Topic Details (Notes format)

MSP Reforms and Foodgrain Procurement

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

The Minimum Support Price ensures a floor for farmers’ produce, primarily for wheat and paddy, managed by FCI. Criticisms include overproduction of water-intensive crops and distortions in crop diversification. Reforms suggest direct benefit transfers, rationalizing MSP coverage, or linking MSP to market-based eNAM mechanisms. For exam angles, examine how procurement affects government stockpiles, fiscal outlays (food subsidy), and concerns about rational water usage or nutritional security across states.

Practice Questions

What is “open market operations” (OMO)?

View Question

Which of the following sectors contributes the most to India’s GDP?

View Question

Which of the following is considered a public good?

View Question

What is the term for the ability of an economy to produce more output from the same inputs?

View Question

What is meant by “crowding out” in economics?

View Question

Which is the largest source of tax revenue for the Government of India?

View Question

What is the Phillips Curve?

View Question

What is the concept of “invisible hand” associated with?

View Question

Which of the following is a feature of monopolistic competition?

View Question

What does the “Human Development Index” measure?

View Question