ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Wheat Story-Recent Changes in Price Policy

Recent Changes in Price Policy V M Rao Have the large increases in the minimum support price for wheat made in the current and the preceding seasons raised it to a level difficult to sustain in future? There are some alarm signals which should cause anxiety OWING to its remarkable production performance since the late 60s, wheat has rightly come to be regarded as the crop which best symbolises the green revolution in Indian agriculture. But even a benign revolution like the green revolution which raises agricultural production to levels unheard of in the past brings in its trail painful problems of adjustment. When production accelerates, coping with surpluses poses problems in an economy reared on a prolonged past deprived of growth. On the other hand, once the economy gets addicted to growth, slowing down in the surge in production hurts even more leading to policy responses which may be unavoidable in the short run but hinder reforms needed for the period beyond. Here we shall attempt to put in a pattern the recent changes observed in the price policy for wheat to illustrate the dilemma faced by the policy-maker in a situation of slowing down in the production of a commodity after a long phase of rapid growth.

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