Impact of Neo-Liberalisation on Agricultural Marketing Sector in India
Published by: Admin
Authors: Vidhi Jain, Jasdev Singh and M K Sekhon
Abstract
The paper analysed the impact of neo-liberalisation on Indian agricultural marketing sector using compound annual growth rate. The findings indicated that during neo-liberalisation period (after 1990-91), total as well as agricultural exports grew at higher rate in comparison to pre neo-liberalisation period (before 1990-91). While growth rate of total imports remained almost same, agricultural imports during neo-liberalisation period increased nearly at three and half times higher CAGR than that experienced during pre neo-liberalisation period. GCF by private sector in agricultural and allied sector increased remarkably in neo-liberalisation period, the growth rate of GCF by public sector in agricultural and allied sector declined marginally in comparison to the pre neo-liberalisation period. Despite increase in trade, the annual growth rate of farm business income for paddy and wheat was found to be considerably lower as compared to pre neo-liberalisation period. Additionally, during neo-liberalisation period, the rate of expansion of regulated markets declined significantly, moreover it was not uniform across major states. In order to develop agricultural sector, the study recommended raising public investment by increasing budget allocation for rural infrastructure based on state specific requirement, enhance export incentives including freight subsidies for key commodities, concessional export credits and tax benefits for agricultural exports, and establish effective marketing network through value based system supported by public investment in rural infrastructure including cold storage facilities, warehouses, grading and sorting units and primary processing centers.