Being student of economics identify appropriate price policy measure which government can opt to motivate the farmers and increase agricultural productivity. Logically discuss how the identified price policy will boost the agricultural production. ?
Answers
The price policy boosting the agricultural production.
In economics, we have a price ceiling and price floor that can help the producers and the consumers. A price ceiling is the mandated maximum amount a seller is allowed to charge for a product or service. Usually set by law, price ceilings are typically applied only to staples such as food and energy products when such goods become unaffordable to regular consumers.
On the other hand, price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low. The most common price floor is the minimum wage--the minimum price that can be payed for labor. Price floors are also used often in agriculture to try to protect farmers.
As a student if the price floor is set and implemented strictly by the government to each country it will boost our agricultural production. The farmers will plant more because their crops will be sold at justified price that will help and encourage them to plant more in the future.
Price policy of the government for agricultural produce seeks to ensure remunerative prices to growers for their produce in order to encourage higher investment and production.
Explanation:
- Price policy of the Government also safeguarding the interests of the consumer.
- It is providing available food supplies to consumer at reasonable prices.
- Since independence agricultural price policy was followed in India.
- The price policy was differ from crop to crop and year to year.
- It create emphasis on the prices of wheat, rice and coarse cereals (jowar, bajra) maize etc.
- The main objective of the price policy in India was to protect the interests of consumers.
- Subsidies, low-interest loan and guaranteed price can raise the quantity of farming output (yield).These are some the Government policies.
To Learn More...
1.Governments get involved in agricultural output markets to stabilize prices of agricultural goods so that producers get reasonable prices. Pakistan’s agriculture sector recorded a slow growth rate of 0.85 percent during the last fiscal year (2018-19). It’s very important to enhance agricultural production to increase farmers’ income, imports reduction and to expand export base of the country. The National Agriculture Emergency Program plans to spend Rs.290 billion in the next five years to boost the sector. The program will be implemented with the coordination of all provinces to improve productivity of major crops i.e. wheat, sugarcane, cotton, rice etc.
Requirement: Being student of economics identify appropriate price policy measure which government can opt to motivate the farmers and increase agricultural productivity. Logically discuss how the identified price policy will boost the agricultural production.
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