AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
The government announces Minimum Support Price (MSP) to check the exploitation of farmers by speculators and middlemen. Farmers often sell their produce at very low prices after harvest due to financial pressures. MSP guarantees a remunerative price, ensuring fair income and encouraging farmers to invest in production, thereby contributing to agricultural stability.
Source: Technological and Institutional Reforms, Chapter 4
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The textbook directly states that the government announces "minimum support price, remunerative and procurement prices for important crops to check the exploitation of farmers by speculators and middlemen." Use this exact phrase — examiners look for it. For 2 marks, cover (1) the reason/necessity and (2) whose interests it guards against. Mentioning agricultural stability as an outcome rounds off the answer.