Demerits of price control

Minimum price leads to the production of unmanageable surplus output i.e. problems of storage will arise in case of minimum prices.
Maximum price reduces the incentives for the private entrepreneurs leading to a slow rate of economic growth, especially when maximum prices are imposed.
Maximum price leads to unemployment due to reduced investment in the economy.
Maximum price leads to shortages in supply due to increased demand when a maximum price is fixed.
It leads to inefficient allocation of resources due to interference with price mechanism.
There are high administrative costs of enforcing price control, especially with maximum price i.e. expensive to enforce.
It limits the consumer's from consuming the quantities they want through ration especially with maximum price.
Maximum price encourages malpractices e.g. smuggling, black markets, hoarding etc
It leads to increase in the costs of production, especially with minimum price
It leads to reduction in the social welfare because of the high cost of the living, when minimum prices are imposed .

It leads to production at excess capacity and underutilization of resources.