MCQ
Agricultural Pricing MCQ - Practice Questions with Answers
Solve 74 Agricultural Pricing questions for RAS/RPSC preparation.
Practice questions
Q11. CACP considers cost of production while recommending MSPs. 2. CACP considers demand-supply conditions while recommending MSPs. 3. CACP considers only monsoon rainfall while recommending MSPs. Which of the statements given above are correct?
Statements 1 and 2 are correct because cost of production and demand-supply conditions are expressly listed. Statement 3 is incorrect because the source lists several factors; it does not say that only monsoon rainfall is considered.
Q2Consider the following statements about PM-AASHA and its price-support architecture: 1. PM-AASHA includes the Price Support Scheme, Price Deficiency Payment Scheme and Pilot Private Procurement and Stockist Scheme. 2. Under Price Deficiency Payment Scheme, no physical procurement is done. 3. States/UTs have an option to implement either PSS or PDPS for a particular notified oilseed in a given procurement season for the entire State. 4. The Pilot Private Procurement and Stockist Scheme is meant for wheat and paddy procurement through FCI. Which of the statements given above are correct?
Statements 1, 2 and 3 are correct. PIB describes PM-AASHA as including PSS, PDPS and PPSS; PDPS involves no physical procurement; and States/UTs may choose PSS or PDPS for notified oilseeds in a season. Statement 4 is incorrect because PPSS is described as a pilot option in selected APMCs for oilseeds, while wheat and paddy are handled under existing Department of Food and Public Distribution schemes.
Q3Consider the following statements about crop categories under the MSP framework: 1. Paddy, jowar, bajra, maize, ragi, tur, moong, urad, groundnut, soyabean, sunflower seed, sesamum, nigerseed and cotton are kharif crops in the mandated MSP basket. 2. Wheat is listed as a kharif crop in the mandated MSP basket. 3. Jute and copra are the two other commercial crops in the mandated MSP basket. 4. Cotton is one of the two other commercial crops rather than a kharif crop in the mandated MSP basket. Which of the statements given above are correct?
Statements 1 and 3 are true as the PIB release lists those kharif crops and identifies jute and copra as the two other commercial crops. Statement 2 is false because wheat is a rabi crop. Statement 4 is false because cotton is listed among kharif crops, not among the two other commercial crops.
Q4Consider the following statements about the Price Deficit Payment Scheme under PM-AASHA: 1. It involves compulsory physical procurement by the Government. 2. It provides direct payment of the difference between MSP and the selling or modal price to pre-registered farmers. 3. It covers all foodgrains including wheat and paddy. Which of the statements given above are correct?
Statement 1 is incorrect because PDPS has no physical procurement. Statement 2 is correct: the farmer receives the difference between MSP and the selling or modal price. Statement 3 is incorrect because the cited component is for notified oilseeds, not all foodgrains.
Q5Consider the following statements regarding Minimum Support Price (MSP) in India: 1. The Commission for Agricultural Costs and Prices recommends MSPs to the Government of India. 2. In 2018-19, the Government announced that MSP would be kept at least 1.5 times the all-India weighted average cost of production. 3. MSP recommendations are made only for kharif crops. Which of the statements given above are correct?
Statement 1 is correct because CACP recommends MSPs. Statement 2 is correct because the announced principle was at least 1.5 times the all-India weighted average cost of production. Statement 3 is incorrect: CACP recommends MSPs for kharif and rabi crops, not only kharif crops.
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More questions
61. Wheat, barley and gram are listed among the Rabi MSP crops. 2. Jute and copra are listed as the two commercial MSP crops. 3. Cotton is listed as a Rabi MSP crop. Which of the statements given above are correct?
7Consider the following statements regarding the Minimum Support Prices for Kharif crops for marketing season 2026-27 approved by the Cabinet on 13 May 2026:\n1. The MSP for common paddy was raised by Rs 72 to Rs 2,441 per quintal.\n2. Sunflower seed received the highest absolute hike of Rs 622 per quintal among all kharif crops.\nWhich of the statements given above is/are correct?
8Consider the following statements regarding MSP coverage: 1. The 22 mandated crops include 14 Kharif crops. 2. The 22 mandated crops include 8 Rabi crops. 3. Jute and copra are included as commercial crops in the mandated MSP basket. Which of the statements given above are correct?
9Consider the following statements regarding agricultural pricing in India: 1. The Government announces Minimum Support Prices for 22 mandated crops and Fair and Remunerative Price for sugarcane. 2. The 22 mandated crops include 12 kharif crops. 3. The MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra respectively. 4. Fair and Remunerative Price is announced for jute and copra as the two other commercial crops. Which of the statements given above are correct?
10Consider the following statements about procurement operations at MSP: 1. Farmers are free to sell in the open market if they get better terms and price than MSP. 2. Procurement of pulses at MSP under PSS is based on the request of the concerned State Government. 3. MSP procurement centres for pulses are opened only by the Central Government without consultation with State Governments. Which of the statements given above are correct?
11Consider the following statements regarding CACP's price-policy factors: 1. CACP considers overall demand-supply conditions while recommending MSPs. 2. CACP considers inter-crop price parity while recommending MSPs. 3. CACP considers terms of trade between agricultural and non-agricultural sectors while recommending MSPs. Which of the statements given above are correct?
12Consider the following statements regarding the Price Support Scheme under PM-AASHA: 1. Procurement of pulses, oilseeds and copra at MSP is done under the Price Support Scheme. 2. The scheme is used when prices fall below MSP in the market. 3. Under this scheme, farmers receive only the price difference without physical procurement. Which of the statements given above are correct?
13Consider the following statements regarding PM-AASHA as described in PRS analysis: 1. Under PSS, the government intervenes by procuring MSP-notified crops whenever their market prices fall below MSP. 2. Procurement under PSS is made through central agencies such as NAFED, SFAC and FCI. 3. PSS procurement has largely remained limited to cereals and sugarcane. 4. Under MIS, horticulture crops not covered under MSP are procured when market price falls by more than 10%. Which of the statements given above are correct?
14Consider the following statements about the factors considered while recommending MSPs: 1. MSP recommendations ignore international price situation. 2. Inter-crop price parity is one of the factors considered. 3. MSP recommendations are based only on the cost of production. Which of the statements given above are correct?
151. The Government fixes MSPs for 22 mandated agricultural crops. 2. FRP for sugarcane is fixed on the basis of CACP recommendations. 3. MSPs are fixed only after considering recommendations of the Finance Commission. Which of the statements given above are correct?