You are on page 1of 15
Agriculture and Its Development in India 41. ROLE OF AGRICULTURE IN INDIAN ECONOMY [Agriculture is considered as the backbone of the Indian economy. More than 70 per cent of our total population earn their livelihood from agriculture. The following are some of the important points Ivhich explain the role of agriculture in the economy of our country. (1) Contribution to national income. From the very beginning, agriculture is contributing @ Imajor portion to our national income. In 1950-51, agriculture and allied activities contributed about 9 per cent of the total national income. Although the share of agriculture has been declining {gradually with the growth of other sectors but the share still remained very high as compared to that of the developed countries of the world. For example, the share of agriculture has declined to 54 per cent in 1960-61, 48 per cent in 1970-71, 40 per cent in 1980-81 and then to 17.4 per cent in 2017- 18, whereas in U.K. and U.S.A. agriculture contributes only 3 per cent to the national income of these countries, 2) Source of livelihood. In India over two-thirds of our working population are engaged arccly on agriculture and also similarly depend for their livelihood. According to an estimate, about 66 per cent of our working population are engaged in agriculture at present in comparison to that if 2 to 3 per cent in U.K, and U.S.A., 6 per cent in France and 7 per cent in Australia. Thus the employment pattern of our country is very much common to other under-developed countries of the world seal) Sours of foad supply. Agriculture isthe only major souree of food supply as itis providing “ane supply of food to such a huge size of population of our country. It has been estimated that jt 60 percent of household consumption is met by agricultural products. In recent years, India Seas mote or less self-sufficient in respect of food supply although India had to face a serious Toll in food production during the last three decades leading to import of foodgrains from foreign co ~“1en countries to the extent of 5 per cent of total requirements. Pcs ‘er Bank of India, Annual Report, 1995. 140 INDIAN ECONOMY AND — ' iculture for industrial development. Agriculture in India has been the ay ee materials to various important ae ee Cota re textes, sugar, vassal, eile oil plantation indies (ve, eof, aber) ang cota indstis ae ao request oleting the aw materials diel fom agricul 30 pe cent of income genet inthe manfituring sesor comes fom all thse ogra industries in India. Moreover, agriculture can provide a market for industrial products as ingrgs y lead to expansion of market for industrial produets: "a the level of agricultural income n ) Commercial importance. Indian Agriculture is playing a very important role both iq + internal and extemal trade of the country. Agricultural products like tea, coffee, sugar, tobacy, spices, cashewnuts etc. are the main items of our exports and constitute about 50 per cent Of our tot exports. Besides manufactured jute, cotton textiles and sugar also contribute another 20 per geny > the total exports of the country. Thus nearly 70 per cent of India’s exports are originated agricultural sector. Further, agriculture is helping the country in earning precious foreign exchange to meet the required import bill of the country. (6) Source of Government revenue. Agriculture is one of the major sources of revenue tp the central and state Governments of the country. The Government is getting a substantial income fom rising land revenue. Some other sectors like railway, roadways are also deriving a good vat of their income from the movement of agricultural goods. (7) Role of agriculture in economic planning. The prospect of planning in India also much on agricultural sector. A good crop always provides impetus towards a planned econonie development of the country by creating a better business climate for the transport system, ‘manufacturing industries, intemal trade etc. A good crop also brings a good amount of finance to the Government for meeting its planned expenditure. Similarly, a bad crop lead to a total depression in business of the country, which ultimately lead to a failure of economic planning. Thus the agricultural sector is playing a very important role in a country like India and te Prosperity of the Indian economy still largely depends on agricultural sector. Thus from the foregoing analysis it is observed that agricultural development is the bast Precondition of sectoral diversification and development of the economy. An increasing marketable surplus of agricultural output is very much essential in India for (4) increasing supply of food and raw materials at non-inflationary prices; (ii) widening the domestic market for industrial products through higher purchasing capacities in the rural sector; (ii) facilitating inter-sectoral transfers & capital needed for industrial development alongwith infra-structural development; (iv) inereasiht foreign exchange earnings through increasing volume of agricultural exports. | ag 4.2, FEATURES OF INDIAN AGRICULTURE S The agriculture in India was totally backward at the time of independence. Due to the applic of age-old and traditional techniques applied in agriculture, the productivity was very poot. In| 51, there was