Question

Consider the following statements regarding agricultural marketing in India:

1. The APMC Act aimed to ensure fair trade practices and prevent exploitation of farmers by intermediaries.
2. Minimum Support Price (MSP) is announced by the government for all agricultural commodities.
3. Farmer Producer Organisations (FPOs) are intended to enhance the bargaining power of small and marginal farmers.

Which of the statements given above is/are correct?

  1. 1 only
  2. 1 and 3 only
  3. 2 and 3 only
  4. 1, 2 and 3

Answer:

Option B: 1 and 3 only

Detailed Solution:

The correct answer is “1 and 3 only”.

Statement 1 is correct as the APMC Act's primary goal was to regulate agricultural markets and protect farmers. Statement 3 is also correct as FPOs aim to aggregate farmers and improve their market access and bargaining power. Statement 2 is incorrect; MSP is not announced for *all* agricultural commodities but for a selected list.