What is the policy measure adopted by the Government of India to improve the system of agricultural marketing?a)Public Distribution System (PDS)b)Minimum Support Price (MSP)c)Maintenance of Buffer Stockd)More than one of the abovee)None of the aboveCorrect answer is option 'D'. Can you explain this answer?

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What is the policy measure adopted by the Government of India to improve the system of agricultural marketing?

a)
Public Distribution System (PDS)
b)
Minimum Support Price (MSP)
c)
Maintenance of Buffer Stock
d)
More than one of the above
e)
None of the above

Correct answer is option 'D'. Can you explain this answer?

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What is the policy measure adopted by the Government of India to impro...

The correct answer is More than one of the above.

Key Points

Public Distribution System (PDS):

The Public distribution system (PDS) is an Indian food Security System established under the Ministry of Consumer Affairs, Food, and Public Distribution.
PDS evolved as a system of management of scarcity through the distribution of food grains at affordable prices.
It has helped stabilise food prices and make food available to the poor at affordable prices.
It maintains the buffer stock of food grains in the warehouse so that the flow of food remain active even during period of less agricultural food production.
It has helped in the redistribution of grains by supplying food from surplus regions of the country to deficient regions. Hence, option 1 is correct.

Minimum Support Price (MSP):

The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers.
MSP is a “minimum price” for any crop that the government considers as remunerative for farmers and hence deserving of “support”.
The Commission for Agricultural Costs & Prices (CACP) recommends MSPs for 22 mandated crops and fair and remunerative prices (FRP) for sugarcane. Hence, option 2 is correct.

Buffer Stock:

Buffer stocks refer to a pool of certain commodities like Rice, Wheat, etc which are maintained to provide food security and tackle unforeseen emergencies like drought, famine, wars, etc.
In India, the buffer stocks are maintained by the public sector.
The purchase of food grains from farmers at the Minimum Support Price (MSP) relieves them of the need to sell their goods at a loss and guarantees them a fair return on their investment.
To meet the objective of supplying every Indian person with sufficient food for their sustenance, or preserving food security, buffer stocks of food grains are maintained. Hence, option 3 is correct.

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Government Policy Measure to Improve Agricultural Marketing in India

Improving the system of agricultural marketing is crucial for the development of the agricultural sector in India. The Government of India has adopted various policy measures to enhance the marketing of agricultural produce. One such measure is:

More than one of the above

Explanation:

Public Distribution System (PDS):
- The Public Distribution System (PDS) is a government-led initiative to provide essential commodities at subsidized rates to the vulnerable sections of society.
- PDS helps in stabilizing prices of agricultural produce by ensuring a steady demand for them.

Minimum Support Price (MSP):
- Minimum Support Price (MSP) is the price set by the government to safeguard the interests of farmers by ensuring them a fair price for their produce.
- MSP acts as a safety net for farmers and encourages them to invest in agriculture without the fear of price fluctuations.

Maintenance of Buffer Stock:
- The government maintains a buffer stock of essential commodities like grains to stabilize prices in the market.
- Buffer stock operations help in regulating the supply of agricultural produce and prevent extreme price fluctuations.

By implementing a combination of these policy measures, the Government of India aims to improve the system of agricultural marketing, ensure fair prices for farmers, and enhance food security in the country.

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What is the policy measure adopted by the Government of India to improve the system of agricultural marketing?a)Public Distribution System (PDS)b)Minimum Support Price (MSP)c)Maintenance of Buffer Stockd)More than one of the abovee)None of the aboveCorrect answer is option 'D'. Can you explain this answer?

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