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wheat. In this way imported cheaper wheat
subsidizes the more expensive procured wheat.
As production advances the need for imported
wheat declines. The subsidy effect of imported
wheat similarly declines and if the price level
is to be maintained in consumer outlets, the
extra funds must be supplied out of the treasury.
For this reason the Agricultural Prices
Commis'sion in their report recommended a
gradual reduction in procurement prices. It was
argued that in Punjab, for example, farmers
with new varieties get 75 percent more yield
and only 15-20 percent less money per quintal
as compared with older varieties. The Chief
Ministers' Conference disagreed and the previous
year level of Rs. 76.00jquintal was retained.
State and Central agencies procure
wheat in all states except Jammu and Kashmir,
Maharashtra and Nagaland.
The effect of a stable market price can be
seen in Figure 3, which shows prices in Hapur.
This is one of the larger markets of Uttar
Pradesh. Prices are remarkably stable in
May, the month of heavy postharvest arrivals.
However, wide annual fluctuations are the rule.
The protection for the farmer is working, that
The increased production using the traditional methods, exemplified by this threshing scene in the shadow
of Humayan's tomb, New Delhi has created certain second generation problems for the farmer. A train
passing in the background carries surplus wheat to markets in other states (Photo: "Statesman", New Delhi).
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