Question

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;

• 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 of Policies;

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

Answer 2

Price Policy

Explanation:

It becomes imperative for the government to establish a Price Policy for agricultural products in order to safeguard the interests of the farmers as well as the consumers. The price policy will differ from crop to crop and year to year. It creates an emphasis on the prices of wheat, rice and coarse cereals (jowar, bajra, maize) etc. The aim of establishing a price policy is to provide available food supplies to consumer at reasonable prices, at the same time encourage and motivate farmers to increase their productivity. Subsidies, low-interest loans and guaranteed pricing will help motivate the farmers as well as protect them from loses, thus protecting them from adverse events.