Question

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:

1. 1, 2 and 4 only
2. 1, 3 and 4 only
3. 2 and 3 only
4. 1, 2, 3 and 4

Answer 1

Correct Answer - Option 4 : 1, 2, 3 and 4

The correct answer is 1 2 3 and 4.

• The domestic factors which affect prices of rice in India are as follows-
  • The intensity of seasonal monsoon across India and production of Basmati and non-basmati rice.
  • The ratio of full and broken kernels in milling the paddy.
  • The government's trading and Minimum support price of rice- it results in the diversion of stocks from the open market hence driving up the price for the ultimate consumers. Hence 1 is correct.
  • Rice tenders by Food Corporation of India and other organizations
  • Consumer subsidies ( it lowers the prices for the ultimate consumer) Hence 3 is correct.
  • The government's stockpiling (low stock levels constraint that ability to buffer the price rise) Hence 4 is correct.
  • Climatic shocks determine rice production and prices in the short run due to increasing demand. Hence 2 is correct.

• Some international factors which affect Indian rice pricing are as follows-
  •  Global tenders for procurement of rice
  • Appreciation or depreciation of USD and Indian Rupees.
  • Crude Oil Prices

•  The Manipur black rice, called ‘Chakhao’ is the most recent addition to GI tagged rice varieties of India.
• West Bengal is the largest rice producer in India.
• In 1965, the ICAR launched the AICRIP or All India Coordinated Rice Improvement Project for R&D for improving rice production.