Which of the following statement (s) is/are correct?

Statement 1: Indian farmers are now facing increased international competition due to economic reforms of 1991.

Statement 2: Because of exportoriented policy strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on cash crops in lieu of production of food grains.

Both statements are correct.

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.

This sector has been experiencing a number of policy changes such as reduction in import duties on agricultural products, low minimum support price and lifting of quantitative restrictions on the imports of agricultural products. These have adversely affected Indian farmers as they now have to face increased international competition. Moreover, because of exportoriented policy strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on cash crops in lieu of production of food grains. This puts pressure on prices of food grains.