+1 vote
by kratos

Why does the government announce minimum support price, remunerative and procurement prices for important crops?

1 Answer

+3 votes
by kratos
 
Best answer

The government announces the minimum support price and procurement price to save the farmers from exploitation by speculators and middlemen. Procurement price is the price at which the government actually buys the produce from the farmers. At the beginning of the growing season, the government announces the minimum support price and if the farmers do not get that price from the middlemen, the produce is purchased by the government

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