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We need price de-regulation

Posted by Sandeep Shelke on September 30th, 2011

Farmer’s suicide stories are endless like Hanuman’s tail. It will continue to grow despite all debt-waivers, schemes, awards. If government is willing to solve this problem then they must accept that there is one. And problem is that we have worst policies in place. Governments archaic pricing policies must go away, we need price de-regulation. 

For example, the Agricultural Debt Waiver and Debt Relief Scheme in 2008 by UPA, Free electricity announcement, state controlled agricultural produce market yards, National Rural Employment Guarantee Scheme, etc.

Though I’m against any waivers because, I think anything free paralyzes economy. If we look at result of any of the schemes above, its evident that all of them were just poll gimmicks. Debt waiver helped mostly farmers from western Maharashtra where the debt wasn’t any issue. compared to Vidarbha (e.g.). So the suicide belt could not get the help required. Then the free electricity scheme in Maharashtra, a complete misnomer. What government did that supplied 3-phase electricity only for 8 hours in summer when crops need much more watering. Even today also we have 3-phase electricity only for 12 ours.

All these idiotic decisions weren’t enough that UPA introduced NAREGA. This created an artificial employment scarcity especially when they needed most. The labors demanded double the wage for 7 hour work with 1 hour lunch break that means 6 hours of effective work. But at the same time they forgot to take care of market pricing. So I call NAREGA as anti-development.

I remember for past 5 years onion prices are in the same range of Rs. 5-7 at the yield time but input costs have more than doubled over the same period. Just for example 5 years ago daily wage for a farm women labor was Rs.40-45 today they demand anything above Rs.100.

We need MSP and crop insurance.

Friends, current political parties have no competency and inclination to solve the problems they are rather interested in quick fix. I decided to replace them and I’m on my way. Whats your take?

जय भारत!

Related Posts: Farmer’s right to decide price

EDIT: After few years on this I realize price intervention from govt is problematic. As it is false assumption that govt has ability to derive rational price. Market is the true force to decide price as per demand and supply. If price is higher for basic commodities govt can subsidies the weakest section (which must be revised every year).

5 Responses to “We need price de-regulation”

  1. Sanjeev Sabhlok Says:


    We need to be cautious in suggesting any price intervention. I do not see why the state should have anything to do with the market price of any commodity. No minimum price support exists for shoes or haircuts. In general, there is no free lunch. That law can’t be violated.

    The minimum price means that someone is paying for that price. The taxpayer. And with a huge administrative charge to run the scheme. Basically it is a subsidy that gives jobs to thousands of bureaucrats. I recommend only one intervention in the system: a social minimum. If anyone falls below that he/she will be topped up. But no support of any sort.

    Crop insurance is something farmers should be able to take through private insurance companies. If these don’t exist you can start one. Let the risk of production of any commodity not be taken up by government (taxpayer).


  2. senthil Says:

    NO.. we need de-commercialising agriculture..

  3. संदीप नारायण शेळके Says:


    Sorry for the late reply since was away.

    With “Minimum Support” I does not mean we have government paying it at any cost. I mean to say a base price bellow which the commodity must not be sold. And that price must be decided depending on the expenses which will be varying.

    Today this factor is not taken into account in the open market by traders. They quote prices for the commodities irrespective of the production cost. Sometimes things get so wary that farmer has to pay for own pocket for the transportation.

    E.g. haircut prices are decided by association and not by consumer or trader. shoes price is always above production cost by the manufacturer.
    In case of farmers this authority isn’t there.

    I’m certainly not suggesting a price support from Govt. But rather a declaration of a sales price which will support at least their expenses.

    But I realized one more aspect after a thought that farmers can have an association which will work to declare minimum sales/support price for commodities regularly.


    I find it quite difficult in de-commercialization since its very individualistic matter. And we cant avoid people from taking crops of their choice/need. Rather we can spread awareness and that isn’t a quick thing to do.

    Even if awareness about various crop increases and food processing facilities come in place we will have better prospects.

    Jai Bharat!

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  5. sakharam t khandare. Says:

    70 percent Indian farmer had there land holding below two hectars and most of them farming at there own land. this is fact.

    farmers demand the M S P related to production cost, there is no hearing in the court of law nor government, only the the god/allah/wahe guru/jesus may be accountable for the situation.

    now to resolve this issue we have only option that,

    1)for one year only cultivate those crop which you need in your daily fooding needs with using traditional/organic fertiizer,

    2)for one year postpone all expensive programme,

    3)register for work with narega min. 100 days

    why get suicide? Help you to help God .
    (adopt the three point programme to save the farmer life)

    always start from self

    stkhandare vidarbha region,maharashtra

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