Need to understand the need of reform

In a country as poor as India, food inflation can never be more than a percent for any substantial period of time.

On the other hand we wish and work towards higher prices for our farmers produce.

Both can happen together only if government subsidises the higher prices of farm products. The market economy and perfect competition that we wish to practice and promote or are forced to promote does not allow this government intervention.

Thus the need for reform. Market economy has to do if agriculture is to grow in India.

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