Single Answer MCQ
Q-00014160

What role does the minimum support price (MSP) play in Indian agriculture?

1

Encourages higher production of certain crops

2

Promotes land consolidation

3

Acts as a subsidy for large farmers

4

Provides insurance against crop failure

Answer and Solution

Answer

A. Encourages higher production of certain crops

Solution:

The correct answer is 'Encourages higher production of certain crops'. The MSP guarantees farmers a minimum profit, thus motivating them to grow specific crops.

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