The close correspondence between real wages and net barter terms of trade for agriculture again shows the salutary effect of high prices on the rural income of the landless labour in the agricultural sector.
However, this trend conceals in it periods of considerable decline, considerable increase and large fluctuations in the net barter terms of trade.
The aggregate farm output was positively related with the net barter terms of trade, irrigation ratio and the time trend.
Using 3-year moving averages, the author has worked out (a) net barter terms of trade (b) income terms of trade and (c) single factoral terms of trade, for the period from 1951 to 1984.
Therefore, net barter terms of trade for the agricultural sector vis-a-vis investment goods have deteriorated since 1959-60.
1) The net barter terms of trade of the agriculture sector are computed by dividing the GDP deflator for the agricultural sector by the GDP deflator for the manufacturing sector.