Consider some of the steps taken by the government to stabilise food grain prices in India.
1. Maintenance of buffer stocks.
2. Announcing minimum support prices before arrival of a crop.
3. Public distribution system.
4. Encouraging cooperative farming.
Select the correct answer from the code given below:

Correct option is C

The correct answer is (c) 1, 2 and 3 are correct
Explanation:
1. Maintenance of buffer stocks
· This helps the government release grains during shortages → stabilises prices.
2. Announcing Minimum Support Prices (MSP)
· Ensures farmers get a fair price and prevents drastic price fluctuations → stabilises prices.
3. Public Distribution System (PDS)
· Provides subsidized food grains to the poor; controls market demand and helps stabilise prices.
4. Encouraging cooperative farming
· Cooperative farming is helpful for increasing production and efficiency but it does NOT directly stabilize food grain prices.
Additional Information:
· The government uses MSP, buffer stocks, PDS, and market interventions to regulate and stabilize food grain prices.
· Cooperative farming focuses more on enhancing productivity and reducing production costs.