Multiple problems that are present in the agri-market system in India are created by the excessive intervention of the state itself. Discuss. – IASPOINT

Multiple problems that are present in the agri-market system in India are created by the excessive intervention of the state itself. Discuss.

The state has always been a dominant player in agriculture marketing in India, as the country is agriculture-dependent & is guided by socialist tendencies. State’s intervention is present in production, procurement, storage & distribution levels in many ways:

This intervention on all levels has given rise to many problems:

Other than this, many populist measures for electoral gains like loan waivers, free electricity, and free water have also distorted the agricultural set up in India.

Way Forward:

Instead of providing monetary external aid, the focus should be on making agriculture self-sufficient with the help of a functional cooperative culture, crop diversification, and the use of ICT tools in developing both indigenous and export markets for agriculture.

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