Minimum support price of a foodgrain is the example of _____. |
Floor Pricing Price Ceiling Maximum retail Price Price Discrimination |
Floor Pricing |
The correct answer is Option (1) → Floor Pricing Minimum Support Price (MSP): It is the minimum price set by the government at which it purchases crops from farmers. It acts as a guaranteed floor below which the market price of the crop is not allowed to fall, protecting farmers from distress sales and market fluctuations. |