Explain the steps taken by the government in developing rural markets.
Explain the steps taken by the government in developing rural markets.
Following are the steps taken by the government in developing rural markets
(i) Regulation of Markets - The government has established regulated markets where the sale and purchase of the produce are monitored by Market Committee consisting of representatives of government, farmers and traders. Regulation of markets helps to create orderly and transparent marketing conditions.
(ii) Improvement in Physical Infrastructure - Through this measure, the government ensures the improvement in physical infrastructure such as roads, railways, warehouses, cold storages, etc.
(iii) Cooperative Marketing - The government encourages farmers to form producer marketing cooperative societies so that they get a better price of their produce through a collective sale.
(iv) Supportive Policies - In addition to the above policies, the following supportive policies have also been introduced to develop rural markets.
(a) Minimum Support Price (MSP) - The government fixes MSP for agricultural output. This policy assures a minimum income to the fanners.
(b) Maintenance of Buffer Stock of Wheat and Rice - When market price falls much below the MSP, then government purchases the produce from the farmers at MSP and maintains buffer stock.
(c) Distribution of Foodgrains and Sugar - The buffer stocks are distributed among the poor through the Public Distribution System (PDS) at subsidised prices.
Following are the steps taken by the government in developing rural markets
(i) Regulation of Markets - The government has established regulated markets where the sale and purchase of the produce are monitored by Market Committee consisting of representatives of government, farmers and traders. Regulation of markets helps to create orderly and transparent marketing conditions.
(ii) Improvement in Physical Infrastructure - Through this measure, the government ensures the improvement in physical infrastructure such as roads, railways, warehouses, cold storages, etc.
(iii) Cooperative Marketing - The government encourages farmers to form producer marketing cooperative societies so that they get a better price of their produce through a collective sale.
(iv) Supportive Policies - In addition to the above policies, the following supportive policies have also been introduced to develop rural markets.
(a) Minimum Support Price (MSP) - The government fixes MSP for agricultural output. This policy assures a minimum income to the fanners.
(b) Maintenance of Buffer Stock of Wheat and Rice - When market price falls much below the MSP, then government purchases the produce from the farmers at MSP and maintains buffer stock.
(c) Distribution of Foodgrains and Sugar - The buffer stocks are distributed among the poor through the Public Distribution System (PDS) at subsidised prices.
