The correct option is 1 and 2 only.
Explanation
Government intervention in agricultural marketing aims to regulate markets to ensure fair prices for farmers (producers) and affordable food for consumers. In India, this is achieved through a mix of price assurance, procurement, and distribution mechanisms within a mixed economy framework.
Statement 1 is Correct:
Assurance of Minimum Support Prices (MSP) is a fundamental policy instrument. The government announces MSPs for varying crops to guarantee a minimum price to farmers, thereby protecting them from sharp falls in market prices and incentivizing production.
Statement 2 is Correct:
The Food Corporation of India (FCI) procures food grains (primarily wheat and rice) to maintain buffer stocks. These stocks serve two main purposes: ensuring national food security during shortages and stabilizing prices in the market.
Statement 3 is Incorrect:
The Public Distribution System (PDS) was not abolished. It continues to function as a crucial mechanism for distributing essential commodities (like wheat, rice, kerosene) to the poor at subsidized rates. It operates alongside the free market to ensure food security for vulnerable sections.
Statement 4 is Incorrect:
There is no blanket ban on private trade in agricultural commodities. Private traders, wholesalers, and retailers actively participate in the agricultural market. The government intervenes only to support prices or distribute subsidized food, but it does not monopolize the entire trade.
Key Takeaway:
The three pillars of India's food policy and agricultural marketing intervention are MSP (price protection for farmers), Buffer Stocks (storage by FCI), and PDS (subsidized distribution to consumers). Private trade co-exists with these government mechanisms.