- Definition: Price subsidies are provided by selling products at below market price.
- Benefits to Consumers:
- Help households fight inflation and price volatility.
- Make essential goods more affordable.
- Benefits to Producers:
- Can ensure a guaranteed market for their produce (e.g., MSP for farmers).
- Can provide a fixed return on investment (e.g., Retention Pricing Scheme for fertilizers).
- Can reduce input costs for producers.