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Name:

KUMAR ABHINEET

Enrollment No:

08BS0004012

Mobile No:

9557168083

E-mail ID:

abhineetibs@gmail.com

MANAGEMENT RESEARCH PROJECTInterim Report (IR)

Project Details:Title of the Project:

“Decline in the share of agriculture in Indian GDP: Aboon or bane for the economy. And role of Agro-Marketing in the revival of agriculture.”

Area of the project:

Agro-Marketing

Objective of the Project:

To find out factors affecting growth of agriculture sector.

ii)

To find out the effects of decline in agriculture sector on the Indianeconomy.

iii)

To find out solutions for the revival of Indian agriculture sector afteranalyzing different Interventions adopted in India and differentcountries.

iv)

To find out how Agro-Marketing can help in the revival of Indianagriculture sector and how to use it for overall change in theagriculture sector?

Description of the Project in Brief:

Since, 60% of Indian populationstill depends on agriculture sector and it provides base for many of theindustries so it becomes matter of great importance to have a substantialgrowth in this sector. As,agriculture in India is not in the healthy situationso finding out the factors responsible for this is very important. Not onlythis, but finding out the solutions for the revival for the agriculture is alsosignificant and in this regard to have a broader view on the concept of Agro-Marketing and to find out the best possible use of Agro-Marketing forthe revival of agriculture sector is essential.

Methodology:

Secondary data will be collected from the books, internet, agri-business journals and magazines.

Overview of Indian Agriculture along with its Marketingand Financial aspects:

Agriculture is the backbone of Indian Economy. About 65% of Indianpopulation depends directly on agriculture and it accounts for around 22%of GDP. Agriculture derives its importance from the fact that it has vitalsupply and demand links with the manufacturing sector. During the pastfive years agriculture sector has witnessed spectacular advances in theproduction and productivity of food grains, oilseeds, commercial crops,fruits, vegetables, food grains, poultry and dairy. India has emerged asthe second largest producer of fruits and vegetables in the world inaddition to being the largest overseas exporter of cashews and spices.Further, India is the highest producer of milk in the world.

BROAD CHARACTERISTICS OF AGRICULTURE:

Agriculture in India is in the hands of millions of peasant households, abulk of which comprise tiny land holdings with preponderance of ownercultivation. There is hardly any direct government intervention in theproduction and investment decisions of the farmers but the governmentdoes influence the legal, material and economic environment in whichfarmers operate (Vaidyanathan 1996). Though tremendous progress hasbeen made to exploit irrigation potential in the country still two third of area under cultivation is unirrigated and there is thus heavy dependenceof production on vagaries of nature i.e. rainfall. Irrigated areas haveexperienced sharp increase in productivity level and large part of outputat such farms is for market. On the other hand, productivity in unirrigatedareas has remained either stagnant or experienced very small growth andmost of the farmers in such areas produce for subsistence purpose.At overall level, agricultural growth remained slow (below 3 percent) intheCountry. Apart from that, agricultural growth remained confined to a fewwell endowed pockets which has created regional disparities.

STRUCTURE OF INDIAN AGRICULRURE:

India’s agricultural area is vast with total arable and permanent croplandof 170 million hectares in 2003- 2005. It has the second largest arablearea in the world after the United States. OECD in it’s 2007 agriculturalpolicy monitoring report notes that Indian agriculture is dominated by alarge number of small scale holdings that are predominantly owneroccupied.

The average size of holding in the late nineties was about 1.4 hectaresand continues to decline, as farms are usually divided on inheritance. Outof India’s 116 million farmers, around 60% have less than 1 hectare andtogether they farm 17% of the land. The share of medium to large farms(above 4 hectares) is very small at just over 7% of all holdings, but thesefarms account for around 40% of the land. The implication is that many of the very small farms are subsistence holdings, with low investment andlittle productivity growth.

PHASES IN AGRICULTURAL POLICY:

The period from 1950/51 to mid 1960s which is also called pre green?Revolution period witnessed tremendous agrarian reforms, institutionalchanges and development of major irrigation projects. The intermediarylandlordism was abolished; tenant operations were given security of