The question as to whether a policy of providing price incentives to cultivators should be a part of the general policy of modernising the agricultural sector in the underdeveloped countries has led to a controversy as to the applicability of the concept of supply response in a traditional agriculture. Thus, while some authors have ruled out the possibility of the play of the price-mechanism from agricultural production decisions, others have argued that peasant producers respond normally and significantly to changes in the price level. To a certain degree this controversy has been confused and intensified by the failure to make explicit the three different aspects of the supply response: (i) the response of total agricultural production to changes in the terms of trade with the non-agricultural sector; (2) the response of individual crops to a change in price relative to the prices of alternative crops; and (3) the response of the marketed surplus to changes in the price. In the recent past it has been found in a number of econometric works that the acreage (in some cases output) of individual crops (category (2) above) is fairly responsive to changes in relative price. But two other aspects of the problem have hardly been examined yet. In the present chapter an attempt is made to investigate whether changes in the price level had any effect on the supply of total agricultural output and the produce of individual crops (categories (1) and (2) above). As the relevant data are not available no attempt is made to estimate the price elasticity of the marketed surplus of food crops.