Question

what is state intervention necessary to regulate the activities of private traders in the rural agricultural sector.​

Answer 1

Answer:

This necessitates intervention of the public sector. It is the public sector, with the motive of social welfare can work towards the development of rural areas, where a bulk of Indian population lives.

Answer 2

State intervention is necessary to regulate the activities of private traders in the rural agricultural sector for several reasons:

• Market failure: In many cases, private traders may not be able to efficiently allocate resources, leading to market failure. This can result in farmers receiving low prices for their produce, while consumers are charged high prices. State intervention can help to correct this market failure by regulating the activities of private traders and ensuring fair prices for both farmers and consumers.
• Protecting the interests of small farmers: Small farmers often face challenges in accessing markets and bargaining power due to their limited resources and lack of information. State intervention can help to level the playing field by regulating the activities of private traders and protecting the interests of small farmers.
• Ensuring food security: Agricultural products are a crucial part of a country's food security. State intervention can help to ensure that there is an adequate supply of food by regulating the activities of private traders and preventing hoarding and other malpractices.
• Environmental protection: Private traders may engage in practices that are harmful to the environment, such as the overuse of pesticides. State intervention can help to regulate these activities and ensure that environmental standards are maintained.

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