What is the "Objective" of the policy instruments (MSP, PDS etc.) used by the government?
Answer & explanation
Correct answer: option 3
The correct answer is option 3: Both 1 and 2
The policy instruments like Minimum Support Price (MSP) and Public Distribution System (PDS) used by the government have the following objectives:
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Protecting the income of farmers: MSP ensures that farmers receive a guaranteed price for their produce, protecting them from price fluctuations and ensuring a stable income.
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Providing food grains at a subsidised rate to the poor: PDS helps in distributing essential food grains at subsidized prices to low-income and vulnerable populations, ensuring food security.