only 7 tractors, 62 oil engines and 16 irrigation pumpsets per lakh hectares ee cropped areas of the country. A very negligible amount of fertilizer (0.66 lakh tonnes in 19 was also applied on agriculture. Due to its low productivity, agriculture could manage only ae livings to Indian farmers and the agriculture was not at all commercialised. Some of of affairs are still continuing in Indian agriculture. There are certain factors which are re ie eae Ga aid Kon lagen, Agriculture and Economic Development (New Delhi, 1984), P- & AND ITS DEVELOPMENT IN INDIA 141 or condition of Indian agriculture. All these factors will broadly outline the features of Peeuture inthe following manner. ian agri din eadal character of Production. The character of agricultural production in India| was lly feudal at the time of independence. During those days the land tenure system were mostly 5 vamindary, mahalwary and ryotwari type. The major portion i.e., about 57 per cent’ of the total ta vas under zamindaty system which paved the way for exploitation of peasants by the zamindars. wean ce rotvari system this sort of explolition was alo prevalent ‘After the int intermediaries sini roduction of land reform measures by the state Governments for abolishing .ce independence, the character of that feudal system did not change much. The inion of zamindary system paved the way for the creation of absentee landlords. This absentee landlords derived considerable economic power from their land ownership, more specifically through = {pCalvation of land through hired labourers; (i) leasing out the and to tenants; (iif) usuary and (a tmding in food grains and other commodities. 2 Like the zamindars, this absentee landlords tesome the ruling class in India, These landlords are still exploiting the tenants and agricultural orkers, About 50 per cent of the total cultivated land is in the category of under-written oF oral tenancy and a good number of tenants are still in the category of tenants at will and sub-tenants, Moreover, there are two categories of agricultural labourers : (7) attached labourers and (ti) casual labourers With the growing eviction of tenants, the number of agricultural labourers is also increasing leading to an increase in the degree of poverty and misery among the rural poor. +2. Dualism in Labour Market. Dualism in the labour market becomes prevalent in India as due tn excessive pressure of population on land, the level of wages in the agricultural sector became - This dualism started to exist in Indian considerably lower in comparison to that of industrial sector. labour market due to workers” ignorance of better opportunities outside agriculture and also duc to Jow level of wages in the agricultural their inability to work in a modern industrial system. This ‘hich in turn reduces the labour productivity to a sector is responsible for low per capita income wl low ebb, Moreover, cheap agricultural labour paves the way for the adoption of labour-intensive cultivation and discourages mechanisation of agriculture.” 3. Usurious capital and growing Indebtedness. In Indian agriculture, the use of usurious capital is quite huge in volume and this leads to growing indebtedness among the poor farmers. Dung the preindependence period, money lenders and mahajans ae supplying the estire portion ‘attcultural eredit at an exorbitant rate of interest leading to exploitation of farmers. After oo although the government introduced various steps such as—development of ‘co-operative ral ete, Participation of banks in raising rural credit etc. but all these could not benefit the ‘nd marginal farmers and thus they continue to depend on village money lenders to fulfil their ey eee ‘These money lenders are still charging exorbitant rates of interest, manipulate fy of outs nd ultimately seize the land of these small and marginal farmers illegally. Thus this coun, SUtOUS capital in agricultural ered is responsible for growing rural indebtedness in the 4 * Orthodox Farming Techniques. Indian agriculture is still characterised by the use of orthodox ng, ‘chniques Major proportion of the agricultural operations are still depending on biological , Ge energy, ie., human and animal labour, rain water and organic manure (dung). After the yt Thi > i i my ca Post-war Agricultural problems and policies in India, p. 129, Subrata Gut ndian Agricultural Economies (New Delhi, 1992), p. 434. Ghatak and Ken Ingersent, op. cit., p. 9. aa INDIAN ECONOMY AND sdoption of new agricultural strategy in 1966, modem techniques of production alongyig % seeds were introduced in some states like Panjab, Haryana and Western Uttar Pradesh, They in a significant increase in agricultural productivity in those states. This has also reg, regional technological dualism as major portion of the agricultural land continues to methods while only certain regions started to follow modem techniques, Inter-perso c nal techn dualism also started to exist in Indian agriculture as the new technology being costly coming tulted in an follow adapted by only large and wealthy farmers and the small and marginal farmers. in sit of i awareness, continue to follow old techniques due to financial constraints. 