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Liberalisation, Privatisation And Globalisation : An Appraisal

Question

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Can massive food grains stocks be fruitfully utilized?

Solution

High procurement prices give farmers the incentive to produce more. To support the high prices, the Food Corporation of India (FCI) has to buy more and stocks of food grains rise. The government has to finance the maintenance of the addition to stock. The massive food grain stocks with the government should be utilized for poverty alleviation programmes financed though investment in food stocks will help in increasing the supply of the food grains.

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