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UPSC Prelims 2020 · Agriculture · Farm Money
Which of the following factors/policies were affecting the price of rice in India in the recent past? Select the correct answer using the code given below:
- Minimum Support Price
- Government's trading
- Government's stockpiling
- Consumer subsidies
- (a) 1, 2 and 4 only
- (b) 1, 3 and 4 only
- (c) 2 and 3 only
- (d) 1, 2, 3 and 4
Show the answer and explanation
Answer: (d) 1, 2, 3 and 4
All four policies affect rice prices.
Statement by statement
1. ✓ YES MSP sets a floor for paddy.
2. ✓ YES Government trading (export bans, open-market sales) moves prices.
3. ✓ YES Huge FCI stocks affect market supply.
4. ✓ YES PDS subsidies change how much rice people buy in the market.
Why the others are wrong
(a) Drops stockpiling.
(b) Drops government trading.
(c) Drops MSP and consumer subsidies.
The trap
None.
🔒 Rice price levers: MSP, procurement, buffer stock, OMSS, export bans, PDS.