crops. Consider the following inferences: Which of the inferences given above can validly be drawn?

  1. MSPs are not fixed by applying one uniform mark-up over cost of production to every crop.
  2. Wheat growers earn a higher profit per hectare than safflower growers.
  3. Wheat's all-India weighted average cost of production per quintal is lower than safflower's.
  4. Safflower's MSP is at the minimum level allowed by the commitment to fix MSP at least 1.5 times cost of production.
  • A. 1, 3 and 4 only
  • B. 1 and 3 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q3. With reference to the Price Support Scheme (PSS) under PM-AASHA, consider the following statements: Which of the statements given above are correct?

  1. The Centre may start PSS procurement in a State on its own initiative, without any request from that State.
  2. PSS procurement of a notified pulse takes place only when its market price falls below MSP during the peak harvest period.
  3. PSS can procure the entire national production of a notified oilseed in a season if its market price stays below MSP.
  4. Produce that does not meet Fair Average Quality norms is not bought under PSS, even from a pre-registered farmer.
  • A. 1, 3 and 4 only
  • B. 2 and 4 only
  • C. 1 and 2 only
  • D. 2, 3 and 4 only

Q4. The government has raised the MSP of rapeseed and mustard much more than that of wheat, hoping farmers in a wheat-growing State will shift some area to mustard. Which one of the following accompanying measures would most strengthen this effect?

  • A. Cutting the import duty on edible oils to keep domestic edible oil prices low
  • B. Raising the MSP of wheat by the same percentage as the increase given to mustard
  • C. Assuring procurement of mustard at MSP whenever its market price falls below the MSP
  • D. Widening procurement of wheat at MSP to cover more mandis across the State

Q5. With reference to domestic support under the WTO Agreement on Agriculture, consider the following statements: Which of the statements given above is/are correct?

  1. Green Box support must be kept within the de minimis ceiling that applies to a country's agricultural production.
  2. The de minimis allowance for trade-distorting support is a larger share of the value of production for most developing countries than for developed countries.
  3. Food bought at current market prices for public stocks held for food security can qualify as Green Box support.
  • A. 1 only
  • B. 1 and 2 only
  • C. 1, 2 and 3
  • D. 2 and 3 only

Q6. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Even after the 2013 Bali decision, India's procurement of foodgrains at MSP for public stockholding continues to be counted as trade-distorting support under the WTO Agreement on Agriculture.
  2. The Bali decision moved the public stockholding programmes of developing countries into the Green Box.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct