Farming Business in India: Why Have Market Prices Become Like Gambling?
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Farming Business in India: Why Have Market Prices Become Like Gambling?
Article: Farmers' Movement • Article
Author: Arun Ramchandra Pangarkar,
Published in: Shramik Kranti – Garibanacha Aawaz (Voice of the Poor) • Published: 27 November 2025
India is an agrarian country—yet the **market prices** our farmers receive often fluctuate like a **gamble**. Prices rise one day, only to crash the next; as a result, the farmer is caught in a quagmire of uncertainty.
India: Key Reasons for Volatile Market Prices
- MSP Announced, but Actual Procurement is Low: The government announces the **MSP** (Minimum Support Price); however, in reality, large-scale procurement is not done for crops other than wheat and rice.
- Monopoly of Brokers and Buyers: Since rural markets are scattered, farmers have fewer alternative options for direct sales.
- Lack of Storage and Processing Facilities: Due to the absence of cold storage and processing infrastructure, crops must be sold immediately.
- Climatic Uncertainty: Annual changes in production due to rain, drought, as well as excessive rainfall or hailstorms.
Comparison with Other Countries — Who Provides Security and How?
The following table and points will help you easily understand the comparison with India:
| Country | Price Volatility | Farmer Protection | Outcome/Impact |
|---|---|---|---|
| India | Very High | Low | Unstable Income |
| America | Medium | Strong, using **Insurance**, **Subsidies**, and **Futures Market** | Helps stabilize income |
| Canada | Very Low | **Supply Management** (Milk, etc.) and Cooperative Power | Stable Prices |
| Europe (EU) | Low | Strong policies like **CAP** (Common Agricultural Policy) | Farmers secure due to government grants |
| China | Medium | Minimum Procurement Price and **Government Intervention** | More controlled compared to India |
Practical Solutions for India (Can be used immediately)
- FPO (Farmer Producer Organization) / Cooperative (Group Selling): Farmers can work together to get better prices.
- Using Warehouse Receipt Scheme: It becomes possible to store the crop instead of selling immediately and sell later at a higher price.
- Contract Farming: Guaranteed prices are available for certain crops—reducing the risk.
- Digital Markets and Price Updates: Services like **e-NAM**, **Agmarknet** provide price information and connect directly to the market.
Conclusion
Price volatility is comparatively higher in India because protective policies, market structure, and storage management are limited. Although prices change in other developed or planned economies, farmers are provided with greater protection and support, which keeps their income relatively stable.
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Author: Arun Ramchandra Pangarkar,
Source: Shramik Kranti – Garibanacha Aawaz (Voice of the Poor)
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Tags: Agriculture, Farmers, MSP, FPO, commodity-prices
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