What measures should be taken to solve this problem of agricultural price fluctuations
- Buffer stocks. The government should buy up part of the supply when output is in excess, store this surplus and later sells it to the consumer in times of reduced supply.
- Stabilization fund. The government through marketing boards can maintain or increase prices of agricultural products, depending on world market prices. If profits are made, they are saved and used to stabilize prices and incomes of the farmers.
- A variety of agricultural activities should be introduced e.g. crop farming, poultry, animal husbandry etc. to reduce over dependence on one or a few sources of agricultural income in a bid to stabilize farmers’ income.
- Encourage formation of cooperatives to bargain fair prices
- Introduce irrigation schemes to ensure continuous supply of agricultural products.
- Stability in prices of agriculture can also be attained by improving transport system to enable easy marketing
- There is a need to improve, develop and expand storage facilities to accommodate excess output in agriculture.
- Price control. Government should establish the minimum and maximum prices for agricultural output.
- Market expansion. Government should expand agricultural output market through economic integrations
CATEGORIES Economics
TAGS Dr. Bbosa Science
