Persistent surplus:

The persistent surplus created by price floor will in turn pose the following problems to producers of the good:

(i) It brings about a lot of frustrated sellers wishing to dispose off surplus supplies.

(ii) The sellers out of frustration, undercuts the legal minimum price from the diagram, sellers when frustrated may be willing to sell the commodity at PBM, which is well below the equilibrium market price.

(iii) The sellers will allocate quotas among themselves

(iv) There will be buyers' preferences as they choose whom to buy from.

(v) It brings about conditional sales. The good with surplus may be sold with others that are in shortage.

 
To make minimum price control policies achieve their aim certain policies should be adopted by the government concurrently:

(i) Government may increase incomes of consumers so that they can buy more if the commodity is a normal good, and/or increase consumption of the commodity through advertisements and other sales promotions.

(ii) The government enters the market after setting the price floor to buy the surpluses, store and sell from its own stock piles during times of shortage.

(iii) Financial institutions may make funds available for private individuals to buy and store the surpluses and sell them during lean season.

(iv) The surpluses could be exported to needy countries.The government could promote such exports by creating incentives for exports.