3
Question
FCI purchases and stores foodgrains and distributes it in deficit areas at a price less than the market price known as
FCI purchases and stores foodgrains and distributes it in deficit areas at a price less than the market price known as
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Solution
The correct option is A Minimum support price
Minimum Support
Price: The Food Corporation of India (FCI) purchases
wheat and rice from the farmers in states where there is surplus production.
The farmers are paid a pre-announced price for their crops. This price is
called Minimum Support Price (MSP). The MSP is declared by the government every
year before the sowing season to provide incentives to the farmers for raising
the production of these crops.
The FCI purchases foodgrains from the
farmers in states with surplus food production and stores it in
granaries.
This is done to distribute foodgrains in the deficit
areas and among the poor state of society at a price lower than the market price which is also known as issue price.
Hence, option ‘a’ is
correct answer.
Minimum Support Price: The Food Corporation of India (FCI) purchases wheat and rice from the farmers in states where there is surplus production. The farmers are paid a pre-announced price for their crops. This price is called Minimum Support Price (MSP). The MSP is declared by the government every year before the sowing season to provide incentives to the farmers for raising the production of these crops.
The FCI purchases foodgrains from the farmers in states with surplus food production and stores it in granaries.
This is done to distribute foodgrains in the deficit areas and among the poor state of society at a price lower than the market price which is also known as issue price.
Hence, option ‘a’ is correct answer.
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