Food Security In India - Class 9 Economics - Extra Questions

Define Buffer Stock

A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target range (or price level).



Give examples of food insecure states in India.

The economically backward states with high rate of poverty, tribal and remote areas, regions prone to natural disasters etc. are more food insecure in India. The states of Uttar Pradesh (eastern and south-eastern parts), Bihar, Jharkhand, Orissa, West Bengal, Chattisgarh, parts of Madhya Pradesh and Maharashtra account for the largest number of food insecure in India.


Explain the two flaws in PDS in India.

The PDS in India has been criticised on various counts. The main criticisms are as follows:

  1. Limited Benefit to Poor from PDS: Many empirical studies have shown that the rural poor have not benefited much from the PDS as their dependence on the open market has been much higher than on the PDS for most of the commodities. 
  2. Regional Disparities in PDS Benefits: There are considerable regional disparities in the distribution of PDS benefits. For example, in 1995, the four Southern States of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu accounted for almost one-half (48.7 per cent) of total PDS offtake of foodgrains in the country while their share in all India population below the poverty line in 1993-94 was just 18.4 per cent. As against this, the four Northern States of Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh and Odisha (or BIMARU States) having as much as 47.6 per cent of the all - India population below the poverty line in 1993-94 accounted for just 10.4 per cent of all India off take of foodgrains from PDS in 1995.


Discuss the main components of the food security system.

The main two components are:
  • Buffer stock scheme: A buffer stock scheme (commonly implemented as intervention storage, the "ever-normal granary") is an attempt to use commodity storage for the purposes of stabilising prices in an entire economy or, more commonly, an individual (commodity) market. Specifically, commodities are bought when there is a surplus in the economy, stored, and are then sold from these stores when there are economic shortages in the economy.
  • PDS system:
    Public distribution system (PDS) is an Indian food security system. This scheme was launched in India on June 1997. Major commodities distributed include staple food grains, such as wheat, rice, sugar, and kerosene, through a network of fair price shops (also known as ration shops). 


What are the objectives behind announcing minimum support prices by the Government?

Minimum Support Price (MSP) is a form of market intervention by the Government of India to ensure agricultural producers against any sharp fall in farm prices. The MSPs are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). MSP is price fixed by Government of India to protect the producer - farmers - against excessive fall in prices during bumper production years. The MSP is a guarantee price for their produce. The major objectives are to support the farmers from distress sales and to procure food grains for public distribution. In case the market price for the commodity falls below the announced MSP due to bumper production and glut in the market, govt. agencies purchase the entire quantity offered by the farmers at the announced minimum price.



Do you believe that green revolution has made India self-sufficient in food grains? How?

Yes, the green revolution has made India self-sufficient in food grains. India has adopted a new strategy in the field of agriculture. In this, insecticides and pesticides were used which resulted in great production of wheat and rice. Due to green revolution, the highest rate of growth was achieved in Punjab and Haryana in 1964-65.


Which states are more food insecure in India?

The economically backward states with high rate of poverty are more food insecure in India.
The states of Uttar Pradesh, Bihar, Jharkhand, Orissa, West Bengal, Chattisgarh, Madhya Pradesh and Maharashtra account for the largest number of food insecure in India.


What is food security? Explain various measures taken by the government.

The term 'food security' means that everybody is able to get enough healthy food to be well and active. For everybody to get enough healthy food, we need a food system that works well. Various measures taken by the government are as follow:

Technology Measures

Introducing technology in agriculture was an initiation taken by the Government to meet the growing demand of agricultural production. The measures taken to improve food production were expanding irrigation facility, water management, advance usage of high yielding variety of seeds and protection of crops through the usage of fertilisers and pesticides. These facilities were provided on a large scale to farmers. Through this, land unfit for cultivation was also made fit. This has made our country independent, and we have turned from a larger importer of food grains to a larger exporter.

Nationalisation

Banks have always paid attention to the increasing demand of agriculture. To centralise the needs of agricultural reforms, a National Bank for Agriculture and Rural Development (NABARD) was set up in 1982, which worked on expanding the credit facility to farmers. NABARD looks after the development of the cottage industry, small industry, village industry and other rural industries. It also finances the needs of the rural sector and monitors the development of the rural economy.   

