"Frequent changes in the policy parameters/goal posts of trade in agricultural products in the form of changes in import duties and minimum export prices, etc, create instability of policy for any investment in the gro-processing industry," the Survey said.
These changes in policy parameters have limited impact on the price the consumer pays, because of the time taken to arrive at the decision and the same translating into additional/ reduced supplies, it said.
It strongly suggested that the entire activity of changes in the policy parameters vitiates the concept of a market and needs to be discontinued.
According to the survey, high prices of commodities in a particular year do not translate into benefits to the farmer in the same year, but create expectations, possibly not rational, of the same in the next year, enhancing cropped area in the next year/cropping season, leading to oversupply and reduction in prices and so incomes.
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Further, import duty on wheat was first raised from 'zero' to 10 per cent in August 2015 and from 10 per cent to 25 per cent in October 2015.
The following policy changes were made in the last few years to benefit farmers and to incentivize the development of the agro-processing sector, and enhance farm productivity.
Export of Kabuli Chana and 10,000 tonnes of organic pulses per annum have been allowed. Since 2011, export of rice and wheat has been permitted.
Since February 2013, processed and/or value-added agricultural products had been exempted from export restrictions/bans even if their base produce is subject to an export ban. That apart, export of cotton is free without any restrictions.
The average tariff protection for agriculture (36.4 per cent) is substantially higher than that for non-agricultural products (9.5 per cent).