THE NEED OF STATE INTERVENTION IN REDUCING PRICE DISPARITY BETWEEN AGRICULTURAL AND INDUSTRIAL PRODUCTS PURCHASED BY AGRICULTURAL PRODUCERS

Abstract

The intensification of price disparity between agricultural and industrial products remains one of the unsolved problems of the Republic of Moldova`s agriculture. The differences of price in the farmers’ detriment are also observed in other countries’ economy. In terms of trade liberalization, farmers remain unprotected. The pressure from intermediaries in trade, but also those in the field of food industry, has led to the significant reduction of the share of manufacturer price in the retail price of the final agro food product. Researching this problem, the author believes that the most optimal solution to attenuate the impact of price disparity on the level of agricultural sector`s development is to develop the agricultural infrastructure in complex with state support.