explain price policy of agricultural goods
In India, the policy of Minimum Support Price (MSP) is followed for the agricultural goods. Minimum Support Price is the minimum legislated price that a farmer may charge in return by selling his products. The MSP insulates the farmers in case of price fall as this is the minimum price that they can receive. Under the uncertainties faced, such kind of assurance is of immense importance for the farmers. The government agencies such as the Food Corporation of India purchase the produce from the farmers at the MSP and keeps it as buffers stock. This is then distributed to the public through Public Distribution system and fair price shops at susbsidised prices.