What is the main function of FCI?

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Announce minimum support price.

Make laws on credit systems.

Purchase stock from farmers.

Both (1) and (3)

answer is D.

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Detailed Solution

The main functions of FCI are to announce a minimum support price and purchase stock from farmers.

Creating buffer stock to sustain the public distribution system is the Food Corporation of India's primary and crucial role in preserving the nation's food security. This is a reference to the government's stockpile of rice and wheat.

When an excess of grain is produced in a state, FCI works to buy the extra stock from the farmers.

As an incentive for the production process, these farmers are subsequently paid a pre-announced price for their crops, also known as the minimum support price, as a procurement cost.

The grains are placed in granaries for later use after procurement is complete.

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