Direction Study the information carefully and answer the questions given below India a member of the...........

Logical Reasoning(IBPS PO) Statement - Conclusions

Direction: Study the information carefully and answer the questions given below.

India, a member of the WTO, is but of course bound by its agreements and conventions. Article 6 of the Agreement on Agriculture, dealing with the provision of the Minimum Support Prices (MSPs) for the agricultural products, is considered to be trade distorting. It is also subjected to various limitations, one of them being the fact that the subsidy arising from ‘minimal supports’ cannot exceed 10 per cent of the value of agricultural production

for developing countries. The PDS system in India adheres to the provision of the MSPs and is also involved in the stockholding of the food grains. It is contemplated that in the coming years the subsidy given to the producers will exceed 10 per cent of the value of agricultural production.

What is the most crucial message conveyed in the passage?

India should revise its PDS.

India should not be a member of WTO.

For India, food security collides with trade.

India provides food security to its poor.

If none of the assumptions are implicit

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Explanation:

India makes food security a major priority because of the state of hunger and malnutrition in the country. The system of PDS procures food grains from the farmers and stores them for future uses. The MSP which is paid to the farmers is more than the market price and the price at which the food grains are distributed to the consumers is lower than the market price. Now, the situation in the country is such that demands a well functioning PDS. Nevertheless, the membership of the WTO restricts India when it comes to subsidies. Thus, for India, food security and trade are closely linked.