Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
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Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Food for reform -Ramesh Chand &amp; Jaspal Singh    </title>
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-The Indian Express

Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.

EXTREME volatility in the prices of some food commodities has, in recent years, been hurting producers as well as consumers,..."/>
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-The Indian Express

Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.

EXTREME volatility in the prices of some food commodities has, in recent years, been hurting producers as well as consumers,..." />
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                            <div align="justify">-The Indian Express<br /><br /><em>Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.<br /></em><br />EXTREME volatility in the prices of some food commodities has, in recent years, been hurting producers as well as consumers, while also disrupting certain economic activities. The reason for this appears to be the waning influence of non-price factors (technology, irrigation, extension) in driving growth, and the role of prices having become stronger. There is clear evidence at the global level to show that till mid-2000, the trend in output growth drove price trend (higher growth associated with lower price) but during the last 10 years, price trends have driven output growth. The so-called Cobweb phenomenon is becoming more apparent, leading to a price-production spiral. In this context, it is important to look at the price stabilisation policy and measures adopted by India from time to time, and draw lessons to maintain a stable price environment that benefits both producers as well as consumers.<br /><br />Price instability at the macro-level is caused by supply shocks. Trading and stocking up are the two options to stabilise supply and by extension, prices. India has historically relied heavily on buffer stock to maintain price stability in staple food, though this policy has come under attack from supporters of free trade, who feel stocking up is a costlier option for price stabilisation. Experience, however, shows that it is often trade that is more expensive. Take the case of wheat in which international prices rose sharply when India entered the market to import the crop and augment its domestic supply.<br /><br />It was due to its policy of maintaining buffer stock that India ensured remarkable price stability during the global food crisis, when almost all countries, including the developed ones, faced a steep price rise. Should India then use a similar option to achieve price stability in pulses, which have shown extreme volatility in the last three years?<br /><br />Some gains from the steps taken by the government to create a buffer stock of pulses are already visible. The buffer stock, mainly aimed at stabilising consumer prices, has made it possible to procure pulses. Last year, India recorded an unprecendented 40 per cent increase in total pulses production over the previous year. The increase was 87 per cent for arhar (tur) dal. This kind of spike in production would have led to a serious crash or even a collapse in prices had the government not intervened &mdash; the Central agencies procured 14.7 lakh tonnes of kharif pulses. Nevertheless, farm harvest prices of some pulses dropped well below the MSP in 2016-17, but the shortfall was similar to what has been witnessed quite often in the past, even during years of normal growth in production. For instance, the farm harvest price of arhar in 2013-14 was 14 per cent below MSP in Karnataka and 7 per cent in Maharashtra; the two states account for half of the total tur production.<br /><br />Please <a href="http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/" title="http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/">click here</a> to read more. <br /></div>                                                           
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    <br><a href="http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/" class="re" target="_blank">The Indian Express, 20 October, 2017, http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/</a><div class="clear"></div>
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Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.

EXTREME volatility in the prices of some food commodities has, in recent years, been hurting producers as well as consumers,..."/>
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    <h1 class="cat-box-title">Food for reform -Ramesh Chand &amp; Jaspal Singh</h1>
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                            <div align="justify">-The Indian Express<br /><br /><em>Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.<br /></em><br />EXTREME volatility in the prices of some food commodities has, in recent years, been hurting producers as well as consumers, while also disrupting certain economic activities. The reason for this appears to be the waning influence of non-price factors (technology, irrigation, extension) in driving growth, and the role of prices having become stronger. There is clear evidence at the global level to show that till mid-2000, the trend in output growth drove price trend (higher growth associated with lower price) but during the last 10 years, price trends have driven output growth. The so-called Cobweb phenomenon is becoming more apparent, leading to a price-production spiral. In this context, it is important to look at the price stabilisation policy and measures adopted by India from time to time, and draw lessons to maintain a stable price environment that benefits both producers as well as consumers.<br /><br />Price instability at the macro-level is caused by supply shocks. Trading and stocking up are the two options to stabilise supply and by extension, prices. India has historically relied heavily on buffer stock to maintain price stability in staple food, though this policy has come under attack from supporters of free trade, who feel stocking up is a costlier option for price stabilisation. Experience, however, shows that it is often trade that is more expensive. Take the case of wheat in which international prices rose sharply when India entered the market to import the crop and augment its domestic supply.<br /><br />It was due to its policy of maintaining buffer stock that India ensured remarkable price stability during the global food crisis, when almost all countries, including the developed ones, faced a steep price rise. Should India then use a similar option to achieve price stability in pulses, which have shown extreme volatility in the last three years?<br /><br />Some gains from the steps taken by the government to create a buffer stock of pulses are already visible. The buffer stock, mainly aimed at stabilising consumer prices, has made it possible to procure pulses. Last year, India recorded an unprecendented 40 per cent increase in total pulses production over the previous year. The increase was 87 per cent for arhar (tur) dal. This kind of spike in production would have led to a serious crash or even a collapse in prices had the government not intervened &mdash; the Central agencies procured 14.7 lakh tonnes of kharif pulses. Nevertheless, farm harvest prices of some pulses dropped well below the MSP in 2016-17, but the shortfall was similar to what has been witnessed quite often in the past, even during years of normal growth in production. For instance, the farm harvest price of arhar in 2013-14 was 14 per cent below MSP in Karnataka and 7 per cent in Maharashtra; the two states account for half of the total tur production.<br /><br />Please <a href="http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/" title="http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/">click here</a> to read more. <br /></div>                                                           
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    <br><a href="http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/" class="re" target="_blank">The Indian Express, 20 October, 2017, http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/</a><div class="clear"></div>
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Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.

