Redesigning Indias foodgrains policy

In the long run government should emphasize on to maintain a buffer with the aim of using it to hold down prices during food shortage. Another measure that must be considered is the supply of food to poor masses at all times. The main factor affecting and causing fluctuations in food market is weather. Apart from this, various other natural factors also affect agricultural production such as drought, flood, etc. Taking weather as the key factor affecting agricultural production, without government intervention prices will be high in bad weather and low in good weather. So MSP should not be raised during the periods of bad weather. Also to have a successful management system it is very important to have a good way out to supply food during food shortage. Also, there is mismanagement of food reserves. Idle food reserves must be avoided as they result in price increase due to procurement of reserves from the market. Also to lower the prices of foodgrains, they should be provided in small batches to traders or directly to consumers. Another measure that can be taken is to release food as it is procured. But with this we have to be ensure that a few traders do not end up cornering the whole stock.