Support Prices

Another important measure is the announcement of support prices to ensure fair returns to farmers. This policy was passed so that even if the production was high, farmers should not suffer because of price cut. If the supply increases, the demand decreases; it means the price tumbles if the supply is adequate. This policy was necessary to ensure that farmers are not penalised for producing more. In fact, this policy was introduced to provide incentive to farmers for high production. 

Food Security System

The Government of India had built a food security system in the form of the Public Distribution System (PDS). PDS does not mean that food will be available at cheaper cost. It means that it will work as a ‘safety net’ to maintain larger stocks of food grains. This was done in a bid to combat any shortages or shortfalls which might occur in the coming years because of natural disaster or during emergency.

Rural Employment Programmes

PDS was not very effective for the poor who did not have adequate amount of money to buy facilities available. Thus, the government planned various programmes particularly for poor farmers such as Small Farmers Development Agency (SFDA), Marginal Farmers and Agricultural Labour Development Agency (MFALDA), National Rural Employment Programme (NREP), Rural Landless Employment Guarantee Programme (RLEGP), Integrated Rural Development Programme (IRDP), Jawahar Rozgar Yojana (JRY) and Employment Assurance Scheme (EAS).



How is food security ensured in India?

Food security is ensured in India by:
  1. Creation of buffer stock.
  2. Introduction of the Public Distribution System(PDS).
  3. Running other programs like mid-day mill program, integrated child development services, etc.


Who are the people more prone to food insecurity?

A large group of people suffer from food and nutrition insecurity in India. The most affected groups are as follows : 
- People belonging to the backward sections of the society like SCs, STs and OBCs etc.
- People employed in ill-paid occupations.
- Landless labourers, traditional artisans, self employed workers etc.
- People belonging to the economically backward states with high poverty, remote and distant areas, regions prone to natural disaster.
- People migrated to other regions in search of work.
- A large population of pregnant and nursing mothers and children under the age of 5 years.
Thus, these are groups of people more prone to food insecurity.


What happens to the supply of food when there is a disaster or a calamity?

When there is a disaster or any calamity the production of food grains decreases in the affected area. This in turn creates a shortage of food in the affected area. The prices of goods go up due to the shortage of food which in turn affects the purchasing power of the people. When there is any calamity in a widespread area or is for a very long period of time, it may cause a situation of starvation. A massive starvation might take a turn of famine. 
A famine is characterised by widespread deaths due to starvation and epidemics caused by forced use of contaminated water or decaying food and loss of body resistance due to weakening from starvation.


A section of people in India are still without food. Explain?

Despite large increase in the food grain production we find people without food in India. Poor people suffer from chronic hunger. Chronic hunger is a persistent inadequacy in diet in terms of quality and/or quantity. Poor people suffer from chronic hunger because of their very low income and in turn inability to buy food even for survival. Over one-fifth of the country's population still suffer from chronic hunger.


Differentiate between seasonal hunger and chronic hunger?

Seasonal hunger is the hunger that cycles around the harvest and sowing season of seasonal activities like agriculture. Seasonal hunger is found in rural areas in some cases and in urban areas also. This type of hunger exists when a person is unable to get work for the entire year.
Chronic hunger is the hunger that results due to diets persistently inadequate in the quality and/or quantity. Chronic hunger is found generally in urban areas. Poor people suffer from chronic hunger because of their low income and in turn inability to buy food even for survival.


Explain the different categories of rural and urban people who are most prove to food insecurity.

The WHO states that there are three pillars that determine food security: food availability, food access, and food use and misuse. 

Chronic food insecurity: A long-term and persistent condition of food insecurity. Low and irregular incomes are the root cause of urban food insecurity, but inadequate housing and basic infrastructure and limited access to services contribute to levels of malnutrition and food insecurity that are often as high if not higher than in rural areas. 

Transitory food insecurity: A short-term and temporary condition of food insecurity.

 



Give a note on the role of co-operatives in food distribution system.


