write note on minimum (i) support price (ii) buffer stocks (iii) issue price (iv) fair price shops

Q- Write a note on:

Ø Minimum support price

Ø Buffer stocks

Ø Issue price

Ø Fair price shops


· Minimum support price:- Minimum support price (MSP) is a price given by the government to the farmers to buy grains from them this price is different from market price.

· Buffer stocks:- Buffer stock are created by the government to provide food grains to the people who are poor and can’t afford food in high prices.

· Issue price :- The price at which the procured food grains are sold is called issue price this price is greater than the minimum support price but less than the market price of the same food grain

· Fair price shops:- Fair price shops are also known as ration shops which are issued by the government who sell food grain, sugar and kerosene at issue price to the selected poor people of the society. People have to verify themselves to get ration cards which is issued by the government and with help of ration cards poor people can by these things at low prices.

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