Question

Now a days, all the farmers prefer cash crop to the food crops. What problems does this lead to?

Answer 1

This lead to the shortage of food. It also made the soil infertile as the soil which at first suited to food crops is used to grow cash crops. Today, the entire world is facing food shortage due to this, especially the people in slums.

Answer 2

Prices for major cash crops are set in commodity markets with global scope, with some local variation (termed as "basis") based on freightcosts and local supply and demand balance. A consequence of this is that a nation, region, or individual producer relying on such a crop may suffer low prices should a bumper crop elsewhere lead to excess supply on the global markets. This system has been criticized by traditional farmers. Coffee is an example of a product that has been susceptible to significant commodity futures price variations.