Consider the following statements regarding Minimum Exports Price 1 It is the price below which an e...........

Economic Affairs Foreign Trade - Trends and Policy

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Consider the following statements regarding Minimum Exports Price

1.It is the price below which an exporter is not allowed to export the commodity from India.

2.The Department of Commerce is the nodal agency to fix minimum export price of various products from time to time.

3.It is a kind of quantitative restriction to trade.

Which of the statements given above is/are correct?

1 only

3 only

1 and 3 only

2 and 3 only

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Explanation:

1 and 3 only

Statement 1 is correct. Minimum Export Price (MEP) is indeed the price below which an exporter is not allowed to export the commodity from India. It is a measure implemented by the government to ensure stability in domestic markets, prevent the dumping of goods, and protect the interests of domestic producers.

Statement 2 is incorrect. While the Department of Commerce may play a role in export-related policies and regulations, the fixation of Minimum Export Price (MEP) is usually done by other government bodies, such as the Directorate General of Foreign Trade (DGFT).

Statement 3 is correct. Minimum Export Price (MEP) is considered a form of quantitative restriction on trade because it limits the quantity of goods that can be exported below a certain price threshold.