Reform Agenda for Agriculture

Agriculture can be expected to derive the full benefits of the macroeconomic reforms introduced so far only when reforms directly affecting agriculture are put in place. Indeed, the slowing down of agricultural growth in the post-reform period, despite the favourable macroeconomic environment, is explained by the neglect of reforms directly affecting agriculture. This essay seeks to spell out a reform agenda for agriculture within the framework of a two-pronged strategy: (a) to release the initiative and enterprise of farmers and the private sector in general by removing restrictions on agricultural trade, processing, etc; and (b) to facilitate adequate supply response to the incentives so created by strengthening infrastructure, agricultural research and extension and delivery of credit, while protecting the environment.