Which of the following factors/policies were affecting the price of rice in India in the recent past?1. Minimum Support Price2. Government’s trading3. Government’s stockpiling4. Consumer subsidiesSelect the correct answer using the code given below.
✓ Correct answer: d) 1, 2, 3 and 4
ExplanationFactors/Policies affecting the Price of Rice in recent past are :Minimum Support Price : MSP is a type of market intervention that the government uses to protect farmers against a sudden drop in farm prices.Rice is included in MSP and thus the government announces MSP for rice, ensuring farmers receive a minimum price for their produce.A high MSP leads to increased procurement costs and can push up market prices.Government Trading : The government imports or exports rice through agencies like the Food Corporation of India (FCI).Restrictions or encouragement in exports/imports can affect domestic rice prices.Government’s Stockpiling : The government maintains buffer stocks under the Public Distribution System (PDS) and food security programs.Large stockpiling can reduce market supply, influencing prices.Consumer Subsidies : The government provides subsidized rice through schemes like the National Food Security Act (NFSA) and PDS.While subsidies help consumers, they can distort market demand and affect pricing trends.36
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