Agricultural price stabilization and Measures for stabilization

Agricultural price stabilization and Measures for stabilization of agricultural prices

Agricultural price stabilization

Agricultural price stabilization means reduction in price fluctuations and regulation of price movements within a certain range. It does not imply constant prices or an unchanging price level. The objective of price stabilization should be to check price fall below a certain minimum level and price rise above a certain maximum level. The range within which fluctuations in prices are to be regulated is determined by a country or government.
 
Measures for stabilization of agricultural prices: 
The measures adopted for stabilizing agricultural prices vary considerably, depending on the economic circumstances and the objectives sought to be achieved. A list of measures adopted by government for stabilization of agricultural prices is given below:
 
A. Non-price regulatory measures 
i) Increasing and stabilizing agricultural production;
ii) Regulating imports;
iii) Regulating exports;
iv) Encouraging agro-processing industries;
v) Building up buffer stocks;
vi) Ensuring procurement and public distribution;
vii) Regulating inter-regional movement of commodities;
viii) Rationing
ix) Expanding infrastructure
x) Improving the efficiency of the marketing system
 
B. Direct price control measures 
i) Fixation of maximum or ceiling price;
ii) Fixation of minimum floor price
iii) Fixation of both maximum and minimum price;
iv) Fixation of an administered price

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Important Agricultural Websites

Online Agricultural Study

Food and Agricultural Organization

United States Department of Agriculture

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