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

Solution

A slowdown in agricultural growth has occurred. The issue of rural distress, which has reached crisis levels in some regions of the nation, is primarily caused by this slowdown. Due to poor farm revenues, low output prices, and a lack of financing at affordable rates, farmers are in exorbitant debt. Widespread migration in distress has resulted from this. The agricultural sector has not benefited from economic reforms because:
(a) The withdrawal of subsidies has increased production costs while driving down the price of commodities on the global market, forcing small farmers to compete. It has increased the cost of farming.
(b) A number of policy reforms, including the elimination of minimum support prices for agricultural imports and quantitative limits, have made Indian farmers more vulnerable to foreign competition.
(c) The export-oriented expansion encouraged more cash crops to be produced rather than more food grains. Food grains are now more expensive as a result of this.
(d) During the reform period, public investment in the agricultural sector has decreased, particularly in infrastructure, which includes roads, power, irrigation, and market connections.

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