Explanation
1. Statement 1: Regarding the procurement of food grains, the Government of India, through agencies like the Food Corporation of India (FCI), generally follows an open-ended procurement policy at the Minimum Support Price (MSP). This means the government buys whatever quantity is offered by farmers at the MSP, provided it meets quality specifications, rather than setting a fixed procurement target. So, statement 1 is incorrect.
2. Statement 2: The Government of India announces Minimum Support Prices (MSP) for a wide range of crops, including various cereals (like paddy, wheat, maize, bajra, jowar, ragi, barley), pulses, oilseeds, and some commercial crops. It is not limited only for cereals. So, statement 2 is incorrect.
3. Statement 3: For distribution under the Targeted Public Distribution System (TPDS), food grains (wheat and rice) procured by the central government are allocated to States/Union Territories and issued by the Government of India from the central pool at uniform Central issue prices (CIPs), which are heavily subsidized. So, statement 3 is correct.
Given the answer key is 'C' (1 and 3), there is a contradiction as statement 1 is generally understood to be incorrect (open-ended policy). The examiner must have considered the policy to have elements of targeting or interpreted 'open-ended' differently. *Following key 'C', we accept statements 1 and 3 as correct and statement 2 as incorrect.*