Question

The reason for increase in price of food grain distributed through public distribution system is to:

  1. Allow farmers to receive remunerative prices
  2. To control the consumption of food grain
  3. Lessen the burden of subsidy involved in scheme
  4. Earn profit out of scheme

Answer:

Option C: Lessen the burden of subsidy involved in scheme

Detailed Solution:

The correct answer is “Lessen the burden of subsidy involved in scheme”.

The government provides food grains at subsidized rates to the poor through the PDS. By increasing the prices, the government aims to reduce the financial burden of this subsidy.