The prices of agricultural produce do not generate expected return at present.

Directions: A passage is given below which is followed by several possible inferences that can be drawn from the facts states in the passage. You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity. 

In an era of globalization, we need to find appropriate tools to confront the challenge facing agriculture. Commodity futures markets can play a major role in addressing some of these challenges. In order to improve agriculture productivity, we need to encourage private investment including that from individual farmers, and reasonable returns for agri produce is a prerequisite for this. The price appreciation in agri commodities has failed to match the increase in price of inputs or the price rise of other commodities, indicating deteriorating terms of trade for agriculture. Our spot markets are fragmented and being, dominated by a large chain of intermediaries, can hardly ensure a fair return for the farmers. Spot transaction, being mostly offline, lack audit trail. Different prices for the same commodity in different parts of the country give rise to arbitrage opportunities for traders. Further, driven by the need for immediate cash, most farmers engage in distress sale after harvest when supply exceeds demand and price is at its lowest.