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:

(a) 1,2 and 4 only

(b) 1,3 and 4 only

(c) 2 and 3 only

(d) 1,2, 3 and 4

Answer 1

Correct option is (d) 1,2, 3 and 4

• Prima facie all of these activities will affect the price of rice in India but just to cross check with authentic sources: refer to 
• "Prices of rice and wheat remained stable since 2014 due to adequate supply and also due to maintenance of adequate buffer stock of rice and wheat (by FCI)" So, #3 is correct. So Option a eliminated. 
• "Sale of wheat and rice is undertaken through Open Market Sale Scheme (OMSS) so as to check inflationary trend in prices of foodgrains". So, #2 is also correct. So Option b eliminated.
•  The National Food Security Act provides subsidized rice at 3 per kg to the poor families. So, #4 is correct. 
• There is only one option where 2, 3 and 4 are given together- Option d.