• Decrease in demand for locally produced essential goods: When import duty cuts are implemented, it often leads to increased imports of essential goods from other countries. This creates strong competition for local farmers as imported goods are often cheaper, resulting in a decrease in demand for their produce.
• Reduced profitability: Farmers rely on the income generated from their produce. With reduced demand, they may have to lower their prices to remain competitive in the market. This can lead to lower profit margins and financial instability for farmers.
• Lack of investment in farming practices: With reduced profitability, farmers may find it difficult to invest in modern farming techniques, equipment, and technology. This lack of investment can hinder productivity and competitiveness in the long run.
• Job losses in the agriculture sector: If farmers face significant economic challenges due to import duty cuts, they may be forced to abandon farming altogether. This can result in job losses within the agriculture sector, increasing unemployment and affecting rural economies.
• Dependency on imports: In the long term, reduced demand for locally produced goods due to import duty cuts may make farmers more dependent on imported foods. This can have adverse effects on food security and self-sufficiency.