question_answer 28)

Write notes on   (a) Minimum Support Price     (b) Buffer Stock   (c) Issue Price               (d) Fair Price Shops  

Answer:

(a) Minimum Support Price   (i) The Food Corporation of India (FCI) purchases wheat and rice from the farmers in states where there is surplus production.   (ii) The farmers are paid pre-announced price for their crops. This price is called Minimum Support Price (MSP).   (iii) The MSP is declared by the government every year before the sowing season to provide incentives to the farmers for raising production of these crops.   (b) Buffer Stock   (i) Buffer stock is the stock of foodgrains namely wheat and rice procured by the government through Food Corporation of India (FCI).   (ii) The FCI purchases wheat and rice from the farmers in states where there is surplus production and stores this grain in the granaries as butter stock.   (iii) This is done to distribute foodgrains in the deficit areas and among the poor strata of society when there is shortage of foodgrains because of crop failure due to natural calamities.   (c) Issue Price   (i) The FCI purchases foodgrains from the farmers in states with surplus food production and stores it in granaries.   (ii) This is done to distribute foodgrains in the deficit areas and among the poor state of society at a price lower than the market price which is also known as issue price.                       (d) Fair Price Shops                                              (i) The food procured by the FCI is distributed through government regulated ration shops among the poorer sections of the society. This is called Public Distribution System (PDS).                    (ii) Ration shops are now present in most localities villages, towns and cities.                                 (iii) Ration shops are also known as fair price shops.   (iv)These fair price shops keep stocks of foodgrains, sugar and kerosene oil. Here these items are sold at a price lower than the market price.