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CH 18

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16 views

CH 18

Uploaded by

Dr.Shaifali Garg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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BUSINESS ENVIRONMENT

Chapter 18
PRICE AND DISTRIBUTION
CONTROLS
Chapter 18
Price and Distribution Controls

Objectives of Price and Distribution


Controls
1. Equity or Distributive Justice
2. Maintain Quality of Goods and Services
3. Prevention of Monopolistic, Restrictive and Unfair Trade
Practices
4. Augmentation of Supply
5. Enlargement and Smoothening of the Supply System
6. Supply of Inputs to Priority Sectors
7. Resource Allocation
8. Prevention of Hoarding and Blackmarketing
9. Control of Inflation and Deflation

Business Environment
Himalaya Publishing House Francis Cherunilam
Chapter 18
Price and Distribution Controls

Price Controls
 INDIRECT CONTROLS
Indirect controls are exercised mainly through the
monetary policy, fiscal policy and commercial (foreign
trade) policy.
 DIRECT CONTROLS
Direct controls work through legislative and
administrative measures.

Business Environment
Himalaya Publishing House Francis Cherunilam
Chapter 18
Price and Distribution Controls

Administered Prices

The term administered price often refers to the government


determined price.
Administered prices were generally fixed on the
recommendations of an expert body.
The principal aim of the administered price system is the
protection of the interests of both the producers and
consumers.

Business Environment
Himalaya Publishing House Francis Cherunilam
Chapter 18
Price and Distribution Controls

Dual Pricing

 Some commodities like sugar, cotton textiles, paper and


aluminium were subject to dual pricing in India in the
past.

Business Environment
Himalaya Publishing House Francis Cherunilam
Chapter 18
Price and Distribution Controls

Subsidisation

 Prices of certain commodities are directly affected by the


policy of subsidisation.
 The principal objective of subsidies is the protection of
weaker sections and priority sectors.

Business Environment
Himalaya Publishing House Francis Cherunilam
Chapter 18
Price and Distribution Controls

The Essential Commodities Act

 The main purpose of the Essential Commodities Act,


1955, was to provide, in the interest of the general public,
for the control of the production, supply and distribution
of, and trade and commerce in, certain commodities.
 This Act empowers the Central Government to regulate or
prohibit the production, supply and distribution of, and
trade and commerce in, any essential commodity.

Business Environment
Himalaya Publishing House Francis Cherunilam
Chapter 18
Price and Distribution Controls

The Public Distribution System

 Public Distribution System (PDS), under which the


government makes available essential mass consumption
goods at reasonable prices, especially to the poor.

Business Environment
Himalaya Publishing House Francis Cherunilam
Chapter 18
Price and Distribution Controls

 In June 1997 the Government launched the Targeted


Public Distribution System (TPDS) by streamlining the
PDS by issuing special cards to the families below the
poverty-line (BPL) and selling essential articles under
PDS to them at specially subsidised prices.

Business Environment
Himalaya Publishing House Francis Cherunilam

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