The prices at which the government purchases food grains for maintaining the public distribution system and for building up buffer-stock is known as

Show the answer and explanation

Answer: (b) procurement prices

The price the government pays to buy for PDS and buffer stock is the procurement price.

Why the others are wrong

(a) MSP is the floor promise; purchases are made at the procurement price (in practice, MSP now).

(c) Issue price is what the government charges when it sells to PDS.

(d) Ceiling prices cap what sellers can charge.

Today MSP and procurement price are the same number, so (a) tempts. The textbook term for buying is procurement price.

🔒 Procurement price (buy) · Issue price (sell) · MSP (floor).