Question

Write about some of the measures used by the government of India to control price rise.

Answer 1

Instructions: Explain how administered price mechanisms and rationing helps in controlling price rise.

Solution:

Administered price mechanism:

• The government directly controls the price of certain commodities under an administered price mechanism.
• It fixes the price of certain essential commodities under the essential commodities act, of 1955.
• The Prevention of Anti-social Activities Act, 1985 makes hoarding, smuggling, or holding black money punishable.

Public Distribution System (PDS):

• The Public Distribution System (PDS) facilitates access to food grains and other essentials, such as, pulses, sugar, and kerosene at affordable prices.
• Rations cards are issued to qualifying households under various categories.
• It allows households to purchase provisions at a subsidised rate.​​​​​​