Revitalizing agricultural price mechanisms: A review and call for enhancement

Abstract

Indian agriculture has long faced criticism for its lack of a strong price policy, which leaves farmers at the mercy of changes in the market. Although it has been implemented for a few commodities, the minimum support price (MSP) system has not been all-encompassing nor has the implementation of market intervention measures yielded much respite. This study makes the case that a thoughtful combination of the private investments and market intervention schemes (MIS) along with existing regimes of MSP could provide greater results. A strategy like this might offer farmers greater all-encompassing assistance while guaranteeing reasonable prices and stable markets. This study has reviewed two key existing frameworks by examining their strengths and flaws. Based on this analysis, it is possible to move forward by incorporating the best aspects of MIS and MSP. In addition to addressing the long-standing issues Indian farmers confront, this strategy could result in a more egalitarian and sustainable agriculture industry.