Consider the following statements : 1. The recent decision of government of India to partially decontrol the sugar industry gives the millers the freedom to sell sugar in open market and removes their obligation to supply sugar at subsidized rates to rati

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Q: 70 (CDS-II/2013)
Consider the following statements :
1. The recent decision of government of India to partially decontrol the sugar industry gives the millers the freedom to sell sugar in open market and removes their obligation to supply sugar at subsidized rates to ration shops
2. C Rangarajan panel also suggested decontrolling of sugar industry in India
Which of the statements given above is/ are correct ?

question_subject: 

Economics

question_exam: 

CDS-II

stats: 

0,17,11,8,2,17,1

keywords: 

{'sugar industry': [0, 0, 0, 2], 'subsidized rates': [0, 0, 0, 1], 'millers': [0, 0, 0, 1], 'open market': [0, 0, 0, 1], 'freedom': [1, 1, 2, 2], 'india': [8, 1, 7, 13], 'government': [5, 0, 0, 1], 'sugar': [0, 0, 0, 1], 'recent decision': [0, 0, 0, 1], 'obligation': [0, 0, 2, 1]}

The correct answer to this question is option 3, which states that both statements 1 and 2 are correct.

Statement 1 explains that the recent decision by the government of India has partially decontrolled the sugar industry. This means that millers are now allowed to sell sugar in the open market without any restrictions. Previously, they were obligated to supply sugar at subsidized rates to ration shops. However, this obligation has now been removed.

Statement 2 mentions the recommendation by the C Rangarajan panel to decontrol the sugar industry in India. This panel, which was headed by economist C Rangarajan, suggested that the government should implement reforms to decontrol the sugar sector and allow market forces to determine prices.

Both statements provide accurate information about the recent decision by the government to partially decontrol the sugar industry and the recommendation by the C Rangarajan panel. Therefore, option 3, which states that both statements are correct, is the correct answer.

Alert - correct answer should be option 3. Both statements 1 and 2 are correct.