What role does the minimum support price (MSP) play in Indian agriculture?
Encourages higher production of certain crops
Promotes land consolidation
Acts as a subsidy for large farmers
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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