Despite government intervention, private trade predominates agricultural markets. Three of the following are named in NCERT as carrying on this private trade. Pick the odd one out.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Food Corporation of India
Private trade in farm produce is run by moneylenders, rural political elites, big merchants and rich farmers. The Food Corporation of India is a government body that keeps buffer stocks of wheat and rice.
NCERT (2026-27): “5.4 Agricultural Market System … The fourth element is the policy instruments like (i) assurance of minimum support prices (MSP) for agricultural products (ii) maintenance of buffer stocks of wheat and rice by Food Corporation of India and (iii) distribution of food grains and sugar through PDS. These instruments are aimed at protecting the income of the farmers and providing foodgrains at a subsidised rate to the poor. However, despite government intervention, private trade (by moneylenders, rural political elites, big merchants and rich farmers) predominates agricultural markets. The need for government intervention is imminent particularly when a large share of agricultural products, is handled by the private sector. …” |