Objective of Agriculture Price Policy

The stability of agriculture price is essential since the higher agriculture prices affect purchasing power of consumers and greater input cost to the industrial users. The reduction in the purchasing power of the consumer has implication on demand for industrial goods. The broad objectives of agriculture price policy in India are:

♤ To set remunerative prices with a view to encourage higher investment and production in the agriculture.

♤ To set the prices at levels so that the consumers are not adversely affected.

♤ Agriculture prices should be such that the terms of trade between agriculture and non- agriculture sector is not adversely affected.

♤ To set price in such a manner so that optimal crop mix can be achieved.