Question

With reference to the relevant literature, discuss five (5) economic challenges facing the agricultural sector in Less Developed Countries (LDCs). Your discussion should encompass two (2) policy recommendations that should be implemented by the Governments of LDCs to address these challenges

Answer 1

Challenge:

1) lower productivity

2) traditional technology of production

2) poorer farm get infrastructure like road , transportation

3) prevail of non. Institutional borrowing at higher interest rate or less investment in agriculture

4) absence modern technology at each level of production and supply chain

5) poorer agri-marketing and agribusiness or poorer supply chain management

Two policy recommendations:

1)policy of to boost Institution borrowing system penetration and increase investment in agriculture and thus make agriculture as part of business or value chain .

2) policy related to Agri-infrastrucre development and agri-marketing facilition and supply chain management to provide good price of their produce.