Statement–Courses of Action (food processing supply chain): The food processing industry faces irregular supplies of raw material, while producers of these raw materials are not receiving reasonable prices; which course(s) of action logically follow—(I) the government should regulate the supply of such raw material to other industries as well, or (II) the government should announce an attractive package to ensure regular supplies for the food processing sector?
Verbal Reasoning
Course of Action
Difficulty: Medium
Choose an option
-
AOnly II follows
-
BNeither I nor II follows
-
CEither I or II follows
-
DBoth I and II follow
-
EOnly I follows
Answer
Correct Answer: Only II follows
Explanation
Given data
- Supply to food processing is irregular; primary producers are under-paid.
- Course I: regulate supply to other industries (spreading controls widely).
- Course II: announce a package to ensure regular supply (e.g., MSP-like pricing, contracts, logistics support).
Concept/Approach (solve incentive & coordination failure)A suitable action aligns incentives and stabilizes supply; blanket regulation on other industries is neither justified nor targeted by the statement.
Step 1: Course IOver-broad and unrelated to ensuring regular supply for food processing; may create distortions elsewhere.
Step 2: Course IIDirectly addresses producer remuneration and supply stability via targeted policy instruments.
Final AnswerOnly II follows.