Agricultural sector appears to be adversely affected by the reform process. Why?
Agricultural sector appears to be adversely affected by the reform process. Why?
Due to the following reasons, the agricultural sector appears to be adversely affected by the reform process:
(i) Public investment in agricultural sector, especially in infrastructure which includes irrigation, power, roads, market linkages and research and extension, has been reduced in the reform period.
(ii) The removal of fertiliser subsidy has led to increase in the cost of production. which has severely affected the small and marginal farmers.
(iii) Various changes in policies like reduction in import duties on agricultural products, removal of Minimum Support Price (MSP) and lifting of quantitative restrictions on agricultural products have increased the threat of international competition to the Indian farmers.
(iv) Export-oriented policy strategies in agriculture have marked a shift from production for the domestic market towards production for the export market focusing on cash crops in lieu of production of foodgrains.
Due to the following reasons, the agricultural sector appears to be adversely affected by the reform process:
(i) Public investment in agricultural sector, especially in infrastructure which includes irrigation, power, roads, market linkages and research and extension, has been reduced in the reform period.
(ii) The removal of fertiliser subsidy has led to increase in the cost of production. which has severely affected the small and marginal farmers.
(iii) Various changes in policies like reduction in import duties on agricultural products, removal of Minimum Support Price (MSP) and lifting of quantitative restrictions on agricultural products have increased the threat of international competition to the Indian farmers.
(iv) Export-oriented policy strategies in agriculture have marked a shift from production for the domestic market towards production for the export market focusing on cash crops in lieu of production of foodgrains.
