Find the missing step in this chain from the assessment of reforms in agriculture:
Export-oriented policy strategies in agriculture → ? → Less production of food grains → Pressure on the prices of food grains
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Shift to cash crops for the export market
Export-oriented policies moved farming from the home market to the export market, with a focus on cash crops in place of food grains. Less land under food grains meant less food grain output, which puts pressure on food grain prices.
Lower import duties, less public investment and the lifting of import restrictions all hurt farmers. But none of them is the link between export-oriented policy and less food grain.
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. 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 export-oriented 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.” |