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The impact of two-tier producer and consumer food pricing in India (Inglés)

India's government buys wheat, rice, and sugar at below the market price and then sells it in ration shops in the urban and rural areas. The rest is sold in the open market. This creates a two-tier price system for consumers and producers. Supporters of the government's procurement policy claim that it raises the open-market price so much that it increases the sales-weight average of the rationed price and the open-market price; in that case...
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