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GS Paper IUPSC Prelims 2020
Agriculture & Rural Economy
Question No. 39Interactive Test Mode
00:00
+2-0.66

Q39. Consider the following statements: 1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. Which of the statements given above is/are correct?

Consider the following statements:

  1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
  2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. Which of the statements given above is/are correct?
Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2020 • Indian Economy

Correct Answer: Option (D) — Neither 1 nor 2

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is incorrect: Government procurement at MSP is not unlimited across all crops and regions; it is subject to operational limits, state procurement caps, buffer stock targets, and agency capacity (such as FCI, NAFED).

Statement 2 is incorrect: MSP acts as a floor price to shield farmers against price crashes; market prices frequently rise above MSP depending on seasonal demand, supply shortages, and international market conditions.

Elimination Heuristic & Exam Approach

Beware of extreme absolute qualifiers like 'unlimited in any State' and 'will never rise'. Such absolute assertions in economic policy questions are almost invariably incorrect.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2020 (Q39)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Agriculture & Rural Economy
Official Answer KeyOption (D) — Neither 1 nor 2

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Frequently Asked Questions — UPSC Prelims 2020 Q39

What is the official answer for UPSC Prelims 2020 GS Paper I Question 39 (Indian Economy)?

The official UPSC answer key for this 2020 Indian Economy (Agriculture & Rural Economy) question is Option (D): "Neither 1 nor 2". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2020 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Agriculture & Rural Economy". You can explore all repeated questions from Agriculture & Rural Economy in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Agriculture & Rural Economy UPSC Prelims question using option elimination?

Beware of extreme absolute qualifiers like 'unlimited in any State' and 'will never rise'. Such absolute assertions in economic policy questions are almost invariably incorrect.

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