Effects of agricultural price fluctuations in an economy

Effects of agricultural price fluctuations in an economy

  • unstable/fluctuating terms of trade
  • Unstable export earning
  • Balance of payment instabilities
  • Planning is made difficult
  • Fluctuation of government revenue
  • Unstable farmers income
  • Fluctuations of employment level
  • Worsens income inequality
  • Discourages investment in agriculture
  • Leads to rural-urban migration
  • Cause exchange rate instabilities
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