Consider the following statements: 1. India is a member of the International Grains Council. 2. A country needs to be a member of the International Grains Council for exporting or importing rice and wheat. Which of the statements given above is/are correct?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2024, Q54

Contents9
UPSC Prelims GS2024Indian Economy
  1. A1 only
  2. B2 only
  3. CBoth 1 and 2
  4. DNeither 1 nor 2
Show answer

Answer: (A) 1 only

Correct Answer: (a) Statement 1 only.

Statement 1: India is a member of the International Grains Council — ✓ CORRECT.

The IGC was established in 1949 to promote cooperation in global grain trade.

Statement 2: Membership is required for importing/exporting rice and wheat — ✗ WRONG.

Any country can trade in grains regardless of IGC membership.

The IGC is just a forum for discussion and information-sharing, not a trade licensing body.

Key point: Don't confuse 'international council/organization' with 'mandatory membership for trade.'

Most such organizations are voluntary forums.

Why this was asked

The International Grains Council is a voluntary forum established in 1949 for cooperation and information-sharing in global grain trade, with India as a member.

UPSC is testing whether students confuse international organizations that are voluntary discussion forums with bodies that have mandatory membership requirements for trade.

International Grains Council

Indian Economy International Grains Council

International Grains Council: Structure, Functions & India's Membership

Must know

India is a member of the International Grains Council (IGC)

IGC established in 1949 as an intergovernmental forum for grain trade cooperation

IGC membership is not mandatory for importing or exporting grains

Good to know

IGC functions as information-sharing and discussion platform, not a trade regulator

What is IGC

The International Grains Council is an intergovernmental organization that promotes international cooperation in grain trade. Established in 1949, it serves as a forum for discussion and information exchange — not as a trade licensing authority.

IGC Key Details

Aspect

Details

Established

1949

Headquarters

London, UK

Members

30+ countries including India, USA, EU, Australia

Main Function

Information sharing and market analysis

Trade Role

No regulatory authority over grain trade

Grains Covered

Wheat, maize, rice, barley, sorghum, oats

Core Functions

Market intelligence: Publishes grain market reports and statistics

Policy discussion: Forum for members to discuss trade policies

Technical cooperation: Facilitates knowledge exchange on grain production

Emergency consultation: Provides platform during food crises

Question Connection

This question tests understanding that IGC membership is voluntary and not required for grain trade. Statement 2 was the trap — confusing an international forum with a mandatory trade regulator.

Exam traps

Trap: Assuming international councils/organizations have mandatory membership for trade

Confusion: IGC sounds regulatory but is only a discussion forum

Common error: Mixing up voluntary cooperation bodies with actual trade licensing authorities

Remember: Most 'International Councils' are forums, not regulators

International Commodity Organizations

Indian Economy

International Commodity Organizations: Types & Functions

Must know

Most international commodity organizations are voluntary forums, not trade regulators

India is member of multiple commodity councils including IGC, International Coffee Organization

Good to know

These organizations focus on information sharing and market analysis

Purpose & Nature

International commodity organizations are intergovernmental forums that facilitate cooperation in specific commodity trades. They provide market intelligence and policy discussion platforms but generally do not regulate actual trade flows.

Major Commodity Organizations

Organization

Commodity

India's Status

Main Function

International Grains Council

Grains (wheat, rice, etc.)

Member

Market analysis & information

International Coffee Organization

Coffee

Member

Market monitoring & development

International Cocoa Organization

Cocoa

Observer

Market stability & sustainability

International Sugar Organization

Sugar

Member

Market analysis & statistics

International Cotton Advisory Committee

Cotton

Member

Technical cooperation & data

Key Distinctions

Voluntary membership: Countries can trade commodities without joining these organizations

Information focus: Primary role is data collection and market analysis

No trade barriers: These bodies don't impose import/export restrictions

Policy coordination: Facilitate discussions on trade policies among members

Exam traps

Never assume: Membership in commodity organizations is mandatory for trade

Distinguish: Commodity councils vs actual trade regulatory bodies like WTO

Remember: 'International Council' usually means forum, not regulator