The paper (a) attempts a brief review of the price policy pertaining to the agricultural sector (b) examines the impact of the policy on the income of the farmers (c) studies the broad features of the small vs. lArge farmers, (d) examines the impact of the price policy on the income of the small farmer, and (e) offers suggestions to enhance the effectiveness of the policy with respect to the small farmers' income. It finds that while the policy measures have favoured the former in relation to the non-farming community, their impact on the small farmer in relation to the large farmer is unfavourable.