EXTREME volatility in the prices of some food commodities has, in recent years, been hurting producers as well as consumers,..."/>
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-The Indian Express

Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.

EXTREME volatility in the prices of some food commodities has, in recent years, been hurting producers as well as consumers,..." />
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                            <div align="justify">-The Indian Express<br /><br /><em>Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.<br /></em><br />EXTREME volatility in the prices of some food commodities has, in recent years, been hurting producers as well as consumers, while also disrupting certain economic activities. The reason for this appears to be the waning influence of non-price factors (technology, irrigation, extension) in driving growth, and the role of prices having become stronger. There is clear evidence at the global level to show that till mid-2000, the trend in output growth drove price trend (higher growth associated with lower price) but during the last 10 years, price trends have driven output growth. The so-called Cobweb phenomenon is becoming more apparent, leading to a price-production spiral. In this context, it is important to look at the price stabilisation policy and measures adopted by India from time to time, and draw lessons to maintain a stable price environment that benefits both producers as well as consumers.<br /><br />Price instability at the macro-level is caused by supply shocks. Trading and stocking up are the two options to stabilise supply and by extension, prices. India has historically relied heavily on buffer stock to maintain price stability in staple food, though this policy has come under attack from supporters of free trade, who feel stocking up is a costlier option for price stabilisation. Experience, however, shows that it is often trade that is more expensive. Take the case of wheat in which international prices rose sharply when India entered the market to import the crop and augment its domestic supply.<br /><br />It was due to its policy of maintaining buffer stock that India ensured remarkable price stability during the global food crisis, when almost all countries, including the developed ones, faced a steep price rise. Should India then use a similar option to achieve price stability in pulses, which have shown extreme volatility in the last three years?<br /><br />Some gains from the steps taken by the government to create a buffer stock of pulses are already visible. The buffer stock, mainly aimed at stabilising consumer prices, has made it possible to procure pulses. Last year, India recorded an unprecendented 40 per cent increase in total pulses production over the previous year. The increase was 87 per cent for arhar (tur) dal. This kind of spike in production would have led to a serious crash or even a collapse in prices had the government not intervened &mdash; the Central agencies procured 14.7 lakh tonnes of kharif pulses. Nevertheless, farm harvest prices of some pulses dropped well below the MSP in 2016-17, but the shortfall was similar to what has been witnessed quite often in the past, even during years of normal growth in production. For instance, the farm harvest price of arhar in 2013-14 was 14 per cent below MSP in Karnataka and 7 per cent in Maharashtra; the two states account for half of the total tur production.<br /><br />Please <a href="http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/" title="http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/">click here</a> to read more. <br /></div>                                                           
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    <br><a href="http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/" class="re" target="_blank">The Indian Express, 20 October, 2017, http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/</a><div class="clear"></div>
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Home हिन्दी

Food for reform -Ramesh Chand & Jaspal Singh

Published on Oct 21, 2017   Modified on Oct 21, 2017

-The Indian Express Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms. EXTREME volatility in the prices of some food commodities has, in recent years, been hurting producers as well as consumers, while also disrupting certain economic activities. The reason for this appears to be the waning influence of non-price factors (technology, irrigation, extension) in driving growth, and the role of prices having become stronger. There is clear evidence at the global level to show that till mid-2000, the trend in output growth drove price trend (higher growth associated with lower price) but during the last 10 years, price trends have driven output growth. The so-called Cobweb phenomenon is becoming more apparent, leading to a price-production spiral. In this context, it is important to look at the price stabilisation policy and measures adopted by India from time to time, and draw lessons to maintain a stable price environment that benefits both producers as well as consumers. Price instability at the macro-level is caused by supply shocks. Trading and stocking up are the two options to stabilise supply and by extension, prices. India has historically relied heavily on buffer stock to maintain price stability in staple food, though this policy has come under attack from supporters of free trade, who feel stocking up is a costlier option for price stabilisation. Experience, however, shows that it is often trade that is more expensive. Take the case of wheat in which international prices rose sharply when India entered the market to import the crop and augment its domestic supply. It was due to its policy of maintaining buffer stock that India ensured remarkable price stability during the global food crisis, when almost all countries, including the developed ones, faced a steep price rise. Should India then use a similar option to achieve price stability in pulses, which have shown extreme volatility in the last three years? Some gains from the steps taken by the government to create a buffer stock of pulses are already visible. The buffer stock, mainly aimed at stabilising consumer prices, has made it possible to procure pulses. Last year, India recorded an unprecendented 40 per cent increase in total pulses production over the previous year. The increase was 87 per cent for arhar (tur) dal. This kind of spike in production would have led to a serious crash or even a collapse in prices had the government not intervened — the Central agencies procured 14.7 lakh tonnes of kharif pulses. Nevertheless, farm harvest prices of some pulses dropped well below the MSP in 2016-17, but the shortfall was similar to what has been witnessed quite often in the past, even during years of normal growth in production. For instance, the farm harvest price of arhar in 2013-14 was 14 per cent below MSP in Karnataka and 7 per cent in Maharashtra; the two states account for half of the total tur production. Please click here to read more.

The Indian Express, 20 October, 2017, http://indianexpress.com/article/opinion/columns/indian-farmers-food-prices-inflation-indian-economy-food-for-reform-4898307/

Tagged with: Agricultural Production Agricultural Productivity Agricultural Profitability Farmers' Income minimum support price Minimum Support Prices procurement Remunerative Prices

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