a. Minimum Support Price
The farmers are paid a pre-announced price for their crops. This price is called Minimum Support Price. The MSP is declared by the government every year before the sowing season to provide incentives to the farmers for raising the production of these crops.
b. Buffer Stock
Buffer Stock is the stock of food grains, namely wheat and rice procured by the government through Food Corporation of India (FCI).
c.Issue Price
Buffer stock is created to distribute food grains in the deficit areas and among the poorer strata of society at a price lower than the market price also known as Issue Price. This also helps resolve the problem of shortage of food during adverse weather conditions or during periods of calamity.
d. Fair Price Shops
The food procured by the FCI is distributed through government-regulated ration shops among the poorer section of the society. This is called the public distribution system (PDS). Ration shops are now present in most localities, villages, towns and cities. There are about 4.6 lakh ration shops all over the country. Ration shops also known as Fair Price Shops keep stock of food grains, sugar, kerosene oil for cooking. These items are sold to people at a price lower.