A payment that a government makes to a producer to supplement the market price of a commodity is known as ____.

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A payment that a government makes to a producer to supplement the market price of a commodity is known as a Subsidy.
1)      A sum of money granted by the state or a public body to help an industry or business keeps the price of a commodity or service low.
2)      The objective of the subsidy is to bolster the welfare of society. It is a part of the non-plan expenditure of the government.
3)      The Major subsidies in India are petroleum subsidies, fertiliser subsidies, food subsidies, interest subsidies, etc.
4)      The government gives a subsidy to groups and individuals, usually in the form of cash payment or tax reduction. The allowance is given to remove some burden and is often considered to be in the public's interest.

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