Question

Prime beneficiary of the Minimum Support Price (MSP) fixed by the government is ................ (Choose the correct option to fill in the blank)

• A. Labourer
• B. Consumer
• C. Trader (Buyer)
• D. Farmer

Hint:

MSP aims to protect farmers from price fluctuations and crop failures. It ensures agricultural sustainability and income support for cultivators.

Answer 1

The Correct Option is D

Minimum Support Price (MSP) is a governmental tool safeguarding farmers from significant price drops in agricultural products. It's the price at which the government buys crops from farmers, regardless of market value. MSP's main goal is to protect farmers, guaranteeing a minimum return on their produce. This lowers the chance of desperate sales and stabilizes farm income. Let's look at the choices:
Labourer (A): Labourers indirectly benefit from successful farming, but they aren't the main focus of MSP.
Consumer (B): Consumers aren't direct beneficiaries. MSPs might actually increase prices for them.
Trader (Buyer) (C): Traders often pay more because of MSP, so they don't benefit.
Farmer (D): Farmers directly gain from assured prices and income stability.
So, the correct answer is (D) Farmer.