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.
- 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.
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a year ago