Question

explain the different price policy adopted by the government of India

Answer 1

The agricultural price policy of India has the following two main features.

1. Providing minimum support price to farmers for the foodgrain they produce. Under this policy, the government buys foodgrain that farmers produce at a minimum price to ensure that farmers are protected from fluctuations in the market price.

2. Providing foodgrain to the public distribution system (PDS) at subsidized prices for the poor. The foodgrain that the government buys from farmers at the minimum support price is then distributed through the PDS at subsidized prices.