Price for agri products

[vsncas]

All are confirming in practice that when the supply increases in the market for any product would have adverse consequence of reduction in price. This is happening in all industrial products. The welfare of the entreprenurs and employess and other people through indirect employment were also simultenously improved. But the same is not happening in agri sector.

As sper the data available, India achieved record out put in all agri products like Rice, Wheat, Pulses, cereals, sugar etc during rhe year 2010-11. But the welfare of the farmers are in the same level and slowly declined due to inflation. Why the govt. is not properly addressing this issue and what are steps taken by the Govt.?

You can copy the answer from theThailand government. It announced the prices of the rice to farmers alomost double the previous year price. We need not pass the effect of the same to the public. This can be routed through the subsidy to the eligible farmers dirctly.

V.Senthilnathan