Q. “The price at which the government allows off take of food grains from the FCI” is known as?

[A] Minimum support price

[B] Fair Remunerative Prices

[C] Issue price

[D] Both A & B

Answer: C
Notes:

Explanation: Issue price: The price at which the government allows off take of food grains from the FCI (the price at which the FCI sells its food grains). The FCI has been fetching huge losses in the form of food subsidies.

  • The food grains procured are transported to the godowns of the FCI located across the country (counted in the buffer stock).
  • From here they head to the sale counters—to the TPDS or Open Market Sale.
  • The transportation, godowning, the cost of maintaining the FCI, carriage losses, etc., make the food grains costlier (the additional expenses other than the MSP are known as the ‘economic cost of food grains’).
  • To make the food grains affordable to the consumers, the issue prices for food grains are set lower than the total cost of procurement and distribution— the gap converts into the ‘food subsidy’.

Source: TMH Ramesh Singh