What are effects of agricultural price fluctuation in your country?
- Leads to unstable export earnings
- Unstable terms of trade since the cost of imports remain constant
- Leads to fluctuating government revenue
- Make planning agriculture difficult leaving it to mere speculation
- Encourages rural-urban migration search of job with stable income
- Reduced employment in agricultural sector case of fall in prices
- Reduced production because price fluctuation discourage investment in agriculture
- Income inequality rises because some become rich others poor due to agricultural price fluctuations.
- Make it hard to pay back agricultural loans
- Make it hard for banks to avail agro based loans
CATEGORIES Economics
TAGS Dr. Bbosa Science
