Which of the following factors/policies were affecting the price of rice in India in the recent past ?
- 1.Minimum Support Price
- 2.Government's trading
- 3.Government's stockpiling
- 4.Consumer subsidies
Select the correct answer using the code given below :
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Answer: D. Rice prices in India are shaped by MSP (floor price), government trading (procurement and open market sales), government stockpiling in FCI godowns, and consumer subsidies through the public distribution system. So all four.
Watch for: Students leave out consumer subsidies, but cheap PDS rice lowers demand in the open market.
Why the other options are wrong
- A. Wrong because stockpiling by FCI also affects prices.
- B. Wrong because government trading also affects prices.
- C. Wrong because MSP and consumer subsidies also affect prices.
Source to check: Economic Survey 2019-20, Chapter 'Thalinomics' and food management; Food Corporation of India (fci.gov.in)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.