Parking Space for the Poor: Restrictions Imposed on Marketing and Movement of Agricultural Goods in India
Published By: CCS on eSS | Published Date: June, 16 , 2001Agricultural markets in India have been regulated since 1928 with the inception of
the "Royal Commission of Agriculture." Policy intervention in agriculture was
virtually absent till the Bengal Famine of 1943, in which more than a million people
died. The famine provided a major impetus for formulation of a comprehensive
food policy in India. The Food Policy Committee which was set up after the
disaster, suggested an interventionist government policy in the food grain market.
Intervention began in the form of administrative controls, monopoly procurement
schemes and public distribution, but it now encompasses a wide array of restrictive
tools. This was done on the premise that private trade would function efficiently in
normal periods but in periods of drought and crop failure, the profit motive would
lead them to hoard supplies and earn abnormal profits. Ever since, the Indian
government has followed a policy of de-control and re-control of agricultural
markets.Thus this paper talks about restrictions imposed on
marketing and movement of agricultural goods in India.[Working Paper No. 0009]
Author(s): Mayank Wadhwa | Posted on: Jun 16, 2010 | Views(1106) | Download (689)