UPSC Prelims 2001·GS1·economy·economic sectors and 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

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Last updated 23 May 2026, 3:31 pm IST
  1. Aminimum support pricesCorrect
  2. Bprocurement prices
  3. Cissue prices
  4. Dceiling prices

Explanation

The correct answer is minimum support price because it is the guaranteed price at which the government offers to buy food grains from farmers. These purchases are specifically intended to provide price stability to farmers while simultaneously allowing the government to procure stocks for the public distribution system and maintain buffer reserves. While procurement prices were historically different and announced after harvests, the government now effectively uses the minimum support price as the primary rate for these activities. Issue prices refer to the discounted rates at which grains are sold to consumers through ration shops, and ceiling prices are legal maximum limits set to prevent overpricing, making them irrelevant to government purchasing.
economy: The prices at which the Government purchases food grains for maintaining the public distribution system and for building
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