Question

Describe
(i) Minimum stock price
(ii)Buffer stock
(iii) Issue price
(iv)Fair price shops

Answer 1

Minimum support price − It is the pre-announced price at which the government purchases food grains from the farmers in order to create a buffer stock. The minimum support price is declared by the government every year before the growing season. This provides incentives to the farmers for raising the production of the crops.