International Journal of Agriculture Extension and Social Development

author(s)
Deepthi NK, AS Tingre, NV Shende and AB Thakare

abstract
The present study aimed to analyse the parity between cost and prices of gram in major states of India using secondary source data collected for the period 2003-04 to 2022-23. The Secondary data on Cost of Production, Farm Harvest Prices (FHP) and Minimum Support Prices (MSP) of gram were collected from the secondary sources. The gap between MSP and cost of production of gram in major states of India namely in Madhya Pradesh, the gap ranged from -13 to 1987 ?/qtl, Maharashtra recorded a gap ranged from -14 to 1172 ?/qtl and Rajasthan showed a gap between -14 and 1628 ?/qtl. The state-wise average gap between FHP and MSP of gram ranged from -98.75 to 171.4 ?/qtl. To examine the effectiveness of the price policy for gram in major states of India, during the harvest periods was examined by the deviations of FHP from MSP and classified into positive and negative deviations to examine whether market prices ruled higher or lower than the minimum support prices. Hence the absolute positive deviation (APD) or absolute negative deviation (AND) and mean absolute positive derivation (MAPD) or mean absolute negative deviation (MAND) was calculated. Also adjusted mean positive deviation (AMPD) and adjusted mean negative deviation (AMND) was worked out. Madhya Pradesh exhibits an equal frequency of positive (10) and negative (10) deviations, indicating potential fluctuations in the relationship. Rajasthan showed a higher frequency of positive (11) deviations, suggesting FHP often exceeds MSP. Maharashtra showed in higher frequency of negative (14) deviations, implying FHP is often lower than MSP.