📈 EconomyUPSC 2004Fundamentals of Economy

Consider the following statements:1. Regarding the procurement of food-grains, the Government of India follows a procurement target rather than an open–ended procurement policy.2. Government of India announces minimum support prices only for cereals.3. For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform central issue prices to the States/Union Territories.Which of the statements given above is/are correct ?

a1 and 2
b2 only
c1 and 3
d3 only
✓ Correct answer: c) 1 and 3
ExplanationStatement 1 is correct : The government sets specif- ic procurement targets for each crop season based on factors like estimated production, buffer stock requirements and market conditions.In case, there is no procurement target, the government allows the procurement agencies like the FCI to buy flexibly from the farmers.Statement 2 is incorrect : The Government of India announces MSP for a variety of crops, including cereals, pulses, oilseeds, and commercial crops like cotton and jute.Statement 3 is correct : Under the Targeted public Distribution System (TPDS), wheat and rice are allocated to States/Union Territories by the Government of India at uniform Central Is- sue Prices (CIP) for distribution to different categories, such as Antyodaya Anna Yojana (AAY) and Below Poverty Line (BPL) families.60

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