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UPSC CDS GS Economy Questions Part 1
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Question : 10
Total: 64
Which one of the following factors is not considered in determining the Minimum Support Price (MSP) in India ?
[2019 CDS-II]
Cost of production
Price trends in international and domestic markets
Cost of living index
Inter-crop price parity
Validate
Solution:
(C) In formulating Minimum Supports Price (MSP), the Commission for Agricultural Cost and Prices (CACP) considers
Cost of production
Changes in input prices
Input-output price parity
Trends in market prices
Demand and supply
Inter-crop price parity
Effect in industrial cost structure
Effect on cost of living
Effect on general price level
International price situation
Parity between prices paid and prices received by the farmers.
Effect on issue prices and implication for subsidy.
Hence option (c) is not consider in determing the MSP.
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