what is meant by 'quantitative restrictions' in the context of agricultural trade?How does it impact domestic concerns of Indian agriculture?500words 20markd
Answers
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. These restrictions may be applied on a selective basis, with varying limits set according to the country of origin or destination.
The imposition of quantitative restrictions on imports and exports (and other similar measures also act as quantitative restrictions on imports), through direct restriction on the amount of the foreign product imported enables domestic products to avoid direct competition.
ofcourse quantitative restrictions have positive impact on Indian domestic agriculture as it reduces the direct competition between foreign product and domestic product.
Concerning the context of agricultural trade, the term “quantitative restrictions” refers to the quotas or the explicit limits which are set on the physical quantities of various products which are being exported or imported at a given time period.
The limits may vary depending on the origin country or the destination country.
This is beneficial for the Indian domestic agricultural products as the products do not face direct competition with foreign goods.