Impact Of Prices On Acreage And Income From Gram In Haryana

Agriculture sector plays a vital role in the life of the people of India due to being an agriculture based economy. It contributes significantly to the country’s income and employment status and the sector has been growing rapidly. To get a breakthrough in the production of different crops, the government of India set up a Commission for Agriculture Costs and Price (1965) to make recommendations for the safety of the interest of farmers and to motivate them to use modern technology in the agriculture sector. How far, this incentive given as monetary term has succeeded in motivating farmers and getting positive response from them is the major examination of the present study. To conduct the study, Haryana state (India) has been selected. The data related to Area, Production, Yield and prices have been obtained from various issues of the Statistical Abstract of Haryana from 1979-80 to 2008-09. The data have been compiled for the whole study period. For comprehensive study, the period from 1979-80 to 2008-09 has also been split up into three decades. The important findings emerged from the present study indicates that the growth rates of area and production during all the reference periods have been negatively highly significant. The results obtained in the present study depicted the worse situation of the price policy as far as concerned with the area allocation under gram crop because the area has been decreasing in spite of providing more prices for the crop. It may be concluded on the bases of the above discussion that for bringing about the technological revolution, the price policy is a necessary condition but not a sufficient one.