Question

Which is true in relation to agriculture sector during reform period?
A. Public investment in agriculture sector reduced
B. Removal of fertiliser subsidy led to increase in the cost of production
C. There was a shift from production of cash crops towards production of food grains
D. Removal of minimum support price

• A. A and D
• B. A, B and D
• C. A, B and C
• D. A, B, C, D

Answer 1

Answer: (B)

A, B and D

Public investment in agriculture sector especially in infrastructure, which includes irrigation, power, roads,market linkages and research and extension has been reduced in the reform period.

Further, the removal of fertiliser subsidy has led to increase in the cost of production.

This sector has been experiencing a number of policy changes such as removal of minimum support price.

Moreover, because of export oriented policy strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on cash crops in lieu of production of food grains.