Government Prioritizes Agricultural Infrastructure Over Support Prices to Stabilize Farmers’ Incomes

Shillong, India Jul 30, 2026 ALN: The Government is focusing on expanding agricultural infrastructure, including cold storage facilities and agro-processing units, instead of introducing blanket support prices for farm produce, Agriculture and Farmers’ Welfare Minister Timothy D. Shira said on Thursday.

Speaking on the challenges faced by farmers, Shira said frequent fluctuations in the prices of agricultural commodities have become a recurring problem, leaving cultivators vulnerable to unstable market conditions. These price fluctuations can be attributed to various factors, including supply chain disruptions, seasonal variations in production, and changes in consumer demand. Such volatility can lead to significant financial stress for farmers, who often rely on consistent income from their produce.

“Temporarily, the price of agricultural products may come down and then all of a sudden it goes up again. So an up-and-down situation is very common. However, in order to address this, we have to think of other policies so that in the future farmers will not face this kind of situation,” he said. The minister's comments highlight the need for a more resilient agricultural framework that can withstand these fluctuations.

The minister ruled out the possibility of providing a minimum support price for all agricultural produce, stating that such a measure would place a significant financial burden on the state government. The concept of minimum support prices (MSP) has been a contentious issue in agricultural policy discussions across various states. While MSP aims to ensure that farmers receive a fair price for their produce, implementing it universally can strain government resources, especially in states with limited budgets.

“It may not be possible for the government, because if the government gives support price for everything, it will be a huge expense on the part of the government. But in order to get rid of such a situation in the future, the government will think about other policies,” Shira said. This statement indicates that the government is exploring alternative measures that could provide a safety net for farmers without incurring unsustainable costs.

Instead, he said the government plans to strengthen post-harvest infrastructure by establishing more cold storage facilities, enabling farmers to store produce when market prices are low and sell it when prices improve. Cold storage facilities are crucial for reducing post-harvest losses, which can be as high as 30% for certain perishable commodities. By allowing farmers to store their produce, the government aims to empower them to make better selling decisions based on market conditions.

“The construction of cold storage for farmers will be one of the alternatives. When the price of vegetables is very low, they can keep them in cold storage, and when the prices go up, they can take them out and sell them,” he added. This strategic approach not only helps farmers retain the value of their produce but also stabilizes market prices by reducing sudden influxes of supply when prices are low.

Shira also emphasised the government’s efforts to reduce the role of middlemen by promoting farmer-owned processing units. Citing turmeric as an example, he said the establishment of spice processing units in Bhoirymbong and Jaintia Hills has helped improve price realization for growers. The presence of middlemen often leads to farmers receiving a fraction of the retail price for their produce, creating a disparity that the government is aiming to address.

“To eliminate these middlemen, we need cold storages and some other processing units. For example, take the price of turmeric. Now we have established spice processing units in Bhoirymbong and Jaintia Hills as well, and therefore the price of turmeric has also gone up,” he said. The establishment of these processing units not only benefits farmers financially but also enhances the overall agricultural value chain in the region.

According to the minister, cooperative societies managing these processing units are purchasing produce directly from farmers at better prices, reducing dependence on intermediaries. This direct purchasing model is gaining traction as it creates a more transparent and equitable marketplace for farmers. By cutting out the middlemen, farmers can negotiate better prices and retain more of the revenue generated from their produce.

“With the establishment of processing units, there is no need for middlemen to come and dictate the price. The cooperative societies that are running these processing units fix the price, which is a better price for the farmers. Farmers are directly coming and disposing of their raw material at the processing units,” Shira stated. This shift towards cooperative models not only empowers farmers but also fosters a sense of community and collective growth within the agricultural sector.

He further said the Agriculture Department will assess the demand for such infrastructure across different districts and establish additional cold storage facilities and processing units to minimize post-harvest losses, strengthen value addition, and improve the incomes of farmers. This proactive approach demonstrates the government's commitment to addressing the underlying issues faced by farmers in the region.

The focus on agricultural infrastructure over direct financial support reflects a broader trend in agricultural policy that prioritizes long-term sustainability and resilience. By investing in infrastructure, the government aims to create an environment where farmers can thrive independently, reducing their reliance on government intervention in the form of subsidies or price supports.

In conclusion, the government's strategy to enhance agricultural infrastructure represents a significant shift in policy that seeks to stabilize farmers' incomes while addressing the challenges posed by fluctuating market conditions. By prioritizing cold storage facilities and processing units, the government aims to empower farmers, reduce their vulnerability to market volatility, and ultimately enhance the agricultural landscape in the region. This approach not only benefits farmers but also contributes to the overall economic development of the agricultural sector, fostering a more resilient and sustainable future for farming communities.