The Government of India, while approving the setting up of AER Centre stipulated that the Centre would undertake the following activities:
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Make a study of changes in rural economy by means of survey of a number of selected villages each year and resurvey of the same group of villages at an interval of say, five years.
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Conduct ad-hoc investigations into problems of interest to the Ministry of Agriculture, Government of India.
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Carry out research on fundamental problems relating to agricultural economics of the country.
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Give technical advice to the Government of India and concerned State Governments on such issues as, with mutual agreement, may be referred to the Centre.
It was also desired that the AER Centers would maintain necessary contacts with each other and also with the Ministry of Agriculture.