In spite of our financial difficulties, we continued to recognize the role of agriculture in the overall development of the economy and to assist as best as we could the activities of the institutions established to promote development in this sector. These include the Agricultural Development Projects (ADPs) and the River Basin and Rural Development Authorities (RBRDAs), Agricultural Credit Schemes, in cooperation with the state governments and the World Bank. The ADPs were extended into all the (21) states while in the case of the RBRDA the direction of efforts was to reduce their number from 18 to 11 and to restrict their activities to land development and provision of irrigation facilities on farm lands as well as construction of dams and surface underground water facilities. This reorganization was completed in 1988.

It was also decided to abolish the Commodity Marketing Boards by end 1986, because of the pressure the system had on the farmers over time without commensurate incentives – essentially, they operated a disincentive pricing system.