GS PrelimsAgricultureMinimum Support Price (MSP)2001

The prices at which the Government purchases food grains for maintaining the public distribution system and for building up buffer stocks is known as

A

minimum support prices

B

procurement prices

C

issue prices

D

ceiling prices

Correct Answer: Option B

Explanation

1. The question asks for the name of the prices at which the Government purchases food grains for the public distribution system (PDS) and buffer stocks. 2. Minimum Support Prices (MSP) are announced before sowing to provide a price guarantee to farmers, encouraging production. 3. Procurement Prices are the prices at which government agencies (like FCI) actually purchase the food grains from farmers. Often, these are set at or above the MSP. 4. Issue Prices are the subsidized prices at which food grains are sold through the PDS to consumers. 5. Ceiling Prices refer to a maximum price set by the government for a commodity. 6. Since the question refers to the purchase price for PDS and buffer stock, Procurement Prices is the most accurate term.

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