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Consider the following statements.
- All food grain procurement operations in India are undertaken by the Food Corporation of India (FCI).
- Food Corporation of India (FCI) decides the issue prices of food grains.
Which of the above statements is/are incorrect?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements. All food grain procurement operatio...
Incorrect Statements:
1) All food grain procurement operations in India are undertaken by the Food Corporation of India (FCI).
2) Food Corporation of India (FCI) decides the issue prices of food grains.
Explanation:
1. Food Grain Procurement Operations in India:
The statement that all food grain procurement operations in India are undertaken by the Food Corporation of India (FCI) is incorrect. While the FCI is a major agency involved in food grain procurement, it is not the sole agency responsible for all procurement operations in the country. State government agencies and cooperative societies also play a significant role in the procurement of food grains. These agencies, along with the FCI, participate in the Minimum Support Price (MSP) operations to procure food grains from farmers.
2. Determination of Issue Prices:
The statement that the Food Corporation of India (FCI) decides the issue prices of food grains is incorrect. The FCI does not have the authority to independently determine the issue prices of food grains. The issue prices are determined by the Government of India based on various factors such as procurement costs, storage costs, transportation costs, and other related expenses. The government takes into account the recommendations of the Commission for Agricultural Costs and Prices (CACP) while deciding the issue prices. The CACP is an autonomous body that advises the government on MSPs and other related agricultural issues.
Correct Statements:
None of the statements provided are correct. Both statement 1 and statement 2 are incorrect.
In conclusion, neither statement 1 nor statement 2 is correct. While the Food Corporation of India (FCI) is a major agency involved in food grain procurement in India, it is not the sole agency responsible for all procurement operations. Additionally, the FCI does not independently decide the issue prices of food grains. The issue prices are determined by the Government of India based on various factors and the recommendations of the Commission for Agricultural Costs and Prices.
1) All food grain procurement operations in India are undertaken by the Food Corporation of India (FCI).
2) Food Corporation of India (FCI) decides the issue prices of food grains.
Explanation:
1. Food Grain Procurement Operations in India:
The statement that all food grain procurement operations in India are undertaken by the Food Corporation of India (FCI) is incorrect. While the FCI is a major agency involved in food grain procurement, it is not the sole agency responsible for all procurement operations in the country. State government agencies and cooperative societies also play a significant role in the procurement of food grains. These agencies, along with the FCI, participate in the Minimum Support Price (MSP) operations to procure food grains from farmers.
2. Determination of Issue Prices:
The statement that the Food Corporation of India (FCI) decides the issue prices of food grains is incorrect. The FCI does not have the authority to independently determine the issue prices of food grains. The issue prices are determined by the Government of India based on various factors such as procurement costs, storage costs, transportation costs, and other related expenses. The government takes into account the recommendations of the Commission for Agricultural Costs and Prices (CACP) while deciding the issue prices. The CACP is an autonomous body that advises the government on MSPs and other related agricultural issues.
Correct Statements:
None of the statements provided are correct. Both statement 1 and statement 2 are incorrect.
In conclusion, neither statement 1 nor statement 2 is correct. While the Food Corporation of India (FCI) is a major agency involved in food grain procurement in India, it is not the sole agency responsible for all procurement operations. Additionally, the FCI does not independently decide the issue prices of food grains. The issue prices are determined by the Government of India based on various factors and the recommendations of the Commission for Agricultural Costs and Prices.
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Community Answer
Consider the following statements. All food grain procurement operatio...
- FCI is the nodal central agency of Government of India. FCI, along with other state agencies takes up the procurement of Wheat and Paddy. This is done under the Price Support Scheme.
- Apart from these two, Coarse grains (Jowar, Bajra etc.) are also procured. This is taken by the State Government agencies as per the directions issued by Government of India.
- FCI procures the food grains. It does not decide the issue price. Commission of Agricultural Costs and Prices (CACP) only recommends prices to the Cabinet Committee on Economic Affairs (CCEA). It is the Cabinet Committee on Economic Affairs (CCEA) which finally decides the issue price.
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Consider the following statements. All food grain procurement operations in India are undertaken by the Food Corporation of India (FCI). Food Corporation of India (FCI) decides the issue prices of food grains.Which of the above statements is/are incorrect?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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