discuss the role of government in the stabilizatuon of food grains prices?
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Food Subsidy: Higher procurement prices induce farmers to sell more to the FCI. ... The Central Government bridges the gap between the economic cost incurred by the FCI towards procurement, storage, distribution and wastage of food grains and its average realisation on the basis of issue prices.
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govt. buy food grains from farmers at normal rate, and give it to needy at low rate so that no one dies of hunger.
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