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<link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67fff1db687b0-trace').style.display = (document.getElementById('cakeErr67fff1db687b0-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67fff1db687b0-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67fff1db687b0-code').style.display = (document.getElementById('cakeErr67fff1db687b0-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67fff1db687b0-context').style.display = (document.getElementById('cakeErr67fff1db687b0-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67fff1db687b0-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700"><</span><span style="color: #0000BB">head</span><span style="color: #007700">>
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<span class="code-highlight"><code><span style="color: #000000"> <link rel="canonical" href="<span style="color: #0000BB"><?php </span><span style="color: #007700">echo </span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">); </span><span style="color: #0000BB">?><?php </span><span style="color: #007700">echo </span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?><?php </span><span style="color: #007700">echo </span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-></span><span style="color: #0000BB">category</span><span style="color: #007700">-></span><span style="color: #0000BB">slug</span><span style="color: #007700">; </span><span style="color: #0000BB">?></span>/<span style="color: #0000BB"><?php </span><span style="color: #007700">echo </span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-></span><span style="color: #0000BB">seo_url</span><span style="color: #007700">; </span><span style="color: #0000BB">?></span>.html"/>
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-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/">click here</a> to read more. <br />
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<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/">click here</a> to read more. <br />
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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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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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<strong>Food for reform -Ramesh Chand & Jaspal Singh</strong></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 — 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> </font>
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-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/">click here</a> to read more. <br />
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<br />
<em>Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.<br />
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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/">click here</a> to read more. <br />
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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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<strong>Food for reform -Ramesh Chand & Jaspal Singh</strong></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 — 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> </font>
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<link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67fff1db687b0-trace').style.display = (document.getElementById('cakeErr67fff1db687b0-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67fff1db687b0-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67fff1db687b0-code').style.display = (document.getElementById('cakeErr67fff1db687b0-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67fff1db687b0-context').style.display = (document.getElementById('cakeErr67fff1db687b0-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67fff1db687b0-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700"><</span><span style="color: #0000BB">head</span><span style="color: #007700">>
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-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/">click here</a> to read more. <br />
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<br />
<em>Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.<br />
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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/">click here</a> to read more. <br />
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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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<strong>Food for reform -Ramesh Chand & Jaspal Singh</strong></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 — 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> </font>
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-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 — 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/">click here</a> to read more. <br />
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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<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 — 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/">click here</a> to read more. <br />
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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,...'
$disp = '<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 — 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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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.
