Agriculture In India

AGRICULTURE IN INDIA.

INDIAN AGRICULTURE : PRODUCTIVITY TRENDS Indian Agriculture and Pattern of Employment in the Country In Million Employment of Main Workers in agriculture 1951

2001

Total Population

361

1027

Rural Population

299 (83%)

742 (72%)

Cultivators

70 (50%)

128 (32%)

Agriculture labourers

27 (20%)

107 (27%)

Other Workers

43 (30%)

167 (41%)

140 (100%)

402 (100%)

Total Working Population

• In 1951 about 70 percent of the total main workers were engaged in agriculture and allied activities •during 2001, the share of agriculture in total employment declined to 59 percent

Importance for Industrial of Agriculture Development • Major source of raw material like cotton textile industries, sugar and vanaspati ghee. • Other small scale and cottage industries like handloom weaving, oil crushing, rice husking depend upon agriculture for their raw materials – together they account for 50 percent of income generated in the manufacturing sector in India.

Importance of Agriculture in the Field of International Trade • Agriculture products direct or indirectly contributes 70 percent in total international trade of India.

Role of Agriculture Sector in Economic Planning • Agriculture is the main support for India’s transport system, since railways and roadways secure bulk of their business from the movement of agriculture goods. • Good crops implying large purchasing power with the farmers lead to greater demand for manufacturing.

Growth rate in agriculture since 1950 Crops

1950-65

1965-2001

All Crops

1.6%

0.1%

Food Grains

1.4%

0.1%

Non-Food Grains

2.5%

0.3%

•Impressive annual rate of growth in area under crops during 1950-65. • During the period 1965-2001, the increase in area under rice was only by 22 percent while the area under wheat rose by 92 percent. As a result, the annual rate of growth of area under rice was a mere 0.6 percent, while it was 2 percent for wheat.

THE PLACE OF AGRICULTURE IN THE NATIONAL ECONOMY Share of Agriculture in the National Income At 1993-94 prices) Rs. crores

YEAR

GDP at factor cost

Agriculture

%

1950-51

1,40,470

83,150

59.19

1970-71

2,96,280

1,42,580

48.12

1990-91

6,92,870

2,42,010

34.92

2000-01

11,93,920

3,16,690

26.45

• The share of agriculture in national income, however, has been decreasing continuously and the share of the manufacturing and service sectors are increasing.

INDIAN AGRICULTURE UNDER ECONOMIC PLANS Objectives

Strategies

a. Increase agriculture•Setting up of community development programmes and production agriculture extension services throughout the country. •Expansion of irrigation facilities, fertilisers, pesticides, agriculture machinery, high-yielding varieties of seeds. b. Increase employment•Expansion of transportation, power, marketing and opportunities institutional credit. c. Reduce the pressure•To setup agro-based industries and handicraft in rural of population areas. •To promote rural transport and communications and to encourage the movement of people from agriculture to industries and service sectors. d. Reduce inequality of•The strategy used was land reforms which included the incomes in the ruralremoval of intermediaries. sector •The protection of tenants through tenancy legislation, ceiling of land holdings. •Distribution of surplus land among landless labourers and small and marginal farmers.

PATTERN OF INVESTMENT IN THE AGRICULTURAL SECTOR Total Plan Outlay on Percent of Outlay Agriculture and total outlay Irrigation First Plan (1951-56)

1,960

600

31

Second Plan (1956-61)

4,600

950

20

Third Plan (1961-66)

8,600

1,750

21

Fourth Plan (1969-74)

15,780

3,670

23

Fifth Plan (1974-79)

39,430

8,740

22

Sixth Plan (1980-85)

1,09,290

26,130

24

Seventh Plan (1985-90)

2,18,730

48,100

22

Eighth Plan (1992-97)

4,85,460

1,02,730

21

Ninth Plan (1997-2002)

8,59,200

1,70,230

20

•Outlay in Agriculture has remained constant.

CAUSES FOR SLOW GROWTH RATE IN AGRICULTURE UNDER THE FIVE YEAR PLANS

• Limited Use of New Agricultural Technology • Decline in Investment in Agriculture • Agriculture, dependent on monsoons • Failure of land reforms • Growing Exploitation of the tenants • Failure to control growth of population

WEAKNESS IN AGRICULTURE PLANNING • Output of foodgrains subject to considerable fluctuations due to uncertain rainfall. • Increase in output particularly foodgrains had been concentrated in a few progressive regions. • Tremendous growth of rural population. • Low levels of income, specially marginal and small farmers.

