MasteryExams
Economics • Indian EconomyMedium

In the context of the public distribution system in Sikkim, how do hilly terrain and remote distribution logistics influence the operational cost structure for food security implementation?

A. Transportation and handling charges escalate due to difficult topography and multi-stage transit requirements.✓ Correct Answer
B. Distribution costs drop to zero due to streamlined ropeway networks across all villages.
C. Foodgrain storage expenses are entirely borne by international donor agencies.
D. Logistics challenges are avoided by eliminating fair price shops in rural districts.

💡 Solution & Explanation

Distributing subsidized foodgrains under the National Food Security Act across rugged Himalayan terrain involves complex multi-tier transportation via trucks and headloads, leading to higher transit and handling expenses. Ropeway integration is partial rather than universal. Efficient supply chain management is vital for target delivery under sub-national welfare schemes.

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