NATIONAL LAW INSTITUTE UNIVERSITY BHOPAL

ECONOMICS PROJECT SYNOPSIS

On
PRICE FLOOR:
MINIMUM SUPPORT PRICE and
INDIAN AGRICULTURE

Submitted to
Prof Rajesh Gautam
Submitted by
Kunal Sharma
2013 BALLB 63

INTRODUCTION
Price 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.

OBJECTIVE
The 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 todays Indian agricultural scenario.
Insert RoL Here.

AREA OF STUDY
Price Floor: A brief introduction
Understanding the principle
Equilibrium
Governments 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 by
Kunal Sharma
2013 BALLB 63