Question

s 10) write notes on.
(a) Minimum support price
(B) Buffer stack
C) Issue price
(0) Fair-price shape .​

Answer 1

Answer:

Explanation:

A) Minimum support price :

1:This is the pre-announced price at which the government purchases food grains particularly, wheat and rice from the farmers in order to create a buffer stock.  

2:This price is announced by the government every year before the sowing season to give incentive to the farmers to raise the production of the desired crop.  

3:The rising MSPs have raised the maintenance cost of procuring food grains by the government as well as induced farmers to divert land from production of coarse grains to the production of these crops.

B) Buffer stack: It is the stock of food grains, particularly wheat and rice, which the government procures through the Food Corporation of India (FCI). The FCI purchases these cereals directly from the farmers of those states where they are in surplus. The price of these commodities is much before the actual sowing season of these crops. The food grains thus purchased by the FCI are kept in big granaries and are called Buffer Stock. Maintaining buffer stock is a step taken by the government in order to ensure food security in the country.

C)Issue price:

It is the Price set by the Government of India for the Poor Strata people of Society at a Minimum Price lower than the Market Price is Called Issue Price.

D)Fair-price shops:

The Fair Price shops or the Ration Shops are all handled by the FCI. The food Procurred by the FCI from different farmers are all over the Country bought at Minimum Support Price is Distributed to these different Ration shops at a price lower than Market Price. All common commodities like Kerosene, Food Grains like Wheat and Rice are sold here.