There have been certain anomalies in India’s food management under the PDS which need immediate attention :
- 1. The percentage distribution of the economic cost of wheat and rice has been rising fast. The pooled cost of food grains accounts for two-thirds of the economic cost of wheat and rice. This has made the economic cost of food grains to the Food Corporation of India increase over the years.
- 2. Increasing costs of labour, fertilizers, pesticides and other inputs have made production of crops costlier over the time. This forced the Government to keep on increasing the MSPs of the crops, too.
Select the correct answer using the code given below :
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC SO-Steno – 2018
Statement 2 is correct. The increasing cost of agricultural inputs like labour, fertilizers, pesticides, seeds, and machinery directly raises the cost of cultivation for farmers. To ensure farming remains remunerative and to incentivize production, the government is compelled to periodically increase the MSPs for various crops. This increase in MSPs significantly contributes to the higher procurement cost for the Food Corporation of India (FCI), which is a major component of the economic cost of food grains under PDS.
Given the clear validity of statement 2 and the questionable phrasing and accuracy of statement 1’s causal link, only statement 2 represents a correctly stated anomaly/challenge and its reason.