The correct option is A-4, B-1, C-3, D-2
Explanation
The terms provided relate to the government's mechanism for food security, price stabilization, and agricultural support, primarily executed through the Food Corporation of India (FCI) and the Public Distribution System (PDS).- A. Buffer Stock (Matches 4): This refers to the stock of foodgrains (primarily wheat and rice) procured by the government through the Food Corporation of India (FCI). It is maintained to ensure food security, distribute food in deficit areas, and stabilize prices during periods of shortage or calamity.
- B. Minimum Support Price (Matches 1): The Minimum Support Price (MSP) is the pre-announced price at which the government offers to purchase crops from farmers. It is declared before the sowing season to incentivize production and protect farmers against price fluctuations.
- C. Issue Price (Matches 3): This is the price at which foodgrains from the buffer stock are distributed to the population (especially the poorer sections) through the Public Distribution System (PDS). It is typically set lower than the prevailing market price.
- D. Subsidy (Matches 2): In economics, a subsidy is a benefit given to an individual, business, or institution, usually by the government. Specifically, it can be defined as a payment to a producer to supplement the market price, ensuring the producer receives a target income level while keeping prices affordable for consumers.
Key Takeaway: The government procures grains at the Minimum Support Price (MSP) to maintain a Buffer Stock, which is then distributed to beneficiaries at a subsidized Issue Price.