From 50 Years Ago (16 April 2006)

other crops also, the extension of the same actually been no fall in parity, he said, only FROM 50 YEARS AGO facilities may be expected in due course. The the differential advantage which agriculturists other short-term measure contemplated for enjoyed until last year has now disappeared. price support, besides direct purchases in This presumes a knowledge of the movement specified areas where prices tend to fall below of price parities into which, however, the the minimum, is the removal of restrictions Agricultural Secretary has not taken the public on internal movement while long-term mea-into confidence. Some of the components of Vol VII No 16, April 16, 1955 sures include improvement of rural credit, the price parity that he had in mind, however, greater development in rural areas including, he very obligingly specified, e g, prices of Minimum Prices for naturally, that of cottage industries in order such manufactured articles as iron, steel,Foodgrains to raise the purchasing power of villages and cement, cloth and kerosene. But is he quite (Editorial) the large-scale of construction of storage certain that taking availabilities also into accommodation to enable Government to consideration, and not only the prices, the Price parity or cost of production, what is purchase and store surpluses in good years agriculturist had such a high differential in the basis of the floor prices which the Govern-for utilisation in bad years. The floors, how-his favour which now only he has lost? True, ment of India has fixed for wheat, rice, bajra, ever, have been fixed at a level at which since parity is a ratio, it can be adjusted as jowar and maize? Twelve crores of rupees, Government is not likely to be called upon much by raising agricultural prices as by it has been announced, will be advanced for to come forward and buy except perhaps in reducing the prices of the things which the the purchase of wheat to the Governments of pockets of acute distress. agriculturists buy. But action at the latter end the principal wheat-growing States in case On the question of parity, the Secretary of in the past has not proved a conspicuous prices tend to drop below this floor. This is the Ministry of Food and Agriculture sought success; nor is it likely to prove any more only for wheat, for the present, but no doubt, to correct a popular misconception