Economic reforms were widely criticised because they neglected the agriculture sector. Do you agree?
Economic reforms were widely criticised because they neglected the agriculture sector. Do you agree?
It is true that the New Economic Policy did not give importance to the agricultural sector as compared to industry, trade, and services.
a) Public investment in agriculture was largely reduced in the reform period.
b) Removal of the fertiliser subsidy increased the cost of production, which adversely affected many small farmers.
c) After the establishment of the WTO, a number of changes in policy were brought about:
i) reduction in import duties on agricultural products
ii) removal of minimum support price, and
iii) lifting of quantitative restrictions on agricultural products
These above policies adversely affected farmers owing to the greater international competition they faced.
d) Due to the export-oriented policy strategies in agriculture, the production shifted from food grains to cash crops for the export market. It led to a rise in the prices of food grains.
It is true that the New Economic Policy did not give importance to the agricultural sector as compared to industry, trade, and services.
a) Public investment in agriculture was largely reduced in the reform period.
b) Removal of the fertiliser subsidy increased the cost of production, which adversely affected many small farmers.
c) After the establishment of the WTO, a number of changes in policy were brought about:
i) reduction in import duties on agricultural products
ii) removal of minimum support price, and
iii) lifting of quantitative restrictions on agricultural products
These above policies adversely affected farmers owing to the greater international competition they faced.
d) Due to the export-oriented policy strategies in agriculture, the production shifted from food grains to cash crops for the export market. It led to a rise in the prices of food grains.
