Role of GOVERNMENT in FOOD GRAINS supply

Presented by:

DEBAPRIYA BHATTACHARYA
MONALISA CHAIL
DEBABRATA CHOUBEY
SAREO YOTHINGLA

Government measure in excess supply of
food grains

Provision for shortage for future use
Export the surplus food grains to increase the revenue
Farmers with less production incurs losses.
Price remains same.
Government distributes grains equally.
Provision to the farmers who are not getting the benefit of
the excess production of food grains



Government measures in shortage supply
of food grains


Food grains should be sold at reasonable
prices
Farmers make huge profit by increasing the
price.
Imports better quality of food grains.
Less tax to the farmers during less
production
Use the stored food grains in shortage
Control the black marketing


Other things remaining constant, the %(age) change
in quantity demanded due to 1% change in price.


price elasticity of demand
% change in quantity demanded
change in price

%
P
0
P
1
Q
0
Q
1
A
B
0 Q
P
Inelastic Demand
When quantity demanded
responds less than the price
changes then it is called
inelastic demand eg-
Necessary commodities
Relationship between price and
agriculture product

Necessary commodity


Price in-elastic(<1)


Steeper in nature

Demand for food is price inelastic
price elasticity is less than one,
consumers suffer
shortage of food, the price of the
crops rises

Govt. decision regarding agricultural
product on price-elasticity

Price should be reasonable
Less tax
Good quality of food grains should be
imported
Distribution should be equal
All the farmers get equal opportunity
Consider the farming and the non-farming
communities

Thus we find that the farming
community is well aware of the fact
that if the price falls, total revenue
falls, and when the price increases,
total revenue increases.

THANK YOU