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Farm Income in IndiaMyths and Realities$
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A. Narayanamoorthy

Print publication date: 2021

Print ISBN-13: 9780190126131

Published to Oxford Scholarship Online: January 2021

DOI: 10.1093/oso/9780190126131.001.0001

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Has Agricultural Price Policy Benefitted Paddy Farmers?

Has Agricultural Price Policy Benefitted Paddy Farmers?

(p.77) 4 Has Agricultural Price Policy Benefitted Paddy Farmers?
Farm Income in India

A. Narayanamoorthy

Oxford University Press

This chapter looks at the impact of support price policy on the income from paddy crop. Markets for agricultural produces in India are mostly unorganized and distorted where farmers are often scrupulously exploited. Also since the elasticity of demand for agricultural commodities particularly foodgrains is less than unit, increased production during bumper harvest brings down the prices of agricultural commodities sharply. But, the support price provided to paddy has come under severe scrutiny for various reasons in recent years. Farmers have been demanding for higher support price for paddy but some economists argue that increase in paddy price is ‘dirty economics and dirtier politics’. With the help of time series data, chapter 4 provides an elegant analysis whether the support price scheme has helped paddy cultivating farmers in terms of increasing their income.

Keywords:   support price scheme, agricultural produce market, elasticity of demand, bumper harvest, time series data

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