Towards A Pareto Efficient Indian Agricultural Market - with specific focus on rice and wheat markets

The paper examines the policies of the central as well as state governments with respect to the agricultural market, specifically in rice and wheat markets, analyses their shortcomings and argues for a national market in agriculture. In the present scenario of bulging foodgrains stocks, rising food prices and changing consumption patterns, the paper argues that these interventions are misplaced and create market distortions that also raise WTO compliance issues. It explores the steps to be taken that would enable the Indian agricultural market to asymptotically approach a Pareto efficient perfectly competitive market by the removal of various interventions.