Question

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.

Answer 1

Explanation:

In order to motivate farmers and boost production, the government should take following initiatives;

Policies

• Cut down the middle distributor and provide a direct sale from farmers to government to give farmers the maximum price for their crops.
• Subsidize the value of fertilisers to farmers
• Give bonuses to farmers that yield highest production from their farms

Impact

Now all these measures will encourage farmers to get better production, because the more they produce the more they can sell and get more money out of this

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