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?
- 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.
- 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.
- 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?
- MSPs are not fixed by applying one uniform mark-up over cost of production to every crop.
- Wheat growers earn a higher profit per hectare than safflower growers.
- Wheat's all-India weighted average cost of production per quintal is lower than safflower's.
- 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?
- The Centre may start PSS procurement in a State on its own initiative, without any request from that State.
- PSS procurement of a notified pulse takes place only when its market price falls below MSP during the peak harvest period.
- PSS can procure the entire national production of a notified oilseed in a season if its market price stays below MSP.
- 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?
- Green Box support must be kept within the de minimis ceiling that applies to a country's agricultural production.
- 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.
- 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?
- 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.
- 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