Official Answer Key & Detailed Solution
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Correct Answer: Option (D) — 1, 2, 3 and 4
Concept & Option Breakdown
Standard Reference VerifiedAll four factors influence the domestic price of rice in India:
- Minimum Support Price (MSP): Acts as a floor price and influences open market procurement costs.
- Government's trading: Import/export policies and FCI operations directly alter domestic supply and demand dynamics.
- Government's stockpiling: Maintaining buffer stocks for PDS and food security absorbs market supply, affecting price levels.
- Consumer subsidies: Schemes like NFSA and OMSS distribute grain at subsidised rates, modulating open-market consumer demand.
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