MSP, APMC & Procurement — Set 6
Indian Agriculture · MSP, APMC और खरीद · Questions 51–60 of 160
Which state has the highest wheat procurement under MSP?
Correct Answer: B. Punjab
Punjab contributes the highest volume of wheat to the central pool through MSP-based procurement. Punjab's highly commercialized farming and well-developed mandi network facilitate large-scale procurement. Haryana is the second largest contributor. Punjab and Haryana together contribute about 50-60% of India's total wheat procurement in most years.
Procurement price in the context of MSP operations is the price at which:
Correct Answer: B. Government agencies buy crops from farmers
Procurement price is the price at which government agencies (FCI, state agencies) buy food grains from farmers at the mandi level. For most crops, the procurement price is equal to the announced MSP. The Central Issue Price (CIP) is the price at which FCI issues grain to states for PDS. The difference between MSP and CIP is the food subsidy burden on the government.
Central Issue Price (CIP) is the price at which:
Correct Answer: B. FCI issues grain to state governments for PDS
Central Issue Price (CIP) is the price at which FCI allocates food grains to state governments for distribution through the Public Distribution System. State governments add their own distribution costs before issuing to consumers at the retail (fair price shop) level. Under NFSA, CIP was set at very low levels (Rs 2/kg wheat, Rs 3/kg rice). Since January 2024, PMGKAY provides grains free of cost under Antyodaya and priority household categories.
What is the role of State Procurement Agencies (SPAs) in the MSP system?
Correct Answer: B. Physical procurement of crops from farmers on behalf of states/Centre
State Procurement Agencies (SPAs) like PUNGRAIN (Punjab), HAFED (Haryana), and MARKFED physically procure food grains from farmers at MSP. They work alongside FCI in states with decentralized procurement. Their procurement is eventually transferred to FCI's central pool. SPAs play a crucial role in reducing FCI's operational burden.
Decentralized procurement (DCP) system allows which entities to procure for central pool?
Correct Answer: B. State governments
Under the Decentralized Procurement (DCP) scheme, state governments procure, store, and distribute food grains themselves for the central pool, rather than routing everything through FCI. DCP states get reimbursement from the Centre at economic cost. This reduces the burden on FCI's storage and logistics infrastructure. States like Chhattisgarh, Odisha, and West Bengal use DCP for rice procurement.
What is the minimum level of procurement at which FCI must maintain grain stocks (buffer norms)?
Correct Answer: B. Buffer norms are fixed by Cabinet Committee on Economic Affairs
Buffer stock norms specifying minimum levels of wheat and rice to be held at different dates of the year are approved by the Cabinet Committee on Economic Affairs (CCEA). These norms ensure adequate stocks for PDS distribution and emergency purposes. If stocks fall below buffer norms, the government may restrict exports or increase imports. If stocks exceed buffer norms significantly, the government releases surplus via OMSS.
NAFED's role in market intervention operations includes:
Correct Answer: B. Procuring oilseeds and pulses when prices fall below MSP
NAFED (National Agricultural Cooperative Marketing Federation of India) conducts Market Intervention Operations (MIO) and Price Support Scheme (PSS) operations by procuring oilseeds and pulses when market prices fall below MSP. This protects farmers from distress selling. NAFED stores the procured produce and releases it when prices rise. NAFED also manages the buffer stocking operations for onion.
The term 'mandi' in agricultural marketing refers to:
Correct Answer: B. A regulated wholesale agricultural market
A mandi is a regulated wholesale market for agricultural commodities. Under the APMC system, mandis are regulated by State APMC Acts and managed by APMCs (Agricultural Produce Market Committees). Farmers bring their produce to mandis for auction-based price discovery. Mandis also provide infrastructure like weighing facilities, storage, and banking services.
How many Kharif crops are currently covered under MSP?
Correct Answer: C. 14
Currently, 14 Kharif crops are covered under MSP. These include paddy, jowar, bajra, maize, ragi, arhar (tur), moong, urad, groundnut, sunflower seed, soybean, sesamum, nigerseed, and cotton. The MSP for Kharif crops is announced before the Kharif sowing season (June-July). CACP recommends the prices after consulting state governments and analysing production costs.
How many Rabi crops are currently covered under MSP?
Correct Answer: B. 6
Currently, 6 Rabi crops are covered under MSP. These include wheat, barley, gram (chana), masur (lentil), rapeseed/mustard, and safflower. The MSP for Rabi crops is announced before the Rabi sowing season (October-November). Punjab and Haryana are major producers of wheat and contribute the most to Rabi procurement.