Cooperative societies in India are playing a significant role in ensuring food security and are more active in western and southern regions of the country. In Tamil Nadu, around 94% of all fair price shops run under the Public Distribution System are managed by cooperatives.
Mother Dairy is a cooperative that sells milk and vegetables at fixed rates decided by the Delhi government.
Anand Milk Union Limited (Amul) is one of the most successful cooperatives in India. Amul gave a tremendous boost to milk production leading to the white revolution in India. Amul not only encourages dairy farming, but also provides a variety of milk products to consumers all over the country.
The Academy of Development Studies in Maharashtra is a society devoted to welfare of tribals and rural communities. ADS has set up grain banks in tribal and rural areas with the help of local NGOs to food security.
A grain bank functions like a normal bank. The members can make deposits of surplus grain after harvest and make withdrawals during lean periods. Grain bank members can also take loans in the form of grain and repay the loans with interest at the time of the next harvest.


Why buffer stock is created by the government?

The government creates buffer stock of food grains to protect the interest of both farmers as well as consumers. Farmers interest is protected when they are assured to get a certain minimum price for their crops. This price is called 'Minimum Support Price'. The interest of the consumers are protected when the procured food is made available to the consumers at the subsidized rates.
A buffer stock help resolve the problem of shortage of food during the adverse weather conditions or during calamities.


Write notes on: Minimum Support Price.

Minimum Support Price (MSP) -
1:This is the pre-announced price at which the government purchases food grains particularly, wheat and rice from the farmers in order to create a buffer stock. 

2:This price is announced by the government every year before the sowing season to give incentive to the farmers to raise the production of the desired crop. 

3:The rising MSPs have raised the maintenance cost of procuring food grains by the government as well as induced farmers to divert land from production of coarse grains to the production of these crops.



What are the problems with the functioning of ration shops?

There are various problems with the functioning of ration shops such as;

  • Ration cards are issued only to those people who have their proper residential addresses. Hence a large number of homeless poor fail to get ration from these shops.
  • The owners of these shops sell ration in the open market at higher prices.
  • Sometimes shopkeepers make bogus entries in the ration cards.


Write a note on the role of cooperatives in providing food and related items.

The cooperatives are playing an important role in food security in India, especially in the southern and western parts of the country. The cooperative societies set up shops to sell goods to the poor people at lower prices. For example, out of all fair price shops operating in Tamil Nadu, nearly 94 percent are being run by the cooperatives. In Delhi, Mother Dairy is providing milk and vegetables to the consumers at controlled prices which are decided by the Delhi Government. Amul is another example in this regard. It has brought about the White Revolution in the country. There are many more cooperatives and NGOs also working intensively towards this direction.



Write notes on: Issue price

Issue Price - In order to help the poor strata of the society, the government provides them food grains from the buffer stock at a price much lower than the market price. This subsidized price is known as the Issue Price.



Which system of power sharing is called Checks and Balances?

Power-sharing among organs of government (legislature, executive, judiciary) is called a system of checks and balances. 


What is the Mid-day Meal Scheme? Explain by giving its purpose.

1:The Mid-day Meal Scheme was started to provide a cooked mid-day meal on every school day with the nutritional content of 450 calories, 12 gm protein and other micro-nutrients to all children studying in Class I to VIII in government, local body, and government-aided schools.
2:The basic purpose of this scheme was to improve enrollment, retention and attendance of the children in school and simultaneously improving nutritional levels among them.
3:This encouraged poor children, belonging to disadvantaged sections, to attend school more regularly and help them concentrate on classroom activities.
4:An additional purpose was to provide nutritional support to children of primary classes in drought-affected areas.
5:It is the largest school feeding program in the world covering 10.44 crore children in 12.2 lakh elementary schools across the country. The Mid-day Meal scheme is one of the most successful schemes of the Government of India.


Write notes on:   Fair price shops

Fair Price Shops - The foodgrains procured by the government through FCI is distributed to the poor section of the society through ration shops. The Ration Shops are called Fair Price Shops because food grains are supplied to the poor through these shops at much reasonable and a fair price than the market price which is often high. Any family with a ration card can purchase stipulated amount of food grains, sugar, kerosene etc. every month from the nearby fair price shop.



What has our government done to provide food security to the poor? Discuss any two schemes launched by the government?

Our government has undertaken a number of measures to provide food security to the poor. A brief account of these measures is given below :
- Maintenance of Buffer Stock : Our government maintains buffer stock of food grains through Food Corporation of India.
- Public Distribution System : The food procured by the FCI is distributed among the poor through ration shops. Presently, there are 4.6 lakh ration shops int the country. 
- Nutritional Programmes : In order to provide national security, our government has launched various schemes. In 2000 two special schemes were launched one Antyodaya Anna Yojana and second Annapurna Schemes.
The former relate to the poorest of the poor, while the latter targets senior citizens. Under AAY scheme 35 kilograms food grains are made available t to each eligible family at the rate Rs 2 per kg of wheat and Rs 3 per kg for rice. Under APS 10 kilograms of food grain is made available to the eligible persons free of cost.


