price stabilization

Price stabilization involves measures taken by governments or organizations to reduce extreme fluctuations in prices of goods or commodities. It aims to maintain prices within a reasonable range, ensuring that producers earn fair income and consumers can afford essential goods. This can be achieved through interventions like stockpiling supplies, regulating production, or setting price limits. The goal is to prevent market volatility caused by factors like supply shortages or surpluses, speculation, or external shocks, fostering economic stability and predictable market conditions for all stakeholders.