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    Question

    Which of the following offers a sort of price guarantee

    on the part of farmers to cultivate the crop?
    A Procurement price Correct Answer Incorrect Answer
    B Minimum Support Price Correct Answer Incorrect Answer
    C Equilibrium price Correct Answer Incorrect Answer
    D Issue price Correct Answer Incorrect Answer

    Solution

    MSP is price fixed by Government of India to protect the producer - farmers - against excessive fall in price during bumper production years. The minimum support prices are a guarantee price for their produce from the Government.

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