Question

Why subsistence agriculture has been transforming into commercial farming 0?

Answer 1

his paper discusses some beneficial effects of subsistence agriculture with emphasis on transition countries. Micro‐economic models of subsistence agriculture are reviewed and a two‐stage decision model, combining risk aversion and transaction costs explanations for subsistence is developed. The role of subsistence agriculture is addressed in a static comparison to a purely commercial agriculture. We argue that subsistence can play a stabilising role and have beneficial impacts on the agricultural sector when the resources it employs are unwanted by the commercial sector. The exact conditions under which the latter is true are analysed in a static general equilibrium framework. Employing the concept of the subsistence level of consumption, the paper demonstrates that these static effects can be valid in a dynamic perspective, provided additional conditions are met. Policy recommendations with regard to agricultural commercialisation are presented. These explicitly rely upon assumptions about the orientation of subsistence farmers. The lack of current research into this important behavioural feature of farmers in transition countries requires urgent action. There is urgent need for more research into the motivation, objectives and behaviour of subsistence farmers in rural economies of countries in transition.

Answer 2

India is turnig from substancial to commercial farming because india being a potential country to grow a variety of crops we can grow the cash crops and sell it in the international market and can buy the food crops at the much reasonable rate abd we can even earn a good profit out of it. This will help india to grow its economic importance in the international market. This will also help india grow economically.