Agricultural Marketing and Prices

Economic Affairs

Title

45:30

8 of 24 completed

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38 of 100 completed

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Indian Economy - Understanding the basics of Indian economic system

Which of the following factors/policies were affecting the price of rice in India in the recent past?

Select the correct answer using the code given below:

This questions was previously asked in

UPSC CSP Previous Year Paper (2020)

1,2 and 4 only

1,3 and 4 only

2 and 3 only

1,2, 3 and 4

Statement 1 is correct: Minimum Support Price impacts the price of rice in India. The higher MSP would also dent Indian exporters’ competitiveness in the global markets, which have turned to be a buyers’ market.
Statement 2 is correct: The government typically buys more than a third of the country's rice output at a fixed price, which also has a direct impact on prices paid by traders. With this price rise, the exports will become expensive.
Statement 3 is correct: Stockpiling usually occurs at times of an actual or expected shortage of a product or in anticipation of a price rise.
Statement 4 is correct: The impact of the consumer subsidy is to lower prices for consumers but to increase the price received by producers.

Hence option 4th is correct.