Agricultural and Farming Price Policy

Home Agricultural and Farming Price Policy

This very policy run by the Government of India has the objective of granting remunerative prices for the agricultural produce to the producers. This enables them to invest more in this sector leading to higher production in the same. The government announces minimum support prices at which the essential agricultural products can be availed by the consumers. These prices are fixed only after receiving the recommendations from the CACP i.e. the Commission for Agricultural Costs and Prices. The recommendation of the prices depends upon a large number of factors such as:

Production cost
Demand and Supply
Recent trends in the market prices
Fluctuation in input prices
Parity between input and output prices
Inter-crop price equality
Terms of Trade
Industrial Cost Structure
Cost of Living
International Market Price

Various cooperative agencies like CCI, JCI, FCI, NAFED, etc. are employed by the Government to organize Price Support Scheme. In case the PSS has not been organized for some products, market intervention is arranged by the government at a price mutually agreed upon. Besides all these, the producers also gain rich dividends. The MSPs have been increased a great deal in the recent years by the government.

Agricutlure Information