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?
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.