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No amount of marketing reforms will lead to higher price realisation for farmers if the underlying macroeconomic conditions are unfavourable to agriculture and farmers. Do you agree? Analyse.

Topic:  Major crops-cropping patterns in various parts of the country, – different types of irrigation and irrigation systems storage, transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers.

6. No amount of marketing reforms will lead to higher price realisation for farmers if the underlying macroeconomic conditions are unfavourable to agriculture and farmers. Do you agree? Analyse.(250 words)

Reference:  The Hindu 

Why this question:

Announcement of reforms in agricultural marketing, under the Atmanirbhar Bharat Abhiyan economic stimulus package. The three proposed reforms regarding agricultural marketing are the reforms in the Agricultural Produce Marketing Committee (APMC) Act, the Essential Commodities Act, and on contract farming.

Key demand of the question:

Explain the importance of recognising the macroeconomic conditions for the farmers to have higher price realization in the country.

Directive:

Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.

Structure of the answer:

Introduction:

Briefly explain the current situation owing to the COVID times and its impact on agriculture.

Body:

To start with, explain that no amount of marketing reforms will lead to higher price realization for farmers if the underlying macroeconomic conditions are unfavorable to agriculture and farmers. Suggest that the government should increase fiscal spending to revive demand in the economy which would help protect the farmers from the decline in commodity prices. This has become even more necessary after the sharp decline in incomes, job losses and decline in demand following the lockdown and expected contraction in economic activity for the year ahead. Bring out the fallacies in the move and suggest what needs to be done.

Conclusion:

Conclude by suggesting solutions to the problem.