Which of the following statements is/are correct regarding the Minimum Support Price (MSP) framework?
1. The current policy mandates fixing the MSP at a level of at least 1.5 times the all-India weighted average cost of production (A2+FL).
2. The final approval for MSP hikes is given by the Commission for Agricultural Costs and Prices (CACP).

Question

Accepted Answer

A) 1 only — Statement 1 is correct: The MSP policy aims to provide at least a 50 percent margin over the all-India weighted average cost of production (A2+FL). Statement 2 is incorrect because the CACP only recommends the prices; the Cabinet Committee on Economic Affairs (CCEA) gives the final approval.

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