Indian Economy | Indian Economy for UPSC CSE PDF Download

 Page 1


Agriculture Price Policy
Page 2


Agriculture Price Policy
? Agricultural Price Policy in India emerged in the context of food scarcity and
price fluctuations provoked by drought of mid-sixties and war with Pakistan.
? The policy was framed keeping in view three different angles, viz.,
i. providing food grains for the Public Distribution System,
ii. ensuring reasonable (affordable to consumers) prices for food grains, and
iii. Inducing adoption of the new technology.
?
Page 3


Agriculture Price Policy
? Agricultural Price Policy in India emerged in the context of food scarcity and
price fluctuations provoked by drought of mid-sixties and war with Pakistan.
? The policy was framed keeping in view three different angles, viz.,
i. providing food grains for the Public Distribution System,
ii. ensuring reasonable (affordable to consumers) prices for food grains, and
iii. Inducing adoption of the new technology.
?
? 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.
? To ensure reasonable relationship between prices of
agricultural commodities and manufactured goods.
Page 4


Agriculture Price Policy
? Agricultural Price Policy in India emerged in the context of food scarcity and
price fluctuations provoked by drought of mid-sixties and war with Pakistan.
? The policy was framed keeping in view three different angles, viz.,
i. providing food grains for the Public Distribution System,
ii. ensuring reasonable (affordable to consumers) prices for food grains, and
iii. Inducing adoption of the new technology.
?
? 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.
? To ensure reasonable relationship between prices of
agricultural commodities and manufactured goods.
? To smooth seasonal and cyclical fluctuations of prices of
agricultural commodities.
? To remove price difference between tworegions.
? To make available foodtoconsumers in the time ofshortage.
? To increase the production and exports ofagricultural product.
? To provide raw material tothe industries at reasonable price.
Page 5


Agriculture Price Policy
? Agricultural Price Policy in India emerged in the context of food scarcity and
price fluctuations provoked by drought of mid-sixties and war with Pakistan.
? The policy was framed keeping in view three different angles, viz.,
i. providing food grains for the Public Distribution System,
ii. ensuring reasonable (affordable to consumers) prices for food grains, and
iii. Inducing adoption of the new technology.
?
? 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.
? To ensure reasonable relationship between prices of
agricultural commodities and manufactured goods.
? To smooth seasonal and cyclical fluctuations of prices of
agricultural commodities.
? To remove price difference between tworegions.
? To make available foodtoconsumers in the time ofshortage.
? To increase the production and exports ofagricultural product.
? To provide raw material tothe industries at reasonable price.
? To ensure stability in price of agriculture products.
? To ensure constant usage of modern inputs in agriculture, it is 
necessary that farmers are assured minimum price for their produce.
? Due to specific nature of agriculture products, there are many 
difficulties in agriculture marketing, such as perishability, problems of 
storage etc;
? Price policy is important for proper crop planning.
? To prevent exploitation of farmers from zamindars etc; in absence of 
price policy person may purchase products at very low price.