Write notes on 'Buffer stock'.

Buffer Stock - It is the stock of food grains, particularly wheat and rice, which the government procures through the Food Corporation of India (FCI). The FCI purchases these cereals directly from the farmers of those states where they are in surplus. The price of these commodities is much before the actual sowing season of these crops. The food grains thus purchased by the FCI are kept in big granaries and are called Buffer Stock. Maintaining buffer stock is a step taken by the government in order to ensure food security in the country.



Why is buffer stock created by the government?

(i) Buffer stock is the stock of foodgrains, namely wheat and rice procured by the government through Food Corporation of India (FCI). The FCI purchases wheat and rice from the farmers in states where there is surplus production. The purchased foodgrains are stored in granaries.
(ii) Thus, buffer stock is created by the government to distribute these foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price.
(iii) Buffer stock also helps resolve the problem of shortage of food during adverse weather conditions.


What has our government done to provide food security to the poor? Discuss any two schemes launched by the government.

The government has launched several schemes in order to provide food security to the poor. Two of these schemes are mentioned below:
(i) National Food for Work Programme: This programme was launched on November 14, 2004 in 150 most backward districts of the country with the objective of intensifying the generation of supplementary wage employment. The programme is open to all rural poor who are in need of wage employment and desire to do manual unskilled work. It is implemented as a 100 per cent centrally sponsored scheme and the foodgrains are provided to states free of cost.
(ii) Antyodaya Anna Yozana (AAY): This scheme was launched in December 2000. Under the scheme one crore of the poorest among the BPL families covered under the targeted Public Distribution System were identified. Poor families were identified by the respective state rural development departments through a Below Poverty Linc (BPL) survey. Twenty five kilograms of foodgrains were made available to each eligible family at a highly subsidised + rate oft 2 per kg for wheat and Rs. 3 per kg for rice. This quantity has been enhanced from 25 to 35 kgs with effect from April 2002. The scheme has been further expanded twice by additional 50 lakh BPL families in June 2003 and in August 2004. With this increase, 2 crore families have been covered under the AAY.


Which states are more food insecure in India?

The economically backward states with high rate of poverty are more food insecure in India. The states of Uttar Pradesh, Bihar, Jharkhand, Orissa, West Bengal, Chattisgarh, Madhya Pradesh and Maharashtra account for the largest number of food insecure in India.


How is food security ensured in India?

Food security is ensured in India by   
(i) Creation of buffer stock.   
(ii) Introduction of the Public Distribution System (PDS).   
(iii) Running other special programmes like   
           (a) Food for work programme   
           (b) Mid-day meal in schools   
           (c) Integrated child development services  


Write notes on:
(a) Minimum support price
(b) Buffer stock
(c) Issue price
(d) Fair price shops

(a) Minimum Support Price: The Food Corporation of India (FCI) purchases wheat and rice from the farmers in states where there is surplus production. The farmers are paid a pre-announced price for their crops. This price is called Minimum Support Price (MSP). The MSP is declared by the government every year before the sowing season to provide incentives to the farmers for raising the production of these crops.
(ii) Buffer Stock: Buffer stock is the stock of foodgrains, namely wheat and rice procured by the government through Food Corporation of India (FCI). This buffer stock is created in order to distribute foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price.
(c) Issue Price: The foodgrains stored in granaries are distributed in the deficit areas and among the poorer strata of society at a price lower than the market price known as issue price.
(d) Fair Price Shops: Fair price shops are ration shops that keep stock of foodgrains, sugar, kerosene oil for cooking. These items are sold to people at a price lower than market price These are government sponsored shops.


Which are the people more prone to food insecurity?

 (i) The SCs, STs and some sections of the OBCs who have either poor land base or very low land productivity are prone to food insecurity.
(ii) The people affected by natural disasters, who have to migrate to other areas in search of work, are also among the most food insecure people.
(iii) Pregnant and nursing mothers and children below the age of 5 years constitute an important segment of the food insecure population.


