Yes, I agree with the statement. Economic reforms did not significantly benefit the agricultural sector, and the growth rate of agriculture has slowed down.
- During the reform period, public investment in agriculture declined. As a result, areas such as irrigation, electricity, roads, market connections, and agricultural research were adversely affected.
- Moreover, the reduction or removal of fertiliser subsidies increased the cost of production, which had a serious impact on small and marginal farmers.
- Globalisation and India’s membership in the WTO led to policy changes such as lowering import duties on agricultural goods, reducing support measures like minimum support prices, and removing quantitative restrictions. These changes exposed Indian farmers to greater international competition, worsening their situation.
- Agricultural policy also shifted towards export-oriented production. This changed the focus from food grains to cash crops meant for export. Consequently, the supply of food grains declined, creating upward pressure on their prices.
