UPSC Prelims 2004 Q77: Indian Economy – Agriculture & Rural Development
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?
- (a) 1 and 2
- (b) 2 only
- (c) 1 and 3
- (d) 3 only
Answer: (d) 3 only
Explanation
Food grain procurement, MSP and TPDS
| Statement | Verdict |
|---|---|
| 1. Procurement target, not open-ended procurement | False: wheat and rice follow an open-ended procurement policy at MSP |
| 2. MSP announced only for cereals | False: MSP is also announced for pulses, oilseeds, cotton, sugarcane and others |
| 3. Wheat and rice issued at uniform central issue prices under TPDS | True |
Only statement 3 is correct.
Answer: (d) 3 only.
Why each option is right or wrong
- (a) Incorrect. Statements 1 and 2 are both false.
- (b) Incorrect. MSP is not announced only for cereals.
- (c) Incorrect. Statement 1 is false.
- (d) CORRECT. Only statement 3 is correct.
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
- Believing procurement is target-based for wheat and rice.
- Thinking MSP covers only cereals.
- Forgetting the uniform central issue price.
Exam tip
CACP recommends MSP for about two dozen commodities.
Sources
- Ministry of Consumer Affairs, Food and Public Distribution — TPDS
- Commission for Agricultural Costs and Prices — Price Policy for Kharif Crops of 2004–05 Season