Affordability is one of the dimensions of food security. What does the term 'affordability' imply?

Affordability implies that an individual has enough money to buy sufficient, safe and nutritious food to meet one's dietary needs.


On what grounds is the Public Distribution System criticised?

The Public Distribution System faces severe criticism on several grounds:
(i) Instances of hunger are prevalent despite overflowing granaries. FCI godowns are overflowing with grains, with some rotting away and some being eaten of rats.
(ii) The marked ineffectiveness of PDS is criticized severely. It is apparent from the fact that the average consumption of PDS grain at the all India level is only 1 kg per person per month. The average consumption figure is as low as less than 300 gm per person per month in the states of Bihar, Orissa, and Uttar Pradesh. In contrast, the average consumption in most of the southern states like Kerala, Karnataka, Tamil Nadu, and Himachal Pradesh is in the range of 3-4 kgs per person per month. As a result, the poor have to depend on markets rather than the ration shops for their food needs.
(iii) PDS dealers are sometimes found resorting to malpractices like diverting the grains to open market to get better margin, selling poor quality grains at ration shops, the irregular opening of the shops, etc
(iv) It is common to find that ration shops regularly have unsold stocks of poor quality grains left. This has proved to be a big problem.
(v) When ration shops are unable to sell, massive stock of foodgrains piles up with the FCI.


Fill in the blanks with suitable words.
The Indian government has established ___________ to buy and store food grains.

The Indian government has established Food Corporation of India to buy and store food grains. The widest and biggest storage capacity is actually held by the FCI (Food Corporation of India) as well as its associate organizations. FCI stands for Food Corporation of India which was set up on 14 January 1965 in the district of Thanjavur which is known as "Rice bowl of Tamil Nadu". Headquarters are located in Delhi. Buffer Stock is the stock of foodgrains, namely wheat and rice procured by the government through Food Corporation of India (FCI). The FCI purchases wheat and rice from the farmers in states where there is surplus production. The farmers are paid a pre-announced price for their crops. 

 



What was the target of Revamped Public Distribution System (RPDS)?

1:The target of RPDS was to provide the benefits of PDS to remote and backward areas.
2:The Revamped Public Distribution System (RPDS) was launched in June 1992 with a view to strengthen and streamline the PDS as well as to improve its reach in the far-flung, hilly, remote, and inaccessible areas where a substantial section of the poor life.


Fill in the blanks with suitable words.
The government fixes the minimum price for the food grains before sowing season. This is called _________.

Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops. Minimum Support Price is an important part of India's agricultural price policy. The MSP helps to incentivize the framers and thus ensures adequate food grains production in the country. Based on the recommendations of the Commission for Agricultural Costs and Prices, the Department of Agriculture and Co-operation, Government of India, declares Minimum Support Prices (MSP) for 22 crops before their sowing seasons. According to Farmer Portal, the Commission analyses the following factors to determine the minimum support price: Cost of cultivation per hectare and structure of costs in various regions of the country and changes therein. Cost of production per quintal in various regions of the country and changes therein.



What are the problems of the functioning of ration shops?

The following problems are there in the functioning of ration shops:
(i) The PDS dealers are sometimes found resorting to malpractices like diverting the grains to open market to get better margin, selling poor quality grains at ration shops, irregular opening of the shops etc.
(ii) It is common to find that ration shops regularly have unsold stocks of poor quality grains left.
(iii) When ration shops are unable to sell, a massive stock of foodgrains piles up with the FCI.
(iv) Sometimes these stored grains are rotten away.


Answer the following in a sentence each.
What is 'food security'?

Food security, as defined by the United Nations' Committee on World Food Security, means that all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food that meets their food preferences and dietary needs for an active and healthy life. Examples include soup kitchens, food banks, school lunch programs, and other programs that give food to people in need without requiring any type of commitment in return Food insecurity – often rooted in poverty – decreases the ability of countries to develop their agricultural markets and economies. Access to quality, nutritious food is fundamental to human existence. Secure access to food can produce wide ranging positive impacts, including:  Increased global security and stability.



Who constitute an important segment of the food insecure population?

1:A large proportion of pregnant and nursing mothers and children under the age of 5 years constitute an important segment of the food insecure population.
2:The poorest of poor (old people, unmarried sisters, etc.)and the people of lower castes constituted an important segment of food insecure population.


