Minimum Support Price (MSP) was introduced in:
Show answer & explanation
Correct answer: B
Explanation
Correct Answer:
1960s
Explanation:
The Minimum Support Price system was established in India during the 1960s as a market intervention strategy to stabilize agricultural prices and ensure food security. The Agricultural Prices Commission now known as the Commission for Agricultural Costs and Prices was set up in January 1965. The first formal MSP was declared by the Government of India for wheat during the 1966-67 marketing season, following the recommendations of the L.K. Jha Committee, as part of the Green Revolution to encourage farmers to adopt high-yielding varieties.
Key Points:
The MSP system was introduced in the mid-1960s specifically 1965 to 1966 alongside the Green Revolution to protect farmers from price volatility.
It acts as a floor price guaranteed by the government to purchase crops if market rates fall below the set threshold.
The Agricultural Prices Commission was renamed the Commission for Agricultural Costs and Prices in March 1985.
Important Questions and Answers:
Question: In which year was the Agricultural Prices Commission established in India?
Answer: 1965.
Question: For which crop was the first Minimum Support Price introduced in India?
Answer: Wheat in the 1966-67 season.