Question

Agricultural sector appears to be adversely affected by the reform process. Why?

विकल्प

• Reduction of Public Investment 

• Removal of Subsidies 

• Liberalisation and Reduction in Import Duties on Agricultural Products 

• All of the above

Answer 1

All of the above

Explanation:

The agricultural sector did not gain greatly from the 1991 economic reforms. The causes for the negative consequences of economic reforms on India's agriculture industry are as follows:

1. Reduction of Public Investment:
   The level of public investment in the agriculture sector has decreased dramatically. The Indian government has made significant cuts in providing adequate irrigation infrastructure, energy, information systems, market linkages, and highways. Furthermore, agricultural research and development were not as well funded as they had been during the green revolution.
2. Removal of Subsidies:
   The removal of fertiliser subsidies increased the cost of farm production. This increased the cost of fanning, putting poor and marginal farmers at a disadvantage. 
3. Liberalisation .and Reduction in Import Duties oil Agricultural Products:
   Due to Indian commitment to WTO commitments, Import duties were decreased by the government. agricultural products that pushed the poor into poverty enabling marginal farmers to compete with their larger counterparts in the international arena markets. International competition is fierce. market, as well as standard marketing strategies fanning badly affected the poor farmers.