How can the central government control price rise in agricultural commodities

Explain the government policy used to control the price rise of agricultural commodities.
The central government can control price rise in agricultural commodities through various policies and interventions. Some of these measures include: 1. Supply management: The government can regulate the supply of agricultural commodities by maintaining buffer stocks and releasing them in the market during times of shortage. This helps stabilize prices and avoids sudden price increases. 2. Price ceilings: The government can set price ceilings to limit the maximum price that can be charged for agricultural commodities. This prevents profiteering and ensures affordability for consumers. 3. Export or import restrictions: By imposing restrictions on exports or imports of certain agricultural commodities, the government can manage the domestic supply and demand dynamics, thereby controlling price fluctuations. 4. Minimum support price (MSP): The government can announce and enforce a minimum support price for agricultural produce. This assures farmers a fair price for their crops, reducing their vulnerability to market fluctuations and discouraging hoarding. 5. Direct market intervention: Through agricultural marketing boards or government agencies, the government can directly purchase commodities from farmers at a fair price, thereby stabilizing prices and ensuring income security for farmers. 6. Investment in rural infrastructure: By improving infrastructure such as irrigation facilities, storage capacities, transportation networks, and market linkages, the government can enhance productivity and reduce wastage, leading to better price management. These measures, when implemented effectively, help the central government control price rise in agricultural commodities and ensure food security for the population.
Answered a year ago
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