Question

Public procurement of food grains at support prices ensures the following :
(A) Stability in farm prices
(B) Remunerative prices to the farmers
(C) Building food stocks for public distribution
Which of the above statements are correct?
1. (A) and (B)
2. (B) and (C)
3. (A), (B) and (C)
4. only (C)

Answer 1

Correct Answer - Option 3 : (A), (B) and (C)

The correct answer is (A), (B) and (C).

• Public procurement of food grains at support prices ensures:
  • Stability in farm prices
  • Remunerative prices to the farmers
  • Building food stocks for public distribution

 

• FCI procures food grains to ensure that effective market intervention is in place to keep the prices under check and also to ensure the country's food security.
• It also ensures effective market intervention thereby keeping the prices under check and also adding to the overall food security of the country.
• FCI, the nodal central agency of the Government of India, along with other State Agencies undertakes procurement of wheat and paddy under a price support scheme.
• The Central Government extends price support for paddy, coarse grains, and wheat through the FCI and State Agencies.
• All the food grains conforming to the prescribed specification offered for sale at specified centers are bought by the public procurement agencies at the Minimum Support Price (MSP).