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Public Distribution System

1 UPSC Prelims MCQs tagged "Public Distribution System". Free practice with answer keys, explanations, and timed mock tests on Anantam IAS.

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  1. Food subsidy is the difference between

    Food subsidy is the difference between

    1. AMinimum Support Price (MSP) and the Central Issue Price (CIP)
    2. BEconomic Cost and the Central Issue Price (CIP)
    3. CEconomic Cost and Minimum Support Price (MSP)
    4. DFair and Remunerative Price (FRP) and Central Issue Price (CIP)
    Answer and explanation

    Correct answer: B

    The food subsidy borne by the government is the gap between the economic cost of foodgrains to the Food Corporation of India and the Central Issue Price at which grain is released under the PDS. Economic cost covers MSP plus procurement incidentals and distribution costs, so it's wider than MSP alone. That whole cost minus the lower issue price gives the subsidy.

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    Indian Economy UPSC GPSC-2026 Medium