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(i) Subsidies: Offering subsidies to maize producers in order to reduce cost of production and hence increase supply.
(ii) Quotas: Can use quotas to control overproduction.
(iii) Price control: Fixing the highest price beyond which a commodity should not be sold at.
(iv) Taxation: Reduction of tax on the price of farm inputs for example, fertilizer may increase maize production.
or
- Increase subsidies the government parts of the pretition cost, making production move affordable.
- Eliminating quotas on production – by not limiting the quality of good to be produced/ producers are free to supply as much as they can to the market
- Favourable price control – the government fixes the prices of produce at high level which encourages emergence of new producers
- Improving acces to credit – the government extends loans to producers through bodies like KIE/IDDG/ICDG to boast investment in production
- Facilitate marketing – the government may form agencies that buy produce to cushion producer.
maurice.mutuku answered the question on July 10, 2017 at 06:28
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