Project Report

Project Impact of Agricultural Sector on Indian Economy

Indian Business Academy
Submitted to

Prof. Prof. Reema Mohanty

Submitted by Amit Dandapath-0911/009

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Project Report


Apart from the efforts of mine, the success of this project depends largely on the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I would first like to thank our CEO, Mr. Manish Jain, and Dean, Dr. Subhash Sharma for being so encouraging and helpful throughout my report work. I would also like to express my profound gratitude to Prof. Reema Mohanty for her constant and valuable suggestions while doing the project work. Without her encouragement and guidance this project would not have materialized.



M.Comm Faculty

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Table of Contents
No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Contents Introduction Major achievements International agricultural Trade Germplasm exchange Scope of agriculture in developer economy E-Commerce applications Opportunities Problems faced by Indian agriculture Strengths agriculture in Indian economy What can government take action Farming families that form the backbone of Indian agriculture and economy Future of agriculture in Indian economy Conclusion References

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4 5 6 7 8 8 9 10 11 13 14 15 16 17

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Introduction:Agriculture is the production of food and goods through farming. Agriculture was the key development that led to the rise of human civilization; with the husbandry of domesticated animals and plants (i.e. crops) creating food surpluses that enabled the development of more densely populated and stratified societies. About 40% cents of our people live below the poverty line today. They face problem of day-to-day not enough money to buy simple food items.  Total Geographical Area - 328 million hectares  Net Area sown - 142 million hectares  Gross Cropped Area ± 190.8 million hectares  Major Crop Production (1999-2009) Rice 89.5 million tones Wheat 75.6 million tones Cereals 30.5 million tones Pulses 13.4 million tones Oilseeds 20.9 million tones Sugarcane29.9 million tones     Contributes to 24%of GDP Provides food to 110 Billion110 Billion people Sustains 65% of the population One of the 12 Bio diversity centers in the world with over 46,000 species plants and 86,000 species of animals recorded

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Major Achievements or India¶s position in world Agriculture:               Total Area Irrigated Area Population Economically Active population Total Cereals Wheat Rice Coarse grains Total Pulses Oil Seeds Fruits and Vegetables Implements (Tractors) Milk Live Stock (castles, Buffaloes) Vegetables Seventh First Second Second Third Second Second Fourth First Second Second Third First First Second

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International Agricultural Trade:Export The total value of agricultural exports during the period April, 2001 to January, 2002 was Rs. 23666.38 crores which is higher by to 859.88 crores or 3.77 % of last year. The increase in value of agricultural exports during the period under review has been primarily because of higher exports of Sugar by Rs. 1174.92 crores or 367.42%, Wheat by Rs. 901.15 crores or 709.06%, Rice Rs.364.44 crores or 58.63 Fresh Vegetables by Rs.104.28 crores or 29.91%. In contrast there was declines in the export of Marine Products by Rs.453.93 crores or 8.31%, Rice Basmati by Rs.281.72 crores Castor oil by Rs.223.20 crores Pulses by Rs.175.4 crores Cotton Raw including waste by Rs.175.07 crores . The percentage share of agricultural exports in the total value of national exports during the period under review had declined marginally to 13.84 from 13.90 during the corresponding period of last year. Import The total value of agricultural imports during the period of April, 2001 to January, 2002 was Rs.13833.52 crores which is higher by Rs.3460.66 crores or 33.36% as compared to the value of import during the corresponding period of last year. The increase in value of agricultural imports during the period under review has been primarily because of higher imports of Pulses by Rs.2299.58 crores, Cotton Raw by Rs.711.46 crores , Vegetable oils Fixed Rs.451.51 crores Wood and Wood Products by Rs.384.13crores

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Germplasm Exchange
Import A total of 544 samples of various crops were introduced from eight different countries viz., Australia, Canada, Italy, The Phillippines, Peru, Syria, USA and UK. Promising accessions were : grapes improved Sirius, Bianca, Regent, Hibernal from Canada; dry bean variety "Jaguar" - upright mid season and resistant to certain diseases from USA. Export Twenty-two samples of different crops viz., safflower, berseem, soybean, groundnut and Lucerne were exported to two countries viz., Uzbekistan and Germany.

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Scope of agriculture in developer economy 
               Agricultural Research Agro-Meteorology Agricultural Marketing Agricultural Engineering & Food Processing Agricultural Extension and Transfer of Technology Credit and Cooperation Crop production & protection Environment & Forest Fertilizers and Manure Fisheries Irrigation and Drainage System Livestock, Dairy Development & Animal Husbandry Rural Development & Planning Soil and Water Management Watershed Development Wasteland Development

E-Commerce Applications
‡ Agri-Business (Agri-clinics and Agri-Business Centres) ‡ Agricultural Marketing ‡ Agricultural Trade ‡ Cooperatives ‡ Horticulture (horticulture, floriculture, sericulture, aquaculture etc,. ) ‡ Organic farming ‡ Agriculture Statistics
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                  Scope for becoming the regional centre for developing countries Outreaching through distance training Demand for off campus programmers Enhanced international recognition for country specific projects in research management Scope for development of decision support systems Facilitate net-working and policy support You have to test your soil's fertility, and balance your soil with the addition of the right minerals. You have to encourage the growth of the right microorganisms in the soil, for the soil is a living organism itself. You must plant the right type of seeds at the right time, and use the right type of rotation of crops to renew the soil. You must select the right type of fertilizers for your soil. You must use herbicides and pesticides in minimal amounts and stop depending on toxic materials. You must learn to control weeds and insects through soil fertility. You can produce healthier livestock via more natural farming methods. You can market more products, and at higher prices, if you adopt the well proven principles of direct marketing to farm management Organic Farming Biological Farming Biodynamic Farming Sustainable Agriculture Calendar Farming Self-sustaining Farming Regenerative agriculture

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problems faced by Indian agriculture






7. 8.


