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 ✓ UPSC's answer
Why the answer is (d)
• Rice prices in India are shaped by a web of government interventions.
• MSP (1) sets a floor at which FCI procures paddy; government trading (2) — open-market sales, exports/import decisions and export bans — moves market supply.
• Government stockpiling (3) under buffer norms withdraws grain from the market and later releases it; consumer subsidies (4) through PDS/NFSA at ₹3/kg (now free) alter demand and market prices.
• All four factors were in play in the recent past.
• Hence 1, 2, 3 and 4, option (d).
Why the other options are wrong
- (a) 1, 2 and 4 only
- Government stockpiling also affects rice prices.
- (b) 1, 3 and 4 only
- Government trading (exports/open-market sales) also matters.
- (c) 2 and 3 only
- MSP and consumer subsidies also shape prices.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2020, held on 4 October 2020. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.