Pricing of Agricultural Produce Flashcards
Q. What were the factors responsible for the price rise in Tomato ?
Ans : 1. Erratic weather conditions : relatively high summer temperatures and unusually sharp rain spells.
2. Low prices of tomatoes in the april-may cycle : farmers in other places switched to other crops owing to higher prices .
3. Virus impact : Cucumber/tomato mosaic virus, both viruses can cause almost 100% crop loss unless adequately treated promptly.
Q. What are some challenges in Agri Produce Pricing ?
Ans : 1. Climate change .
2. Input subsidies and inflation : Fluctuations in input subsidies such as fertiliser, seed, power subsidies etc .
3. Distorted MSP procurement : MSP is announced for 22 crops, actual procurement is done on a large scale for rice and wheat .
4. Crop diseases.
5. Effect of global market : Russia-Ukraine conflict, global economic uncertainties etc.
6. Available infrastructure and technology: low prevalence of mechanised tools, use of weather data, scientific production methods, post-harvest infrastructure, processing and transportation facilities etc.
Q. Explain the mechanism for price monitoring and control .
Ans : 1. Price Monitoring Division (PMD) : under dept of consumer affairs monitors the prices of selected essential commodities .
- analyses the price situation and gives advance feedback for taking preventive measures.
- implements market intervention schemes.
2. Operation Greens : to promote FPOs, agri-logistics, processing facilities and professional management.
- covers 22 perishable crops including TOP.
3. Essential Commodities Act, 1955 : empowers central govt to control the production, supply, distribution, trade and commerce of certain commodities .
- it can impose stock limited on essential commodities to regulate their prices and availability in the market .
Q. What are some recommendations/ way forwards ?
Ans : 1. Adoption of Climate Resilient Agriculture.
2. Improved price monitoring : using data collected through e-NAM scheme.
3. Incentives for diversification.
4. Crop disease management .
5. Increased Technology use : Using space technology for real-time weather advisory, use of data science and block chain systems in agricultural marketing etc.
6. Post harvest infrastructure creation : warehousing, cold storage, processing facilities, and multimodal transportation .
