Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Rural Development

Question:
Which policy instrument ensured farmers against any sharp fall in prices of the crop?
Options:
Maintaining buffer stock
Public distribution system
Minimum support price
All of the above
Correct Answer:
Minimum support price
Explanation:
The state ensured farmers with a minimum support price, which means that due to any unforeseen circumstance if the price of the commodity falls, the government will directly buy the product from the farmer at a pre-determined price (MSP).