Agriculture in India

Amandeep VermaLecturer in EconomicsGCCBA 42 , chandigarh

Importance of Agriculture

• Source of Livelihood• Contribution to National Income: 14.2 % in

2010-11• Source of Food Supply• Role of agriculture for Industrial development• Source of Government revenue

• Provision of Capital• Provision of labour• Expanded market for other sectors• Development of International trade:

Agriculture export are 10 % of total exports

Feature of Indian Agriculture

• Feudal Character• Dualism in Labour market• Rural indebtedness• Orthodox Farming Techniques• Predominance of Small farmers

• Vast Unemployment• Large Inequalities

Agricultural productivity

Agricultural productivity is measured as the ratio of agricultural outputs to agricultural Inputs

Sources of agricultural productivity

• Mechanization• High yield varieties• Fertilizers• Irrigation• Herbicides• Pesticides• Increased plant density

Importance of Agricultural Productivity

• More Food• Growth of Area/ region• Agricultural Competitiveness• Efficient Distribution of Scarce Resources• Alleviation of Poverty• Lower Food Prices and Stable supply of Food

Agriculture ProductivityCountry Rice (Per Hectare in

1991)India 17.5

USA 41

Japan 61.9

China 54

Country Wheat per Hectares( Quintals in 1991)

India 22.7

Germany 68

France 61

China 30

Causes of Low Productivity

General Factors• Over Crowding• Socio economic• Natural Factor• Lack of Adequate Finance• Lack of Productive Investment• Inadequate Marketing System

INSTITUTIONAL FACTORS

• Small Size of Holding• Defective pattern of Land tenure

TECHNOLOGICAL FACTORS

• Traditional factors of Production• Lack of HVY of seed• Scanty use of Fertilizer• Inadequate Irrigation facility• Lack of agriculture research

SOLUTION• Increase area under irrigation• More use of fertilizer• More HVY Seeds• Plant protection• Scientific Cultivation• Mechanisation

• Improvement in Animal Husbandry• Land Reforms• Bio tech Crops• Education and empowerment of farmers

• The farmers should be provided with a stable price for their agricultural products at a remunerative level.

• There should be an expansion of adequate marketing facilities to sell the agricultural product.

• The land tenure system should be changed in favour of the cultivator.• There should be a provision of cheap credit on reasonable terms especially to

small farmers for better techniques of production.• The modern inputs like fertilisers. Pesticides and improved seeds should be made

available to the farmers at reasonable prices.• There should be provisions of education, research and extension of agro-economic

services to spread the knowledge of improved methods of farming.• The State should make provision for the development of resources which are not

possible in the part of individual farmers e.g. large scale irrigation, land reclamation or resettlement projects.

• There should be an extension of land used and intensification and utilisation of land already in use through improved and scientific implements.