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 of agriculture

2) absence of good itrigation infrastructure

3) prevail of non. Institutional lender and less penetration of institional lending.

4) absence of innovation and modern technology

5) agri-marketing and agribusiness or supply chain is not good and efficient.

Two policy recommendations:

1)plolicy of financial inclusion of farmers and Institution borrowing system penetration.

2) policy related to Agri-infrastrucre development(like irrigation,fertiliser,seeds .,pescticide etc) and agri-marketing facilition and supply chain management.