1. Minimum Support Price 

2. Government’s trading 

3. Government’s stockpiling 

4. Consumer subsidies 

Select the correct answer using the code given below. 

(a) 1, 2 and 4 only 

(b) 1, 3 and 4 only 

(c) 2 and 3 only 

(d) 1, 2, 3 and 4 

Answer: d

Explanation:

The price of any commodity depends on the input cost and the market conditions like demand and supply. 

MInimum Support Price (MSP) affects the price of the rice. An increase in MSP will automatically lead to increase in the prices because one of the parameters for MSP is input cost.

Government trading companies like MMTC export rice. This causes fluctuations in demand and supply, same is the case with government stockpiling the food grains for long term food secuirty affects the supply of rice.

Consumer subsidies in the form of Public distribution system PDS rice affects the demand side which influences price of rice in the market.

Hence, option d is correct.

Read: Solved Economy PYQs With Explanation 2020 UPSC Prelims