Write an Essay on Agricultural
Price Policy.
•
To smooth
seasonal and cyclical fluctuations of prices of agricultural commodities.
•
To remove
price difference between two regions.
•
To make
available food to consumers in the time of shortage.
•
To
increase the production and exports of agricultural product.
•
To
provide raw material to the industries at reasonable price.
•
To meet
the domestic consumption requirement.
•
To
provide price stability in the agricultural product.
•
To ensure
reasonable relation between the prices of food grains and non food grains and
manufacturing commodities
The Commission of
Agricultural Cost and Prices while recommending MSP takes the following factors
into account:
Cost of Production
Change in Input
prices
Change in Market
prices
Inter-crop market
price parity
Demand and supply
situation
Effect on industrial
cost structure
Effect on general
price level
Cost of living
International market
price situation
Parity between prices
paid and prices received
Disadvantages of the
MSP:
Ø Limited coverage
Ø To increase the income of the farmer
poor of the country have to pay more. This practice will create the problem
of allocate inefficiency in the country.
Ø Subsidizing farmers through higher
product prices is an inefficient method because it penalizes the consumer with
higher prices. Also it means the large farmers will benefit the most.
Ø Farmers use chemical fertilisers to
produce more and earn more and more.
The policy is not in
the favour of poor farmers
I loved as much as you'll receive carried out right here. The sketch is attractive, your authored subject matter stylish. nonetheless, you command get got an edginess over that you wish be delivering the following. paper price index
ReplyDelete