Indian agriculture is beginning to appear globally competitive. Two important policy changes have made this possible. The first is the deliberate reduction in the high degree of protection earlier accorded to the manufacturing sector - which has improved the relative profitability of the agriculture sector. The second is, letting the farming community receive market prices so as to bring about more equitable terms of trade for this sector.
There is also encouraging indication of reduced level of subsidies for agriculture by advanced industrial countries which is likely to make the global prices of primary products more favourable for developing countries. Global prices of grains have now attained a level which has enabled India to export large volumes of non-basmati rice.
The global environment together with pragmatic domestic pricing policies for agriculture exports, augurs well for overall agriculture development.
 |
 |
 |
 |
 |
 |
 |