What is meant by ‘quantitative restrictions’ in the context of agricultural trade? How does it impact domestic concerns of Indian agriculture
Answers
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Quantitative restrictions refer to explicit limits, or quotas, on the physical amounts of particular commodities that can be imported or exported during a specified time period. When a trading partner uses quantitative restrictions, however, it is impossible to export in excess of the quota.
A trade restriction placed on the amount of an item or service that can be imported into a country. These are frequently enacted to protect the price of domestically produced goods or to decrease or eliminate a trade deficit. Also called trade quota.
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Quantitative restrictions in agricultural trade impacts domestic agricultural concern.
Explanation:
- The concept of quantitative restrictions refers to the limit set on the amount of goods on the imported stuffs into our country by the government.
- Though it protects the domestic producers from getting affected from the competition of imported goods by limiting its incoming but tariffs affects pricing thus limiting trade.
- Meanwhile rice QR have not proved beneficial over the years,thus failing on their objectives.
- However this concept is making rice available to all with its lowering of prices thereby increasing household savings in the face of lowered rice expenditure.
- The probability of helping or domestic farmers to diversify their income source through the fund programs generated from the revenue decreases.
Learn more about quantitative restrictions
What is the meaning of Quantitative restrictions
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