Which of the following statements is/are correct?
Statement I: Due to partial removal of fertiliser subsidy, there has been an increase in the cost of production of agricultural goods, which has severely affected the small and marginal farmers.
Statement II: The growth rate in agriculture in the post-1991 reform period has been registering a marginal increase.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Only Statement I is correct.
Statement I: Due to partial removal of fertiliser subsidy, there has been an increase in the cost of production of agricultural goods, which has severely affected the small and marginal farmers. — True. The partial removal of fertiliser subsidy raised the cost of production and hurt small and marginal farmers badly.
Statement II: The growth rate in agriculture in the post-1991 reform period has been registering a marginal increase. — False. The growth rate in agriculture has been decelerating, that is, slowing down.
NCERT (2026-27): “Reforms in Agriculture: Reforms have not been able to benefit agriculture, where the growth rate has been decelerating. Since 1991, public investment in agriculture sector especially in infrastructure, which includes irrigation, power, roads, market linkages and research and extension (which played a crucial role in the Green Revolution), has fallen. Further, the partial removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and marginal farmers. …” |