Economics • Indian EconomyHard
In assessing regional economic development under the Sikkim Perspective Plan, how do investments in organic certification clusters and GI-tagged agricultural produce like large cardamom alter the terms of trade for hill farmers?
A. They enhance pricing power and value realization by positioning products in high-end domestic and international niche markets.✓ Correct Answer
B. They force farmers to sell unbranded commodities at lower wholesale rates.
C. They eliminate the need for agricultural marketing boards and cold chain storage.
D. They restrict agricultural trade exclusively within district borders.
💡 Solution & Explanation
Geographical Indication tagging and certified organic branding elevate the quality perception of Sikkim agricultural output, allowing farmers to command premium prices and counter the structural disadvantage of high transport costs. Unbranded commodity sales would depress producer margins. Value addition strategies are indispensable for profitable hill agriculture.
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