Indian Economy / Agriculture Sector
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The main aim Agricultural Pricing Policy is fixation of Minimum Support Price for agricultural commodities and announcing the prices well in advance and to discourage the regional pricing system.
It is the price at which Food Corporation of India (FCI) procures the farm products from the farmers. It may be more than or equal to MSP depending on the quality but less than the prevailing market price. It is applicable only to food crops.
It includes Procurement Price by FCI, labor charges, market fees, transport cost and storage charges.
It is the price at which FCI issues the essential commodities to the States and Union Territories. It may be less than or equal to the Economic Cost depending upon the policies of Government of India.