Question

India has produced 70,00,000 kg of foodgrains this year. The amount of goods imported are 3,00,000 kg and exported are 2,00,000 kg. The opening stock at the beginning of the year is 30,000 kg and closing stock at the end of the year is 1,00,000 kg of the grains at state granaries. Calculate how much food is available in the country in a year?

• A. 70,00,000 kg
• B. 70,10,000 kg
• C. 70,20,000 kg
• D. 70,30,000 kg

Answer 1

The correct option is D 70,30,000 kg

Net Imports
= Amount of imported goods - Amount of exported goods
= 3,00,000 kg - 2,00,000 kg
= 1,00,000 kg

Change in government stocks
= Closing stock at the end of the year - Opening stock at the beginning of the year
= 1,00,000 kg - 30,000 kg
= 70,000 kg

Availability of foodgrains per year
= Foodgrains produced per year + Net imports - Change in government stocks
= 70,00,000 kg + 1,00,000 kg - 70,000 kg
= 70,30,000 kg