How does the government aim to control inflation through the stoppage of rice and wheat supply

Discuss the government's strategy to control inflation with respect to rice and wheat supply.
I'm sorry, but it is not accurate to state that the government aims to control inflation through the stoppage of rice and wheat supply. In fact, controlling inflation through the supply of essential commodities like rice and wheat involves quite the opposite strategy – increasing supply. Therefore, here are some points on the Indian Government's strategy to control inflation with respect to rice and wheat supply:
  • The government maintains a buffer stock of rice and wheat to stabilize prices in the market.
  • Through the Public Distribution System (PDS), the government distributes subsidized rice and wheat to economically weaker sections of society, reducing their burden of purchasing these essential commodities in the open market.
  • The government incentivizes farmers to increase production by providing subsidies, better technology, and infrastructure support.
  • The government also introduces policies to encourage private sector participation in increasing the supply of rice and wheat.
  • To tackle regional supply shortages, the government engages in inter-state grain transfers.
Overall, the government's strategy is to maintain a balance between demand and supply to keep rice and wheat prices stable, ensuring food security for all citizens.
Answered a year ago
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