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New Agricultural Policy Essay

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II. DYNAMICS:
Economists working on the agricultural policies are interested in the determinants of the supply and consumer demand of the agricultural policies as they provide a platform for the foundation and formulation of the agricultural policies by engaging with the markets. The policy which are formulated generally have the objective of maximizing social welfare and they are formed in such a way that they take into consideration certain facts like, there will be always be some factors over which the policy would have no control (for example- climate), there will be side effects (for example- it may benefit a certain group of the society adversely and may be detrimental to another group) and that there will be constraints over an area (for example- a state’s resources may not be enough for the policy to work properly). The objectives of the agricultural policies have always been diverse where they consider the social and political stability, increase the food security, try increasing the export earnings, prevent malnutrition among children and women, and generating employment as a whole. (Ellis Frank, 1992) …show more content…

The New Agricultural Policy revealed its ‘pro-farmer’ stance. It had a business-oriented approach to agriculture, it incentivized prices, revamped the agricultural institutions and made this sector more attractive to investors. This policy invested upon mainly in the ‘poor-but- resource rich’ states such as West Bengal, Assam, Eastern Uttar Pradesh, Bihar, Eastern Madhya Pradesh and the North-eastern states in order to encourage usage of technology, induce dry-land farming( Refer to Appendix III), and promote agro-based industries in the rural sector for creating additional jobs. (Mankar V.G,

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