By mid-September, 2003 it is becoming clear that Gujarat is likely to experience a bumper crop in the year 2003-04. The State Ministry of Agriculture is looking for some concrete suggestions, advice and policy recommendations to better manage the situation likely to be created by the bumper crop this year. Falling prices in the face of bumper crop can considerably wipe out positive effect on agricultural incomes in the hands of farmers in the State. Short-term measures to avoid such a situation need to be integrated into medium term and long term development strategy for the State agricultural sector. The present paper provides some implementable policy recommendations in this context.