Why are farm produce prices so low in India?

Asked 07-Sep-2022
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India is the world's biggest food producer and consumer, with a population of 1.3 billion people. India is also the world's second most populous country after China. India's agriculture is a key sector of the economy. The Indian economy is forecast to grow at 7.5% in 2017. The India Agricultural sector is characterised by low productivity and low intensity of production. Agriculture is the second largest employer after the industrial sector. The agricultural sector employs around 48% of India's population. The sector contributes around 12% to the country's GDP

Why are farm produce prices so low in India?

The price of farm products has been low in India for years now, with no definitive answer as to why. Farmers in the country are not getting a fair price for their products, which has led to many farmers going bankrupt. There are a number of theories as to why the prices farmers are receiving are so low, but no one knows for sure. One theory suggests that the government is not doing enough to help farmers get a fair price for their produce, while another theory suggests that the food industry in India is monopolizing the market and preventing farmers from getting a fair price for their products. Whatever the reason may be, it is clear that the price of farm products in India is not fair, which is hurting farmers and the economy as a whole.

There are a few reasons why the price of farm products in India is low. 

  • The main reasons for the low productivity of Indian agriculture are the lack of irrigation, poor agricultural infrastructure, poor seed production, low adoption of modern technology, low adoption of greenfield farming, and low level of investment.
  • One reason is that the government in India is not providing a fair price to the farmers. The farmers are getting a very low price even though they are producing good quality products. 
  • In addition, many farmers in India do not have enough money to sell their products at a fair price. 
  • Another reason is that the transport system in India is not good. This makes it very difficult for the farmers to get their produce to the market.