The Economic Price of Paddy

Abstract

The agricultural policy of the Government in the past, had been ono of apathy to the agriculturists. Our country was suffering from a deficit supply of staple food. Imports of rice from Burma and Siam had been flowing into the country to meet our shortage. Even after a long period of dependency on foreign countries, it is regrettable that there has not been enough increase in output, even to the extent of making our country self-sufficient in the matter of her food requirements. The reason is not far to seek. The prices of agricultural produce were not determined by the cost of production and other allied factors, but fluctuated depending on the foreign imports. The Indian agriculturists had to contend against the low cost of production of rice in the fertile Irrawady delta and against the inelastic production of an export surplus in Burma. When representations were made to the Government to levy a protective duty on rice and to restrict imports, they were not given due consideration. It is no wonder that the area under food crops decreased, as the agriculturists took to the cultivation of commercial crops, which brought them increased returns. Mr. C. R. Srinivasan, former Paddy Specialist, has said "People began to raise money crops in their fields resulting in a reduction of 13% in rice acreage."