Economic Analysis of Price Parity & Marketing of Crops in Maharashtra

The present investigation examines the price parity, input and output prices and trends in arrivals and prices of wheat, rabi jowar, gram, pigeon pea, groundnut and sunflower in different agro-climatic zones of Western Maharashtra. The input costs were substantially increased by four to five times over output prices because of inflationary pressure on input costs. Therefore, the support price policy for foodgrains should help the farmers in increasing farm income, but it has failed in reducing the variability in gross income. There is no parity between farm harvest prices to input prices and cost of production and income to cost of production in cereals, pulses and oilseeds. The compound growth rates of average input cost, minimum support prices, farm harvest prices, cost of production, gross income at minimum support prices and at farm harvest prices of all crops were positive and highly significant. There were seasonal fluctuations in arrivals and prices with a negative relationship. To avoid lower prices, it is suggested to store the grains in the warehouses. The need of money could be fulfilled by obtaining warehouse receipt loans.