price stabilization agreements

Price stabilization agreements are arrangements between producers and buyers or governments to keep the prices of certain goods, like agricultural products or resources, within a specific range. The goal is to prevent prices from falling too low, which can harm producers’ income, or rising too high, which can make goods unaffordable. These agreements may involve strategies like producers collectively setting minimum or maximum prices, storage, or government interventions. By doing so, they aim to promote stable markets, ensure steady incomes for producers, and protect consumers from price volatility.