Agricultural Prices: An Economic Issue Entangled in A Political Web*

Agricultural prices and markets are among the most contentious issues, and the recent farmers’ agitation over the past years has intensified this concern. Naturally, it becomes necessary to review the entire process of the emergence of price policy in India as well as the historical context in which it emerged. Traditionally, agricultural markets have been imperfect, and this issue attracted policies during the first two decades of independence. Many changes occurred during those decades, and the price policy evolved over the years, with minimum support price and the procurement of food grains dominating the scenario. The economic and political context of those changes needs to be viewed clearly. The Long-Term Grain Policy Committee took an overall view and commented on the price policy situation in the country; however, the recommendations lacked an implementation platform. Recent contentious issues have emerged from the three Farm Acts, which have provoked agitations. The controversies encompassed numerous problems, including a shift in marketing policy from earlier Agricultural Produce Market Committee-controlled agricultural markets, which moved towards allowing private players in the market and contract farming. Apart from political issues, several combative economic issues surround this debate. This article analyses the emergence and development of agricultural prices in India. It provides a synoptic view of all the significant milestones and then discusses the contentious issue of the farm laws and their implementation. The approach here is placed more in a political economy framework than in attempting any empirical or technical analysis. JEL Classification: Q18, D40, Q11, Q13, H11