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Indian Economy - Understanding the basics of Indian economic system

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    Direction: In the following passage seven blanks have been given. For each blank, a number of phrases have been suggested, one of which is the correct one for that blank grammatically and contextually. Select the answer for each and mark that as your answer.
     

    With the decades-old minimum support price (MSP) system __________ A __________ the crisis at the farm gate, the three schemes that are a part of AASHA – the Price Support Scheme (PSS) itself, the Price Deficiency Payment Scheme (PDPS) and the Pilot of Private Procurement and Stockist Scheme (PPPS) – point to an innovative, MSP-plus approach to the problem of non-remunerative prices. Under the PDPS, the Centre __________ B __________ to pay oilseed farmers the difference between the MSP and market price. The advantage of this scheme is that the Centre can keep the farmer satisfied without having to go through the hassle of physical procurement, storage and disposal. Freed of these logistical hassles, the geographical reach and coverage of PDPS is likely __________ C __________. The PSS, or expanded MSP, will allow the FCI to procure pulses, oilseeds and copra from States that display interest. The PPPS is a new idea. __________ D __________, the Centre will persuade States to bring in private players to procure at MSP. It promises a maximum of 15 per cent of MSP as a service charge to the private player to compensate for the loss. In all these schemes however, the key will be the implementation; failure to create a system of checks and balances can derail them. For instance, the experience of Madhya Pradesh which implemented the PDPS under the Bhavantar Bhugtan Yojana last year, shows that it __________ E __________. Ground level checks reveal that traders connive with each other and depress prices at mandis. They force farmers to sell at lower prices and pocket the compensation from the government. Many small and marginal farmers __________ F __________ to sell their produce under the Bhavantar scheme, face a double whammy of lowered price and no compensation. The PSS would be easier to implement, with nodal agencies doing the procurement. However, the Centre __________ G __________to provide funds. With the additional Rs.16,550 crore guarantee for raising working capital from banks now being made available, the total credit guarantee given to institutions under PSS is already Rs.45,550 crore. But if all States apply to NAFED/FCI for procurement of oilseeds or pulses, the agencies will fall short of funds.


    A.

    Fragmentation of yield

    Incorrect Answer

    Failing to address

    Correct Answer

    Understanding to ratify

    Incorrect Answer

    Interested in developing

    Incorrect Answer

    None of the above

    Incorrect Answer
    Explanation:

    Correct Answer is (b).From the given context, it is clear that the age-old Minimum Support Prices scheme was not enough to address the problems of the farmers in the country. That is why, the government has decided to announced the new schemes so that they can address the issues faced by the farmers in the country.
    Coming to the given options, option A is not correct since it is not relevant to the given context and the same can be commented about the options C and D, which are also out of context for the given blank. Hence, these options can be eliminated easily. Option B correctly explains the perception regarding the MSP scheme of the government.
    This makes option B the correct choice among the given options.


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