Question

explain the impact of liberalisation on agriculture in india? 100 to 150 worlds

Answer 1

The economic liberalization in India refers to ongoing economic reforms in India that started on 24 July 1991. After Independence in 1947, India adhered to socialist policies. Attempts were made to liberalize economy in 1966 and 1985.Till today Agriculture remains a sensitive issue in India with almost 70% of its population still directly dependent on it. Indian agriculture, unlike big capital based European agriculture, revolves around numerous small farmers, who earn their livelihoods from cultivating small plots of land, and with limited access to resources like water, seed and fertilizer.  Until June 1991, India followed a very restrictive economic policy characterized by exclusion of the private sector from many important industries. India faced liquidity crisis in 1991. The balance of payment situation had deteriorated so sharply and the foreign exchange reserves had fallen so low that, the possibility of default in payment was imminent. The fiscal situation has deteriorated sharply. The budget deficit as well as overall fiscal had sharply increased, contributing on the one hand to large increase in money supply, and on the other side to sharp increase in interest payments.  The economic liberalization ushered in June 1991 changed the scenario very substantially. The government had undertaken wide ranging measures to promote exports even prior to 1991, but even then the coverage of imports by export earnings was quite low. This significant change in the trade balance position seems to have been realized on account of various export promotion measures, which the government has undertaken recently.

The biggest input for farmers is seeds. Before liberalization, farmers across the country had access to seeds from state government institutions and the seed market was well regulated, with liberalization India’s seed market opens to global agribusiness. This hit farmers and unregulated market, seed prices shot up and fake seeds made appearance in  a big way. This also happens in fertilizers and pesticide market and it effects agriculture in India.The effects of trade liberalization on selected commodities namely rice, maize, rapeseed-mustard and chickpea at the national level and farm level. Liberalization and its resulted government policies had direct and indirect effects upon agriculture. The most significant related to the efforts at reducing subsidies which affected both agricultural producers and consumers, and the reduction of public expenditure which would have benefited cultivation. Thus, both food and fertilizer subsidies were sought to be reduced over this period. However, both of these strategies, which involved raising the prices for consumers of both food and 10 fertilizers, had undesirable and even counter-productive effects, leading to the paradoxical results of reducing consumption and simultaneously increasing subsidies.

Answer 2

IMPACT OF LIBERALIZATION ON AGRICULTURE IN INDIA

The economic liberalization in India refers to ongoing economic reforms in India that started on 24 July 1991. After Independence in 1947, India adhered to socialist policies. Attempts were made to liberalize economy in 1966 and 1985.Till today Agriculture remains a sensitive issue in India with almost 70% of its population still directly dependent on it. Indian agriculture, unlike big capital based European agriculture, revolves around numerous small farmers, who earn their livelihoods from cultivating small plots of land, and with limited access to resources like water, seed and fertilizer.  Until June 1991, India followed a very restrictive economic policy characterized by exclusion of the private sector from many important industries. India faced liquidity crisis in 1991. The balance of payment situation had deteriorated so sharply and the foreign exchange reserves had fallen so low that, the possibility of default in payment was imminent. The fiscal situation has deteriorated sharply. The budget deficit as well as overall fiscal had sharply increased, contributing on the one hand to large increase in money supply, and on the other side to sharp increase in interest payments.  The economic liberalization ushered in June 1991 changed the scenario very substantially. The government had undertaken wide ranging measures to promote exports even prior to 1991, but even then the coverage of imports by export earnings was quite low. This significant change in the trade balance position seems to have been realized on account of various export promotion measures, which the government has undertaken recently.

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