Abstract:
The disappointing performance of the agricultural sector in many
developing countries of the world is receiving increasing attention of the
monetary and exchange rate policy makers. This intervention in
agricultural markets is widespread and is practiced in rich and poor
countries alike. The policies on money supply, nominal exchange rates,
interest rates income, international capital flows, fiscal and trade directed
at
macroeconomics
sector of the economy are of utmost importance to
agriculture. Monetary policy uses the monetary authority to control the
supply of money in the economy
.
Every agricultural business entity is set up with the primary objective of
making profits and several considerations underlying their profit motive
come to bear in determining the pricing of their goods between associated
parties. A business, whether small or big, simple or complex, private or
public is created to provide competitive prices
