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Q.

Warehousing facilities are absolutely essential to store the food items during bumper harvests to help the farmers to get a fair price for their produces. Why not the farmers come forward to form co-operative societies with the help of government that can set up the necessary storage facilities. Your views?

Asked by Good Citizen, 01 Apr '10 03:13 pm
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Answers (2)

 
1.

Now u r speaking like a Redistani party boss :) I like that :D

Warehousing facilities DO exist in India, but farmers who have access to them end up stockpiling their entire produce there, creating an artificial demand and thereby fueling a price hike.

Farmers of the land have cooperative societies but most of the cooperative infrastructure nationwide is awfully drained of resources. I remember reading a travelogue which detailed that in many areas in NOrth East, the agrarian infrastructure resembles something you'd see in a war torn African nation.

The ENTIRE problem w/ food and the free market is that food is a primary good (not affected by rising income levels. Someone eating 20kg of rice @ 10k INR per month won't eat 40kg of rice @ 20k INR per month. Unless you have price ceilings and price floors for the agro commodities themselves, I am afraid finding stable food pricing is quite a Herculian task.
Answered by A Moin, 01 Apr '10 03:25 pm

 
  
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2.

Its killing and promote hoarding of stock which is illegal also
Answered by ashwani agarwal, 01 Apr '10 03:16 pm

 
  
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