5. Fluctuations in Agricultural Output. Another notable feature of Indian a total agricultural output of the country is subjected to much fluctuations. Dependence Of Indi agriculture on monsoons is the most important factor responsible for the large-scale fluctua Sgricultural output. Although net irrigated area of the country has increased from 20.8 mij hectares in 1950-51 to 102.8 million hectares in 2006-07! but proportion of area irrigated tothe iy het sown area has increased from 17.5 per cent to 61 per cent only. Thus the remaining 39 per cy of the net sown area still continues to depend on rainfall. Thus Indian agricultural operations cay Still be considered as the ‘gamble of monsoons’ as nature is still playing a dominant role in determin the volume of agricultural production of the country. Moreover, due to the application of bis chemical technology in the post-1965 period the Sensitivity of output to variations in rainfall hay increased. C.H, Hanumantha Rao, Sushanta K, Ray and K. Subbarao after considering this sensiiyty came to the conclusion that “the fluctuations in the output of all crops, except wheat, have increased Significantly in the post-green revolution period (1966-85) when compared to the pre-green revolution Period (1950-65)."2 isriculture jg ich as soil content, magnitude of rainfall, water availability etc, same areas a itions whereas some other areas are facing occurrence ‘of flocde, Some more ity. Moreover, there exists a considerable Presence of such large div. and to adopt a common sin, an agricultural policy all th be taken into account 4.24. Brief Review of ti In a less developed country like India, agriculture has been considered as the primary occupatiot- In @ county like India, agricultural proctices followed by most of the peasants are not managed a Commercial lines, Rather, itis still res vel of subsistence ersities in Indian agriculture it ig Guite difficult to generalise a problem gle policy on agriculture for all different Tegions. Thus while formulating ese diversities in local geographical, economic and social conditions must he Problems of Indian Agriculture conomic Survey, India 2009-10, p, 187 2. GH. Henumantha Rao, Sushanta K. Ray and K. Subbarag Unstable Agriculture Delhi 1988), p. 29. ericulture and Droughts (New AGRICULTURE AND INS DEVELOBIENT INGNDIA 8 ite of dominati 4 In spite of domination among all the sectors, agricultural sector in India has been subjected to umber of problems. The follows " b aa indian ageicaltre, ne T* Pm OF the important problems responsible fortis poor oh ee ie euacet The distribution of agricultural land in India has not been fairly dis i. 1s a considerable degree of concentration of land holding among the rich landlords, farmers and money lenders throughout the country, But the vast majority of small farmers own @ very small and uneconomic size of holdings, resulting to higher cost per units. Moreover, a huge number of landless cultivators has been cultivating on the land owned by the absentee landlords, leading to lack of incentives on the part of these cultivators. 2 Land tenure system. The land tenure system practiced in India is suffering from lot of defects. Insecurity of tenancy was a big problem for the tenants, particularly during the pre- independence period. Although the land tenure system has been improving during the post- independence period after the introduction of various land reforms measures but the problem of insecurity of tenancy and eviction still prevails to some extent due to the presence of absentee landlords and benami transfer of land in various states of the country. 3, Sub-division and Fragmentation of holdings. In India, the average size of holding is expected to decline from 1.5 hectares in 1990-91 to 1.3 hectares in 2000-01. Thus the size of agricultural holding is quite uneconomic, small and fragmented. There is continuous sub-division and fragmentation of agricultural land due to increasing pressure of population and breakdown of the joint family system and also due to forced selling of land for meeting debt repayment obligations. Thus the size of operational holdings has been declining year by year leading to increase in the number of marginal and small holdings and fall in the number of medium and large holdings. All these have resulted in continuous sub-division and fragmentation of land holdings in the country. This increasing trend of sub-divisions and fragmentation has resulted in the efficient use of land almost impossible leading to the problem of increasing volume of capital equipment on the farm along with low productivity. 4. Cropping Pattern, The cropping pattern which shows the proportion of the area under different crops at a definite point of time, is an important indicator of development and diversification of the sector. Food crops and non-food or cash crops are the two types of crops produced by the agricultural sector of the country. As the prices of the cash crops are becoming more and more attractive therefore, more and more land have been diverted from the production of food crops into cach or commercial crops. This has been creating the problem of food crisis in the country. Thus after 50 years planning the country has failed to evolve a balanced cropping pattern leading to faulty agricultural planning and its poor implementation. S. Instability and fluctuations. Indian agriculture is continuously subjected to instability arising out of fluctuations in weather and gamble of monsoon. As a result, the production of foodgrains and other crops fluctuates widely leading to continuous fluctuation of prices of agricultural erops, This has created the element of instability in the agricultural operation of the country. 