NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL

ECONOMICS PROJECT SYNOPSISOn

PRICE FLOOR: MINIMUM SUPPORT PRICE and

INDIAN AGRICULTURE

Submitted to Prof Rajesh Gautam

Submitted by Kunal Sharma2013 BALLB 63

INTRODUCTIONPrice Floor or floor below which prices are not allowed to fall is nothing but the lowest legal price that a commodity can be sold at. It is an economic tool used by the government of countries to prevent prices from being too low so that fair prices for goods are available to the sellers of such goods. In a mixed socialist economy such as ours where the government steps in to protect the interest of the people such Price flooring is very vital to facilitate the welfare function of the government.

OBJECTIVEThe objective of the following study is to understand comprehensively the Price Floor phenomenon, its underlying principle of Equilibrium and the function of the Indian government in setting minimum support price for the farmers in today’s Indian agricultural scenario.

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AREA OF STUDY Price Floor: A brief introduction Understanding the principle

Equilibrium Government’s role and function

Minimum Support Price (MSP) Price Floor in the Indian Agriculture scenario.

SOURCES OF STUDY REFERRED

Internet: Wikipedia Investopedia economics.fundamentalfinance.com Indiabudget.nic.in

Books: Modern Economic Theory: KK Dewett Principles of Micro economics( vol 1): N. Gregory Mankiw And other articles on Price Floor.

Submitted byKunal Sharma

2013 BALLB 63