UPSC Civil Services 2020 Prelims General Studies Paper I

As of now, CACP recommends MSPs of 23 commodities, which comprise 7 cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed), and 4 commercial crops (copra, sugarcane, cotton and raw jute). Therefore MSP is not announced for all cereals, pulses and oil seeds. Hence statement 1 is incorrect.

MSP is the minimum support price for the farmers i.e usually the market price is above MSP as if market price falls below MSP then the farmer can always sell to the government at MSP.