Wednesday, November 10, 2010

The great subsidy debate.....

Tuesday, November 9, 2010The great subsidy debate....





Subsidy to Farmers: Replace subsidies with greater market access for farmers including allowing export of agricultural produce. Farmers will get more for their produce in global markets and Global prices will become the floor for setting domestic MSP. Government agencies can assisit farmers by providing integrated marketing and distribution services for a global reach. Deadweight loss of subsidies will be coverted into producer surplus. Free market leads to better price discovery and competetion, international prices will serve as a benchmark for domestic pricing of agricultutral produce by the state government.







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