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Consider the following statements

1. In the case of all cereals, pulses and oil-seeds the procurements 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?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2



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1. Statement 1 is incorrect: The procurement at minimum support price (MSP) is not unlimited for all cereals, pulses, and oilseeds in every state or union territory of India. The procurement quantity is determined based on various factors such as production estimates, government policy, and market conditions.

2. Statement 2 is incorrect: The MSP is not fixed at a level to which the market price will never rise for cereals and pulses. The MSP is set by the government as a support price to ensure a minimum income for farmers, but market prices can fluctuate based on supply and demand dynamics.


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