UPSC Prelims 2001 · General Studies
Question 33: Economy and Social Development
The prices at which the Government purchases food grains for maintaining the public distribution system and for building up buffer stocks is known as
AnswerThe answer is (b).
Procurement prices are what the government pays farmers when it buys foodgrains for the public distribution system and for buffer stocks. The minimum support price is the floor announced to guarantee farmers a return, while the procurement price is the price actually paid in purchases. Issue prices are what the government charges consumers at PDS shops, and ceiling prices are legal maximum prices for market sales.
Why each option is right or wrong
- (a) MSP is the floor price announced to protect farmers, not the price for PDS purchase as such.
- (b) Right: the price paid in government purchases for PDS and buffer stocks.
- (c) Issue prices are what consumers pay at PDS shops.
- (d) Ceiling prices are legal maximum prices, not purchase prices.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2001, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.