The study discuss positive contributions of food policy followed in the country and indicate the limits beyond which government intervention turns counterproductive. It emphasizes the importance of demand side factors in planning government intervention and favourable environment for participation of private trade in grain markets. The author makes innovative and bold suggestions for reforms in government intervention in foodgrain markets that are consistent with present demand, supply, trade and policy FOREWORD xi scenario and which would help in promoting efficiency in production, regional equity, output growth and private sector participation.