I would like to suggest the solution for farmers’ poor plight and suicidal incidents. In Gujarat or India, there is no proper demand –supply management system for agricultural commodities as we find in industrial commodities. No doubt farm inputs price rise has been more than agricultural commodities price rise in the last some of the years. Agricultural commodities market is absolutely competitive market. The prices are determined in the market on the basis of demand and supply forces only. Therefore farmers are price taker not price maker. At the time of good weather, farmers get better yield but at the same time due to more supply they get less prices for their product. At the time of poor weather naturally they get low or no yield and face the same problem of low revenue. The solution is to develop proper demand supply management system by the separate government department, which can predict supply-demand and guide the department of agriculture and farmers for forming proper aggregate policy of agriculture. In globalization and liberalization environments, it is needed to go scientifically to solve the problem not politically like different political sponsored farmers’ union activities.
Dr.Y.C.Zala,
Agricultural Economist
http://yczala.250free.com/index.htm