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;
ix) Expanding infrastructure
x) Improving the efficiency of the marketing system
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