6. Conditions of agricultural labourers Agricultural labourers are the most exploited unorganised class in the rural population of the country. From the very beginning, landlords and Zamindars exploited these labourers for their benefit and converted some of them as slaves ot bonded labourers. and forced to continue the system generation after generation. All these led to their wretched condition and total deprivation. After 68 years of independence, the situation inprored eae But as they remain unorganised, economic exploitation of these workers still continues. The level oe uunts by the moneylenders and use of loan for uurposes. Although they borrow every year but they are not in a position as because cither loans are larger or their agricultural production is not sufficient enough to repay their past debt. Thus the debt of farmers gradually increases leading to the problem of rural indebtedness in our country, Thus it is quite correct to observe that “Indian farmer is born in debt, lives in debt and dies in debt.” to repay their loans regularly 4.3, TRENDS OF AGRICULTURAL PRODUCTION AND PRODUCTIVITY ‘Since the introduction of economic planning in India, agricultural development has been receiving a special emphasis. It was only after 1965, i.e., from the mid-period of the Third Plan, special emphasis jwas laid on the development of the agricultural sector. Since then, a huge amount of fund was allocated for the development and modernisation of this agricultural sector every year. All these initiatives have led to : (a) a steady increase in areas under cultivation; (b) a steady rise in agricultural productivity; and (c) a rising trend in agricultural production. Growth in Area In India, gross area under all crops has increased from 122 million hectares in 1949-50 to 151 iillion hectares in 1964-65 and then it increased to 172.4 million hectares in 2016-2017. Further, 88 area under all food grains has increased from 99 million hectares in 1949-50 to 118 million tares in 1964-65 and then to 128.0 million hectares in 2016-2017. Similarly, the gross area under ll non-foodgrains has also increased from 23 million hectares in 1949-50 to 33 million hectares in 1964-65 and then to 44.4 million hectares in 2016-2017. In India, out of the total cultivable area of 186 million hectares, the net sown area is estimated 143 million hectares. Moreover, the area under cultivation of all crops has increased by 0.25 per cent during the period 1980-81 to 1995-96 as compared to 0.51 per cent during 1967-68 to 1980-81. Again the area under ‘odgrain cultivation has declined by 0.32 per cent per annum between 1980-81 to 1995-96 as smpared to an increase in the area to the tune of 0.38 per cent between 1967-68 and 1980-81. During the pre-green revolution period, i, during 1951-65 additional area including marginal fallow lands, waste lands and forest lands were brought under cultivation. The annual rate of wth in area under crops during the period 1950-65 was quite substantial. All erops : 1.6 per cent, 'ULTURE AND cl ITS DEVELOPMENT IN INDIA 147 ‘Among the non-foodgrains, cotton and su; Ro per de estben olga warcane achieved a modest growth rate of 2.0 per cent 1 ring 1950-65 and again to the extent of 2.4 per cent and 1.2 per cent Booey an 1967-2017. Moreover, Potato has recorded a seater increase hebaad th rate from 1.6 per cent during 1950-65 to 3.0 Per cent during 1967-2017. Again, taking all ps together, the annual average growth rate of all cops rose from 1.3 t during 1950-65 1.9 per cent during 1967-2017, i aoe ane Thus the above data reveal that the thnology has become very much effect case of other crops. Green revolution and the application of new bio-chemical ive only in case of wheat and potato but proved ineffective Moreover, if we compare the average yield per hectare of various crops in India with foreign uuntries then we find that India lags far behind the other developed countries of the world. In 1990- » the annual average yield of rice per hectare was only 17.5 quintals in India as against 41 quintals U.S.A., 61.9 quintals in Japan and 54 quintals in China, Again, the annual average yield of wheat hectare was only 22.7 quintals in India as against 68 quintals in Germany, 61 quintals in France \d 30 quintals in China.' nds in Agricultural Production Agricultural production in India can be broadly classified into food crops and commercial crops. India the major food crops include rice, wheat, pulses, coarse cereals etc. Similarly, the commercial yps or non-food crops include raw cotton, tea, coffee, raw jute, sugarcane, oil seeds etc. In India, total agricultural production has been increasing with the combined effect of growth total cultivated areas and increases in the average yield per hectare of the various crops. Table 4.2 ccals the trend in total agricultural production in India since independence. Table 4.2 reveals that total production of foodgrains had increased from 55 million tonnes in 1949-50 to 89 million tonnes in 