Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Rural Development

Question:

The aim of the instruments like MSP, buffer stock etc that were initiated by Government after independence  to improve the agricultural marketing aspect was :

Options:

To increase income inequalities

To increase the national income

Providing the food grains at a subsidised price to the poor

Providing the food grains at a higher price

Correct Answer:

Providing the food grains at a subsidised price to the poor

Explanation:

The correct answer is option (30 : Providing the food grains at a subsidised price to the poor

The government used 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, to improve agricultural marketing. These instruments are aimed at protecting the income of the farmers and providing foodgrains at a subsidised rate to the poor.