Explain how prices are fixed for
agricultural crops in the Agricultural
Market yard
.
Answers
Answer:
Prices are determined by the interaction of the supply and demand functions, which historically have been influenced by government agricultural policies. This section provides information regarding supply and demand factors for the corn and wheat markets.
Answer:
Minimum Support Prices have been a cornerstone of the agricultural policy since 1965. The objective is to ensure remunerative prices to the growers for their produce with a view to encourage higher investment and production and evolve a balanced and integrated price structure in the context of
overall needs of the economy while safeguarding the interest of consumers by making available supplies at reasonable prices.
Implementation of MSP is undertaken through procurement by central and state level agencies. The procurement of wheat and rice is undertaken by
the Food Corporation of India under the Department of Food & Public Distribution, primarily to meet the requirements of buffer stock; Targeted Public Distribution Scheme (TPDS) and other welfare schemes of the government. However, the designated agencies’ intervention in the market for undertaking procurement operations assist market prices not to fall below the MSPs fixed by the
government.
Explanation: