Question

Write note on :
(i) Minimum support price
(ii) Buffer stock
(iii) Issue price
(iv) Fair price shops​

Answer 1

1) Minimum support price: It is the pre-announced price declared by the government at which it is willing to purchase crops directly from the farmers, if the crop price falls below the MSP. Every year farmers are paid by the government before the sowing season. 2)buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target range (or price level).

Answer 2

Explanation:

Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops. Minimum Support Price is an important part of India's agricultural price policy. The MSP helps to incentivize the framers and thus ensures adequate food grains production in the country.