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Consider the impact of economic reforms on agriculture:
1. Public investment in agriculture sector has increased only slightly, in the reform period.
2. The removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and marginal farmers.
Q. Which of the above statements is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
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Consider the impact of economic reforms on agriculture:1. Public inves...
Public investment in agriculture sector especially in infrastructure, which includes irrigation, power, roads, market linkages and research and extension, has fallen in the reform period.
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Consider the impact of economic reforms on agriculture:1. Public inves...
Explanation:

The correct answer is option 'B' - 2 only. Let's understand the impact of economic reforms on agriculture in detail:

1. Public investment in agriculture sector has increased only slightly, in the reform period:
- The statement is incorrect because public investment in the agriculture sector has actually decreased during the reform period.
- Economic reforms in many countries often prioritize industrial development and infrastructure projects over agriculture, leading to a decrease in public investment in the agriculture sector.
- This decrease in public investment can negatively impact the growth and development of the agriculture sector, as it hampers the availability of funds for agricultural research, development of irrigation facilities, and modernization of farming techniques.

2. The removal of fertilizer subsidy has led to an increase in the cost of production, which has severely affected small and marginal farmers:
- The statement is correct as the removal of fertilizer subsidy has indeed led to an increase in the cost of production.
- Fertilizers play a crucial role in improving agricultural productivity by providing essential nutrients to crops. However, the cost of fertilizers can be high, especially for small and marginal farmers who have limited resources.
- The removal of fertilizer subsidy means that farmers have to bear the full cost of purchasing fertilizers, which increases their overall production costs.
- This increase in production costs can be detrimental to small and marginal farmers as it reduces their profit margins and makes farming economically unviable for them.
- Additionally, the removal of fertilizer subsidy can also impact food security as it may discourage farmers from using adequate amounts of fertilizers, leading to lower crop yields and reduced availability of food.

In conclusion, the impact of economic reforms on agriculture includes a decrease in public investment and the removal of fertilizer subsidies, which has led to an increase in production costs for small and marginal farmers. Therefore, the correct answer is option 'B' - 2 only.
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Consider the impact of economic reforms on agriculture:1. Public investment in agriculture sector has increased only slightly, in the reform period.2. The removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and marginal farmers.Q. Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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