UPSC Prelims Practice Questions — Government Approves Additional 25 LMT Wheat Exports to Support Farmers and Stabilise Markets

Q1. Under the 13 May 2022 notification that shifted wheat's export policy from 'Free' to 'Prohibited', which one of the following correctly describes the 'transitional arrangement' under which certain wheat exports remained permissible?

  • A. Wheat consignments handed over to and registered with Customs on or before 13 May 2022, and shipments backed by an irrevocable letter of credit issued on or before that date, were allowed to be exported.
  • B. All wheat exports to WTO member countries were permitted to continue for a 90-day window from the notification date.
  • C. Only exports of wheat flour (atta) were exempted, while unmilled wheat exports were fully prohibited.
  • D. Exports were permitted only to countries that had a bilateral free-trade agreement in force with India.

Q2. The notification amending wheat's export policy from 'Free' to 'Prohibited' in May 2022 was issued by which authority?

  • A. Directorate General of Foreign Trade
  • B. Department of Food & Public Distribution
  • C. Agricultural & Processed Food Products Export Development Authority
  • D. Commission for Agricultural Costs & Prices

Q3. In its April 2026 approval, apart from 25 LMT of wheat, the Department of Food & Public Distribution also permitted export of how many Lakh Metric Tonnes (LMT) of wheat products?

  • A. 3 LMT
  • B. 5 LMT
  • C. 10 LMT
  • D. 25 LMT

Q4. In the rationale for the April 2026 wheat export approval, the term 'distress sale' during peak arrivals refers to which one of the following?

  • A. Farmers being compelled to sell their produce below the Minimum Support Price when mandi arrivals peak and prices soften.
  • B. FCI offloading surplus stock below its reserve price to clear congested godowns.
  • C. Exporters selling wheat below the international benchmark price to capture global market share.
  • D. Sale of damaged or non-FAQ wheat at discounted rates to bulk consumers.

Q5. The April 2026 decision to open an additional wheat export quota to stabilise mandi prices and protect farmer returns was taken by which department?

  • A. Department of Commerce
  • B. Department of Food & Public Distribution
  • C. Department of Agriculture & Farmers Welfare
  • D. Directorate General of Foreign Trade

Q6. With respect to the institutional division of labour in wheat export management, consider the following statements: 1. The Department of Food & Public Distribution, not the Department of Commerce, is the nodal department for procurement and buffer-stock management of foodgrains. 2. The change in wheat's export policy from 'Free' to 'Prohibited' is notified exclusively by the Directorate General of Foreign Trade. 3. Both the Department of Food & Public Distribution and the DGFT function under the same Union ministry. Which of the statements given above is/are correct?

  1. The Department of Food & Public Distribution, not the Department of Commerce, is the nodal department for procurement and buffer-stock management of foodgrains.
  2. The change in wheat's export policy from 'Free' to 'Prohibited' is notified exclusively by the Directorate General of Foreign Trade.
  3. Both the Department of Food & Public Distribution and the DGFT function under the same Union ministry.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q7. Under the Open Market Sale Scheme (Domestic), the reserve/selling prices of foodgrains offloaded through e-auction are fixed by which authority?

  • A. Commission for Agricultural Costs & Prices
  • B. Food Corporation of India acting on its own discretion
  • C. The Central Government through the Department of Food & Public Distribution
  • D. Securities and Exchange Board of India

Q8. Consider the following channels reportedly used by FCI to make 30 LMT of wheat available under the Open Market Sale Scheme (Domestic) in 2023: 1. E-auction to private traders and flour mills. 2. Sale to State Governments for their schemes without e-auction. 3. Sale to PSUs and cooperatives such as Kendriya Bhandar, NCCF and NAFED without e-auction. 4. Free distribution to Antyodaya Anna Yojana households under the Public Distribution System. Which of the statements given above is/are NOT correct?

  1. E-auction to private traders and flour mills.
  2. Sale to State Governments for their schemes without e-auction.
  3. Sale to PSUs and cooperatives such as Kendriya Bhandar, NCCF and NAFED without e-auction.
  4. Free distribution to Antyodaya Anna Yojana households under the Public Distribution System.
  • A. 4 only
  • B. 1 and 4
  • C. 2 and 3
  • D. 1, 2 and 4

Q9. The Minimum Support Price for wheat is announced by the Central Government primarily on the recommendation of which body?

  • A. Cabinet Committee on Economic Affairs
  • B. Commission for Agricultural Costs & Prices
  • C. NITI Aayog
  • D. Food Corporation of India

Q10. The promotion and development of India's exports of scheduled agricultural and processed food products, including wheat, is the statutory mandate of which body?

  • A. Food Corporation of India
  • B. Agricultural & Processed Food Products Export Development Authority
  • C. Commission for Agricultural Costs & Prices
  • D. National Agricultural Cooperative Marketing Federation (NAFED)

Q11. The classification of goods into 'Free', 'Restricted' and 'Prohibited' categories for the purpose of India's export regulation derives from which statute?

  • A. The Customs Act, 1962
  • B. The Foreign Exchange Management Act, 1999
  • C. The Foreign Trade (Development and Regulation) Act, 1992
  • D. The Essential Commodities Act, 1955

Q12. Which one of the following is the principal central nodal agency responsible for procurement and maintenance of buffer stocks of wheat in the Central Pool?

  • A. Central Warehousing Corporation
  • B. Food Corporation of India
  • C. National Agricultural Cooperative Marketing Federation (NAFED)
  • D. Cotton Corporation of India