CAUSES FOR LOW PRODUCTIVITY 1. General Factors a. Overcrowding in Agriculture b. Discouraging Rural Atmosphere c. Inadequate Non-farm Services 2. Institutional Factors a. Size of Holdings b. Pattern of Land Tenure 3. Technological Factors a. Poor Techniques of Production b. Inadequate Irrigation Facilities

NEW AGRICULTURAL STRATEGY

• Boost to the production cereals • Increase in the production of Commercial crops • Significant changes in crop pattern • Boost to agriculture production and employment • Forward and backward linkages strengthened

NATIONAL AGRICULTURE POLICY (2000) OBJECTIVES 1. A growth rate of over 4 percent per annum in the agriculture sector 2. Growth that is based on efficient use of resources and conserves our soil, water and bio-diversity 3. Growth with equity i.e. growth which is wide spread across regions and farmers 4. Growth that is demand-driven and caters to domestic markers and maximises benefits from exports of agricultural products in the face of challenges from economic liberalisation and globalisation 5. Growth that is sustainable technologically, environmentally and economically.

SUSTAINABLE AGRICULTURE • To control indiscriminate sub-division of agricultural lands for non-agricultural uses. • To use unutilized wastelands for agriculture and afforestation. • To increase cropping intensity through multi-cropping and inter-cropping • Long term perspective plan for sustainable rain fed agriculture through watershed approach for development of two-thirds of India’s cropped area, which is dependent on rains. • Rational use of ground and surface water. • Better technology.

FOOD AND NUTRITIONAL SECURITY • To raise the productivity and production of crops to meet the demand. • Development of horticulture, floriculture, roots and tubers plantation crops and generating employment in rural areas. • Development of animal husbandry, poultry, dairying and aquaculture to receive high priority for diversifying agriculture, increasing animal protein availability in food basket and for generating exportable surpluses. • Cultivation of fodder crops and fodder trees to be encouraged. • The involvement of cooperatives and the private sector will be encouraged for the development of animal husbandry, poultry and dairy

GENERATION AND TRANSFER OF TECHNOLOGY 1. Encourage application of biotechnology, remote sensing technologies, pre and post harvest technologies, energy saving technologies and technology for environment protection. 2. Financial sustainability of extension services in a phased manner, a more realistic cost recovery of extension services and inputs, while simultaneously safe-guarding the interests of the poor and vulnerable groups. 3. Empower women and build their capabilities and improve their access to inputs, technology and other farming resources.

INCENTIVES FOR AGRICULTURE • The structure of taxes on commercial crops and excise duty on farm machinery and implements, fertilisers etc. to be reviewed and rationalize.

INVESTMENT IN AGRICULTURE • Private sector investment in agriculture to be encouraged, more particularly in areas like agriculture research, human resource development, post-harvest management and marketing. • Private sector investment to be encouraged for setting up agro-processing units, collaboration between the producer cooperation and the corporate sector will be encouraged.

INSTITUTIONAL STRUCTURE • Consolidation of land holdings all over the country. • Redistribution of ceiling surplus lands and wastelands among the landless farmers and unemployed youth • Tenancy reforms to recognise the rights of the tenants and sharecroppers. • Development of lease markets for increasing the size of holdings by making legal provisions for giving private land on lease for cultivation and agri-business. • Updating and improvement of land records computerisation and issue of land pass books to the farmers • Recognition of women’s rights in land.

RISK MANAGEMENT The National Agriculture Policy envisages National Agriculture Insurance Scheme covering all farmers and all crops through out the country. Efforts are being made to provide a package insurance policy for the farmers, right from sowing of the crops to post-harvest operations, including marketing fluctuations in the prices of agricultural produce.

WEAKNESS OF THE NEW STRATEGY • Indian Agriculture Still a gamble in the monsoons. • Growth of Capitalistic Farming in Indian Agriculture. • Side-tracking the need for Institutional reforms in Indian agriculture. • Widening disparities in income. • New Strategy and Socio-economic relations in rural areas. • Problems of labour displacement

New Challenges to Indian Agriculture • How to push up agricultural production in the shortest possible time. • The tremendous growth of population from 350 million in 1951 to over 1000 million in 2001 and increase in demand for foodgrains and agriculture raw material due to economic growth • India requires a minimum growth rate of 4 percent in foodgrains and 6 percent in non-food crops during the rest of this century to meet the basic requirement of the economy for food and agriculture raw materials.

New Challenges to Indian Agriculture • Not much scope to increase area under agriculture,need to increase the productivity through multicropping. . • Develop small irrigation projects,water-shed. • Community as the main stake holders. • Land Reforms • Technological Reforms • Financial Reforms

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