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UPSC Prelims 2004 Q77: Indian Economy – Agriculture & Rural Development

UPSC Prelims 2004, General Studies Paper I · Indian Economy

Consider the following statements: 1. Regarding the procurement of food grains, 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 these statements given above is/are correct?
  1. (a) 1 and 2
  2. (b) 2 only
  3. (c) 1 and 3
  4. (d) 3 only

Answer: (d) 3 only

Explanation

Food grain procurement, MSP and TPDS

StatementVerdict
1. Procurement target, not open-ended procurementFalse: wheat and rice follow an open-ended procurement policy at MSP
2. MSP announced only for cerealsFalse: MSP is also announced for pulses, oilseeds, cotton, sugarcane and others
3. Wheat and rice issued at uniform central issue prices under TPDSTrue

Only statement 3 is correct.

Answer: (d) 3 only.

Why each option is right or wrong

Key point

Central issue price: uniform across States for TPDS; MSP: announced by CACP recommendation.

Remember

TPDS grains are issued at uniform central issue prices.

Common mistakes

Exam tip

CACP recommends MSP for about two dozen commodities.

Sources

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