Multiple choice

The Government of India has decided to import which of the following commodities at about Rs.16 a kg. whereas it pays only Rs.8.50 a kg for the purchase of the same within the country or its Public Distribution System?

  1. Wheat

  2. Rice

  3. Sugar

  4. Sugarcane

  5. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Government of India decided to import wheat at approximately Rs.16 per kg while paying only Rs.8.50 per kg for domestic procurement for the Public Distribution System. This price differential reflected the higher international market prices and logistical costs of wheat imports during periods of domestic shortage. The policy aimed to maintain food security buffer stocks despite the higher import costs.