With suitable examples, discuss the impact of international trade conflicts and government economic policies on the agricultural sector in India.

The Indian agriculture sector is profoundly influenced by international trade conflicts and domestic economic policies. These dynamics have far-reaching implications for farmers, necessitating a comprehensive understanding of their effects and the formulation of appropriate safeguards.

  1. International Trade Conflicts: The US-China trade war exemplifies how global tensions can create economic stagnation, adversely affecting Indian farmers. For instance, the influx of cheaper foreign agricultural commodities can undermine local prices, making it difficult for Indian farmers to compete.
  2. Domestic Economic Policies: Policies like inflation targeting can inadvertently escalate food prices, impacting consumers and farmers alike. When input costs rise due to fluctuating crude oil prices, farmers face increased production costs, which can lead to reduced profit margins.
  3. Government Support Programmes: Initiatives like PM-KISAN aim to support farmers but often suffer from inadequate funding and resource allocation. This hampers their effectiveness and can lead to farmer discontent and protests.
  4. Minimum Support Price (MSP) Issues: Challenges surrounding MSP procurement and stalled initiatives, such as food-parks, exacerbate stress within the agricultural sector, contributing to tragic outcomes like farmer suicides.

To safeguard farmers’ interests, the government must adopt strategic measures.

  • Implement stricter regulations on foreign agricultural imports to protect local farmers from market volatility.
  • Streamline funding and resource allocation to agricultural programmes for enhanced efficiency.
  • Stabilise input costs to help farmers withstand international market pressures.
  • Utilise parliamentary majority to enact supportive agricultural policies that align with broader economic goals.

Thus, aligning agricultural policies with the interests of farmers is crucial for ensuring their well-being and sustaining the agricultural sector amidst global challenges.


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