Price Policy : It is well known that, in India, prices of agricultural commodities fluctuate from time to time. It is mainly due to factors like supply (seasonal production) situation, many times affected by vagaries of nature, hoarding by the traders, etc. While the demand remains more or less constant. Another important reason is that there is no control over the acreage under a particular crop. Cultivators are free to have any acreage i.e. any amount of production. These fluctuations in prices adversely affect both farmers and the consumers. Price stability is necessary for the progress of agriculture. Stable prices means that the prices should be beneficial to both producers and consumers. In order to bring in stability in prices of agricultural commodities, Govt. adopts three important measures viz. Minimum support price, Buffer stock, and in exceptional circumstances, the import of the commodity. |
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