Why was Targeted Public Distribution System (TPDS) introduced in June 1997?

1:TPDS was introduced in June 1997 to provide subsidized food and fuel to the poor through a network of ration shops.
2:Food grains such as rice and wheat that are provided under TPDS are procured from farmers, allocated to states, and delivered to the ration shop where the beneficiary buys his entitlement.


Write a note on the role of cooperatives in providing food and related items.

(i) The cooperatives are playing an important role in food security in India especially in the southern and western parts of the country. The cooperative societies set up shops to sell low-priced goods to poor people.
(ii) For example, in Tamil Nadu around 94% fair price shops are being run by the cooperatives. In Delhi, Mother Dairy is malting strides in provision of milk and vegetables to the consumers at controlled rate decided by Government of Delhi.
(iii) Amul is another success story of cooperatives in milk and milk products from Gujarat.
(iv) Many more cooperatives are running in different parts of the country to provide food and related items to different sections of society.


Answer the following in a sentence each.
What is meant by buffer stock?

Buffer stock is a reserve of a commodity that can be used to offset price fluctuations and in case of a natural disaster. A buffer stock of food grains is created by the government so that it can be distributed in food deficit areas and among the poorer strata of society at a price much lower than the market price. Maintaining buffer stock is a step taken by the government in order to ensure food security. 

A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level) and releases stocks during bad harvests to prevent prices rising above a target range (or price level). 

Buffer stock refers to a reserve of a commodity that is used to offset price fluctuations and unforeseen emergencies. 

Buffer stock is generally maintained for essential commodities and necessities like foodgrains, pulses etc



Answer the following in five-six sentences each.
Explain the working of the public distribution system in India.

 The public distribution system means the system of management of the food economy and distribution of food grains at an affordable price through Ration shops. This scheme provides staple food grains, such as wheat rice, sugar kerosene to BPL families. The centre procures food grains from farmers at a minimum support price (MSP) and sells it to states at central issue prices. The public distribution system is a government-sponsored chain of shops entrusted with the work of distributing basic food and non-food commodities to the needy sections of the society at very cheap prices. 

The current status of the Public Distribution System (PDS): 

(i) Public Distribution System is the most important step taken by the government of India towards ensuring food security. 

(ii)In the beginning, the coverage of PDS was universal with no discrimination between the poor and non-poor.



What the defects of P.D.S.?

Defect of P.D.S. are as follows:
(a) Ration cards are not issued to those who are homeless and poor, and those who do not have residential address. They are deprived of the Food security system. So 80% of the poor are unable to enjoy the benefits. 
(b) There are regional inequalities in the P.D.S. In 1995 the four southern states Andhra Pradesh, Karnataka, Kerala and Tamil Nadu took nearly 40% of total P.D.S. off take of food grains in the country while the four northern states Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh took just 10% of total P.D.S. off take of food grain.
(c) Low per caption backward condition of agriculture and industries and very high population density are a few reasons for it.
(d) The urban bias of the P.D.S. is seen in the 85% off take by these urban areas Fair prices shops are there in the villages but they hardly have any food grains.
(e) Inefficiency of the Food Corporation of India (FCI) is seen by the increase in its economic cost. The excess amount of rice and wheat are concentrated in only one states.


What are the main objectives of Public Distribution System?

The main objective of Public Distribution System is to ensure food security and poverty alleviation by making available the essential commodities, specially food grains at an affordable and uniform price at the door steps of the consumers.


On whom does the performance of P.D.S. depend?

To facilitate the distribution, the Food Corporation of India (FCI) acts a central nodal agency responsible for the procurement of food grains from farmers at a price that is often higher than market price . The individual state governments then procure the food grains at a subsidised price known as the ‘central issue price’ from the FCI , these goods are then distributed to consumers via fair price or ration shops


Who do not purchase grains from P.D.S.?

(a) $$80\%$$ of the homeless poor and many others, who have no residential address are not able to purchase garin from the P.D.S and get the benefit from subsidized food through P.D.S.
(b) In $$1997$$ with the adoption of the Dual Pricing System, the purchases of the food grains from the P.D.S. of those families, who were above poverty line decreased.


Explain any two benefits of Public Distribution System in India.

