Question

Write a note on instruments of government control

Answer 1

Namboard remained the buyer of last resort & government tool for intervening in the market.Producer prices of all controlled agricultural commodities,except maize for which a fixed price was determined,were set as floor of prices.This meant that any price above the floor price was determined by supply & demand & producers & buyers had the freedom to bargain.It was hoped that marketing costs were going to decline in the system as a result of competition & reduced average transport distance,due to decentralization.