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


The agricultural sector was adversely affected by the reform process in the following manner- 

 (i) Public investment in agriculture sector especially in infrastructure like irrigation, power etc. has been reduced in the reform period 

 (ii) Reduction of fertilizer subsidy has increased the cost of production affecting thereby the small and marginal farmers 

 (iii) Increased international competitiveness due to liberalization and reduction of import duties.  

(iv) Shift from food crops to cash crops due to export-oriented policy in agriculture led to a rise in prices of food-grains.

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