“Agriculture sector appears to be adversely affected by the economic reform
process.” Explain the given statement.
Answers
During the reform period, the public investment in agricultural sector was reduced. Hence, irrigation, roads, power, market linkages and agricultural research were suffered. The small and medium farmer's were badly affected by the removal of fertiliser subsidy.
Explanation:
The agricultural sector was adversely affected by the reform process in the
following manner-
(i) Public investment in agriculture sector especially in
infrastructure like irrigation, power etc. has been reduced in
the reform period
(ii) Reduction of fertilizer subsidy has increased the cost of
production affecting thereby the small and marginal farmers
(iii) Increased international competitiveness due to liberalisation
and reduction of import duties.
(iv) Shift from food crops to cash crops due to export-oriented
policy in agriculture led to a rise in prices of food-grains.