Answer to Question #204852 in Microeconomics for Thembi Phiri

Question

Why was agricultural sector declared as a critical industry and exempt from the hardest lockdown regulations

Answer 1

Following the outbreak and spread of Covid 19 and subsequent introduction of stringent measures of lock-downs, raising of roadblocks, and cessation of movements, by governments of the various country such China, USA, Europe and part of African countries,  in a bid to stop the spread of the virus; Agriculture, the entire food supply as well as other manufacturing and transport industries were severely affected.

Agriculture among many industries was regarded as a critical industry since the entire global community depends on it for food and nutritional supplies; about 23% of the agricultural products are is utilized by the households whereas 77% goes to food processing as intermediate inputs, and hence the stringent measures introduced spelled doom in the entire food supply chain putting many lives and enterprises at stake.

As a result, preferential exemptions were accorded to the agricultural industry; timely monitoring of food crises, the establishment of green channels for inputs, and output supplies and for workers, provision of safety nets, and keeping of trade open are just but a few strategies employed to ensure smooth functioning of the food supply and prevent any possible instance of food crises.