The two benefits of public distribution system in India are:
(a) It distributes subsidized goods like wheat, rice and sugar, kerosene to the poor people through a network of public distribution shops or Ration shops.
(b) It provides employment to fair price shop owners, their employees and the other related workers which reduces poverty and unemployment.


What are the main objectives of Public Distribution System?

The objectives of the Public Distribution System are as follows:
  • To protect the low income groups by guaranteeing the supply of certain minimum quantities of food grains at an affordable and uniform price.
  • Maintain the minimum nutritional status of our population.
  • Controlling the prices of Essential Commodities in the open market.


Who are excluded from the benefit of Public Distribution System ?

Those families with white ration cards and whose annual income is more than 1 lakh are excluded from the benefits of the Public Distribution System.


Explain the drawbacks of Public Distribution System.

The drawbacks of the Public Distribution System (PDS) are as follows:
a. Limited benefits to the poor : Under the PDS, food grains are provided to the Nation Card holders only. The seasonal migrant labour and homeless people do not get this benefit as they do not have a permanent residential address.
b. Regional disparities : Large number of the BPL families in the less developed states do not avail the benefits of the PDS.
c. Urban bias : The transport system in the villages is not efficient. As a result, the food grains and Kerosene are not available in the fair price shops in the villages.
d. Inefficient Food Corporation of India (FCI) : The FCI is inefficient. The excess stock of food grains is not stored properly in the godowns of FCI. There is scarcity of food grains, in spite of increase in the production of food grains. 


The shops established to distribute essential commodities to people by the Government are _______.

The shops are called Fair Price shops. They chiefly sell rice, wheat and sugar at a price lower than the market price.


What is meant by Public Distribution System?

Public Distribution System (PDS) is a government regulated chain of ration shops entrusted with the work of distributing basic food and non-food commodities to the poorer sections of the society at subsidised prices.

Wheat, rice, kerosene, sugar, etc. are a few major commodities distributed by the Public Distribution System.




Answer the following question in one or two sentence.
What are the basic objectives of Public Distribution System?

The main objectives of the Public Distribution System are: 
  • To provide essential goods to the consumers at reasonable and subsidized prices. 
  • To maintain a minimum nutritional status of the population.


Answer the following question in one or two sentence.
Write any two drawbacks of Public Distribution System.

The two drawbacks of Public Distribution System are as follows:
  • The limited benefit to poor: Under PDS, food grains are provided to ration card holders only. These ration cards are issued on the basis of residential address. So, seasonal migrant workers and homeless people are not to get its benefit.
  • Regional disparities: Some regions are well developed while some are not. In some states, a large number of families is below the poverty line. But, the off-take of food grain through PDS is not accordingly. Due to this regional imbalance, most of the people are deprived of the benefits of PDS.


Why is Minimum Support Price (MSP) fixed by the government?

Minimum Support Price (MSP) is price fixed by Government of India to protect the producer - farmers - against excessive fall in price during bumper production years. The minimum support prices are a guarantee price for their produce from the Government. The major objectives are to support the farmers from distress sales and to procure food grains for public distribution. In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market, government agencies purchase the entire quantity offered by the farmers at the announced minimum price. Minimum Support Price (MSP) is fixed by the government to safeguard the interest of farmers.



What are the measures suggested to remove the defects of Public Distribution System?

The following measures should be taken to improve the present Public Distribution System(PDS): 

1) Implementation of measures such as door-step delivery of food grains. 

2) Improving the viability of fair price shop operations. 

3) Greater monitoring and vigilance. The PDS has been criticised because: Instances of hunger are prevalent despite overflowing granaries. The FCI godowns are overflowing with grains where some are rotting away and some are eaten by rats. 




Write the names of logo and certification used on electric equipment and food products.

Certification Marks Issued for different products in India. 

1. AGMARK: AGMARK is a certification mark used for agricultural products in India. This mark assures that the product conforms to a set of standards approved by the Directorate of Marketing and Inspection of the Government of India. AGMARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards. The AGMARK is legally enforced in India by the Agricultural Produce (Grading and Marking) Act of 1937 (and amended in 1986).

2. ISI mark: The ISI mark is a standards-compliance mark for industrial products in India since 1955. The mark certifies that a product conforms to an Indian standard (IS) developed by the Bureau of Indian Standards (BIS), the national standards body of India. 



Class 9 Economics Extra Questions