How does the government maintain the price of rice in India

Learn about the method used by the Indian government to maintain the price of rice in the market.
The Indian government employs various measures to maintain the price of rice in the market. Some of the methods used are as follows: 1. Minimum Support Price (MSP): The government sets a minimum price for rice, which is called the Minimum Support Price, and purchases rice from farmers at this price. This ensures that farmers receive a fair price for their produce and the price of rice is kept stable. 2. Buffer Stock: The government maintains a buffer stock of rice to ensure that there is no shortage in the market. This buffer stock is kept in government-owned warehouses and is released in the market as and when needed. 3. Export and Import policies: The government regulates the export and import of rice to maintain a balance of supply and demand in the market. In case of a shortage, rice can be imported from other countries, and in case of excess production, rice can be exported. 4. Public Distribution System (PDS): Rice is an essential commodity for the poor in India. Therefore, the government distributes rice at subsidized rates through the Public Distribution System to ensure that it is accessible to all. These measures taken by the government ensure that the price of rice is stable in the market and that it is available to all sections of society.
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