UPSC CSE Prelims
Question 36
Which of the following factors/policies were affecting the price of rice in India in the recent past?
- Minimum Support Price
- Government's trading
- Government's stockpiling
- Consumer subsidies
Select the correct answer using the code given below:
View correct answer and explanation
Correct answer: D
Correct Option: D (1, 2, 3 & 4)
Explanation: Indian rice prices respond to MSP procurement signals, government trade decisions, buffer-stock releases/accumulation and subsidised distribution; these all affect demand, supply or expectations.
Statement / Pair / Item-wise Analysis:
1. Correct - MSP shapes farmer incentives and procurement floor expectations.
2. Correct - Government imports, exports and market sales alter market availability.
3. Correct - Buffer stocking withdraws or releases grain, affecting price conditions.
4. Correct - Consumer subsidies influence effective demand and the public-distribution market.
Option-wise Analysis:
A. Incorrect-omits correct item 3 (Buffer stocking withdraws or releases grain, affecting price conditions).
B. Incorrect-omits correct item 2 (Government imports, exports and market sales alter market availability).
C. Incorrect-omits correct item 1 (MSP shapes farmer incentives and procurement floor expectations); omits correct item 4 (Consumer subsidies influence effective demand and the public-distribution market).
D. Correct-includes all and only valid statements/items 1, 2, 3, 4.