Which of the following statement s is are true about the Price Deficiency Payment System 1 Under Pri...........

Economic Affairs Agricultural Marketing and Prices

Which of the following statement/s is/are true about the 'Price Deficiency Payment' System?

1. Under Price Deficiency Payment, farmers will be compensated for the difference between the MSPs for select crops and their actual market prices.

2. This will increase the need for the government to procure food crops, transport and store them, and then dispose them under PDS.

3. It will increase India's agriculture/food subsidy bill.

Select the correct answer using codes given below

1 and 2 only

2 and 3 only

1 only

All of the above

1 only

It entails the government not physically purchasing or stocking any crop, and simply paying farmers the difference between the market price and MSP, if the former is lower.
Such payment would be on the quantity of crop they sell to the private trade.

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