Write notes on:

(a) Minimum support price

(b) Buffer stock

(c) Issue price

(d) Fair price shops

(a) Minimum Support Price: It refers to the price at which the government secures food grains (wheat and rice) through FCI from the farmers in states where there is surplus in production. The farmers are paid a pre-announced price for their crops. The minimum support price is declared by the government every year before the sowing season. The purchased grain forms the part of the buffer stock and is stored in FCI granaries.

(b) Buffer Stock: It refers to the stock of food grains namely wheat and rice secured by the government through food corporation of India. The FCI purchases wheat and rice from the farmers in states where there is surplus production. The farmers are paid a pre-announced price for their crops., which is called minimum support price.

(c) Issue Price: It refers to the price at which the government sells the food grains in poor sections of society though several welfare schemes to ensure food security. This price is essentially kept lower than the market rates so that all the economic sections have access to the food grains.

(d) Fair Price Shops: It refers to the ration shops which are regulated by the government and through which the food grains secured by the government through FCI is distributed under various welfare schemes. This is called the public distribution system. Ration shops are now present in most localities, villages, towns and cities. There are about 5.5 lakh ration shops all over the country. Ration shops are known as fair price shops.