Adoption of modern agricultural practices and use of technology is inadequate, hampered by ignorance of such practices, high costs and impracticality in the case of small land holdings Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of the land was irrigated, which result in farmers still being dependent on rainfall, specifically the Monsoon season. Overregulation of agriculture has increased costs, price risks and uncertainty. Government intervenes in labor, land, and credit markets. India has inadequate infrastructure and services. World Bank also says that the allocation of water is inefficient, unsustainable and inequitable. The irrigation infrastructure is deteriorating. The overuse of water is currently being covered by over pumping aquifers, but as these are falling by foot of groundwater each year, this is a limited resource. The average size of land holdings is very small (less than 20,000 m²) and is subject to fragmentation, due to land ceiling acts and in some cases, family disputes. Such small holdings are often over-manned, resulting in disguised unemployment and low productivity of labour. Illiteracy, general socio-economic backwardness, slow progress in implementing land reforms and inadequate or inefficient finance and marketing services for farm produce. Lack of education and awareness about opportunities. Agriculture has become un-viable due to over supply because new hybrids are giving excellent yield but due to over supply, the price realization is very low. Agriculture has become un-viable due to over supply because new hybrids are giving excellent yield but due to over supply, the price realization is very low.

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10. Power problem 11. Following old

pattern 12. Transport problem 13. Farmer cultivation problem 14. Climate problem 15. Government policy 16. Farmer economy condition 17. Trading System 18. Land condition 19. Technological Problem 20. Communication problem with farmer 21. Information Problem new technology

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Strengths Agriculture in Indian economy 
Unique institution for learning and capacity building in agricultural research and education management.  Rich repository of learning resources.  Adaptability and acceptability of programmers to national and international clientele.  Multidisciplinary expertise in Agriculture research and education management.  Availability of advanced facilities  Conducive working environment and central location  Strong linkages with national and international agencies  More number of undeveloped land  Maximum number depend on agriculture  People sowing interest on cultivation  Climate for crop production

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What can government take action 
                   Best utilize the land Proper irrigation on field Provide lone for cultivation Supply good quality seed Cost of fertilize decrease and give more facility Provide good trading system Improved the transport system Communication system improved Supply information regarding cultivation Promote for cultivation full year Suggestion for cultivation Increase the farmer income Give facility to farmer Maximum utilization of technology Short time cultivation More irrigation facility International trading on agricultural product Make agriculture as a profitable Business Online farming facility The agriculture policy must accelerate all-round development and economic viability of agriculture in comprehensive terms

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Farming families that form the backbone of Indian agriculture and economy: Policy support, production strategies, public investment in infrastructure, research and extension for crop, livestock and fisheries have significantly helped to increase food production and its availability.  Virtually all of the increase in the production resulted from yield gains rather than expansion of cultivated area.  Increased agricultural productivity and rapid industrial growth in the recent year shave contributed to a significant reduction in poverty level.  Child malnutrition extracts its highest toll in this country. About 25% children suffer from serious malnutrition. More than 50 percent of the preschool children and pregnant women are anemic. The depth of hunger among the undernourished is also high.  In national priority setting, the following recurring and emerging issues for sustainable agricultural development and poverty alleviation must be considered  Investment in agriculture, structural adjustment and impact on the poor

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Future of Agriculture in India Economy
India is land of villages & Agriculture is still the largest occupation in India. You are correct but future of agriculture in India is very bright. people in India are overcrowding in cities to get the job. This over saturation will lead open various Fields in career, job option in Indian agriculture. Biotechnology vibrant field in which India is developing in faster rate because of R&D[Research & Development] established by India to develop the yield of crops in India due to increasing demand of food. All we need to do a proper management in this field by the govt, to create awareness about career options in Agriculture. So that our new gen will be capable to create another green revolution in India.

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According to the 11th Ten Year Plan (2007-2020) documents, lower growth in productivity increase and profitability in agriculture is attributable to: Inadequate investment in rural infrastructure has hampered the growth of agriculture Illiteracy, socio-economic backwardness, slow progress in implementing land reforms and inadequate marketing and storage facilities are affecting Indian agriculture Agriculture is mainly rain-fed. There has been low level of public investment in irrigation-related infrastructure There has been widening economic disparities between irrigated and rain-fed areas increased vulnerability to world commodity price volatility following trade liberalization. This had an adverse effect on agricultural economies of regions growing crops such as cotton and oilseeds Rapid and widespread decline in groundwater table, with particularly adverse impact on small and marginal farmers It is high time to reconsider the potentials of agriculture, which supports the majority of the population, before it is too late. Higher public investment in agriculture along with properly implemented land and tenancy reforms would lead to improved purchasing powers in the rural areas, particularly in the hands of the rural poor. An increase in effective demand can revive growth of the Indian economy, which has recently faced threat from the global economic and financial downturn.

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References web sid sector


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