What is Minimum Import Price (MIP)?

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About Minimum Import Price (MIP):

What is MIP? MIP is a temporary measure to provide protection to domestic farmers from predatory pricing of imports. Below this price, import of the commodity is not allowed.
Directorate General of Foreign Trade (DGFT ) is an arm of the commerce ministry which frames rules related to exports and imports.
MIP for Apples:
- It aims to protect their interests by preventing tax-free imports of apples from other countries, ensuring a level playing field for the local apple industry.
- According to the policy, any apple costing less than Rs 50 per kg cannot be imported.
Benefits:
- It will help stabilize apple prices in the local market by reducing the oversupply of cheap imported apples.
- This stability will enable local farmers to fetch better prices for their produce.

Q1) What is a commodity example?

A commodity, also called primary product or primary good, is a good sold for production or consumption just as it was found in nature. Commodities include crude oil, coal, copper or iron ore, rough diamonds, and agricultural products such as wheat, coffee beans or cotton; they are often traded on commodity exchanges.

Source: Govt introduces Minimum Import Price for apples in J&K to support local growers