Which of the following factors/policies were affecting the price of rice in India in the recent past? 1) Minimum Support Price 2) Government’s trading 3) Government’s stockpiling 4) Consumer subsidies Select the correct answer using the code given below:

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CollectorBabu · Accepted Answer

Correct Answer: 1, 2, 3 and 4. Explanation The price of rice is affected by the following factors impacting its demand and supply in market: ● Minimum Support Price – Rice is one of the most procured crops under the MSP regime. The MSP regime sets a floor price for rice in markets and if price falls below this farmers can then sell to the government.It also  Consititution farmers to produce more rice thereby increasing demand. ● Government Trading – Government does trading in cereals like rice, wheat by conducting Open Market Sale Scheme (OMSS). This enhances the supply in market and thereby impacts the price. ● Government Stockpiling – Government maintains a buffer stock of food grains for emergency situations. This creates more demand for rice in the markets thereby increasing its price. Consumer Subsidies – Government subsidies rice under the national food security act by providing rice at subsidized prices to the poorer sections of the society. This leads lesser price for consumers.

Which of the following factors/policies were affecting the price of rice in India in the recent past? 1) Minimum Support Price 2) Government’s trading 3) Government’s stockpiling 4) Consumer subsidies Select the correct answer using the code given below:

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