IMPACT OF FOOD PRICES ON FARMERS’ WELFARE WITH DIFFERENT LANDHOLDING SIZE AND POVERTY PROFILE- A SITUATION ASSESSMENT OF INDIAN STATES
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Abstract
Agriculture pricing policies are one of the most important policy tools used by the policy makers to provide higher incomes to the farmers and increase their overall welfare. Since the food prices have increased tremendously in recent years so the beneficial effects of such price rise on the farm incomes and welfare has drawn the attention of policy makers and researchers. However, whether such prices actually benefit the farmers depend upon their overall sales position, and for very small farmers most of their sale values are off-set by their purchases of food commodities. Present study examines the micro level household data to calculate the net position of every household in different states of India and then tries to study the linkages of this net-position of household with his landholding and poverty level to formulate a picture of how the welfare of farmers in different states would be affected in case of a price rise. The results suggest that small and marginal farmers living in poorer states of Jharkhand, Bihar, Odisha and Uttar Pradesh will be in a state of loss whereas farmers in states where landholdings are large like that in Punjab, Haryana, Gujarat and Maharashtra would be high gainers
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