Courses of Action – Bumper wheat output in kharif Statement: There is an unprecedented increase in wheat production this kharif in most parts of the country. Decide which action(s) logically follow.
Verbal Reasoning
Course of Action
Difficulty: Medium
Choose an option
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AOnly I and II follow
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BOnly II and III follow
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COnly I and III follow
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DAll follow
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ENone of these
Answer
Correct Answer: None of these
Explanation
Introduction / Context:A bumper harvest can depress local prices if poorly managed but also creates export and buffer opportunities. The proposed actions must be farmer-sensitive, market-aware, and operationally practical.
Given Data / Assumptions:
- Bumper wheat output across many regions.
- Actions: I) immediately lower government procurement price; II) ask farmers to store excess themselves; III) make best efforts to export wheat.
Concept / Approach:Procurement price (MSP) is a farm-income floor; lowering it harms farmers and is typically avoided during gluts. Storage at farm level strains smallholders. Proactive exports can stabilise domestic markets and earn forex; thus, only III is sound.
Step-by-Step Solution:
I (lower procurement price): Not advisable; it undercuts farm incomes and discourages production. Does not follow.II (farmers store excess themselves): Many small farmers lack storage; quality and loss risks increase. Not a sound blanket action.III (export): Sensible to manage surplus and support prices. This follows—but the options provided do not offer “Only III”.Verification / Alternative check:
Standard policy levers include public procurement, buffer stocking, calibrated open-market sales, and exports—not lowering MSP nor shifting storage burdens to smallholders.Why Other Options Are Wrong:
I+II, II+III, I+III, All: each includes at least one unsound action (I or II). Hence none of the listed combinations is correct.Common Pitfalls:
Assuming more actions are always better; ignoring farmer welfare and feasibility.Final Answer:None of these