Providing incentives to farmers to trade in agricultural products increases agricultural production.

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The above statement is true.
The government has introduced several reforms for increasing agricultural production. KCC (Kisan Credit Card) is a scheme that provides loans to farmers at a minimal rate of interest. It provides support for the purchase of agricultural necessities like seeds and fertilisers. Similarly, providing incentives to farmers to trade agricultural products and their supply to domestic markets by facilitating land access and transport helps improve agricultural production. An increase in the area under cultivation, changes in output, and technical changes like using high-quality seeds could be encouraged by providing incentives. A change from staple foods to labour-intensive and high-income products like vegetables and fruits needs to be encouraged.

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