1964-65 and then increased to 176 million tonnes in 1990-91. But 1991-92, total production of foodgrains came down to 167 million tonnes mainly due to fall in e production of coarse cereals and in 1993-94, the production was around 184 million tonnes. ? In TABLE 4.2. Trends and Growth rate of production of Agricultural crops since 1949-50 Ttems (1949-50 1964-65 (2016-17, Annual Growth rate (%) 1, All foodgrains (m tonnes) Rice (m tonnes) ‘Wheat (m tonnes) Coarse cereals (m tonnes) Pulses (m tonnes) . All non-foodgrains Oil seeds (m tonnes) Sugarcane (m tonnes) Cotton (m bales of 170 kg. each) Potato (m tonnes) 3._ All Crops Source : Same as Table 7.1 and India 2017, GOI. H FAO Production Your Boa i 1989-90, Table 210, p. 207, Tata Services Ltd, FAO Production Year Book, 1992 and Statistical outline of India, 1 | 2. Offciat Report Ministry of Agriculture (March, 1994) & Economic Survey, 1996-97, . $-16, Inia, 2004, p. 60, 148 INDIAN ECONOMY A 2002-2003, total production of foodgrains has further decree a % ae oa AS be fnal estimates, total production of foodgrans has agnin increased fo 2515 mil somes in ani 16.? Total production of foodgrains further increased to 275.7 i cae coe 7 Rag a the presgreen revolution period (1950-65) the foadgrains producto i cancel at Seal saci ete 964.2 pet cent an inthe pos-green revolution perl Sz ot so annual growth rate was to the extent of 2.8 per cent. The major cereal | aaa eae athigh growth rate i, 3.5 and 4.0 per cent respectively during the first perie (125065) ng ae to the extent of 2.2 and 5.0 per cent respectively during the ene) erie (1967201) aig growth rate in coarse cereals and pulses remained quite marginal. Total produ we ie an he have increased from 24 million tonnes and 6 million tonnes in 4 Se ation pation fomes aad million tonnes in 1964-65 and then to 110.2 million tonnes an millon tonnes Yepetvly 2016-2017. In respect of non-foodgrains the trends in production in respect of Potato and sige ‘were quite impressive and that of cotton and oilseeds were not up to s that the new agricultural strategy could not bring a break-through ae Su of os excepting wheat and potato which oe eae Per cent ang 4.9 per cent annual growth rate re vely during the post-green revolution Perio . The growth in output in respect of all other crops remained low and that of coarse cereals and pulses were only marginal where the annual growth rates were only 0.6 and 1.5 per cent respectively. From the above analysis we can draw the following important observations : @ In the pre-green revolution period, the growth of output has mainly contributed by the growth or expansion in area but in the post-green revolution period, improvement in agricultural productivity arising from the adoption of modern technique has contributed fo growth in output. (4 Inspite of adopting modern technology, the growth rate in output, excepting wheat could not maintain a steady level. (i) During the post-green revolution period, the growth rate in output was comparatively love than the first period and it is only due to attainment of high annual growth rate in wheat to the extent of 4.8 per cent, the annual growth rate in foodgrains was maintained at the level of 2.8 per cent in the second period. (%) The growth rate in output of oil seeds, pulses and coarse foodgrains declined substantially in the second period as the cultivation of these crops has been shifted to inferior lands (») Although agricultural production attained a Substantial increase since independence bi! these production trends have been Subjected to continuous fluctuations mainly due to variation of monsoons and other natural factors, 44. LOW AGRICULTURAL PRODUCTIVITY—BACKWARDNESS OF INDIAN AGRICULTURE—CAUSES AND REMEDIES The condition of Indian agriculture still large backbone of the Indian economy. Agricultural of land and labour as well, is among the lowe: quite below the world average in all crops. It ty remains backward although it is considered ae Productivity which is composed of both Lie * st in the world. Average yield per hectare in 4 nics is much lower as compared with even the yiel 1, Economic Survey, 2011-12, p. A-17 and D. 2, Economie Survey, 2017-18, p. 2 and Di 3. Ministry of Agriculture, GOL ept. of Economics and Statistics, GOI. pt, of Economics and Statistics, GOL. General Factors 1. Overcrowding in agriculture. In India agricultural sector is very much overcrowded. Too y people of India depend on agriculture. Since 1901, about 70 per cent of Indian population has depending on agriculture. In 1981, total number of agricultural population in India is 48 crore. ‘o this unrelenting pressure of population and lack of altemative employment opportunities ide agriculture, the size of holding is becoming smaller and smaller with the gradual sub-division nd fragmentation of land. This has resulted in the fall in per capita land area, disguised unemployment nd fall in the marginal productivity of labour to even zero or negative level. Due to this over- owdedness, the area of cultivated land per cultivator has declined substantially from 0.43 hectare p 1901 to 0.20 hectare in 1991. 2. Socio-economic factors. Various socio-economic factors like farmer's conservative outlook, ance, illiteracy, superstitions etc. stand in the way of adoption of modern technology in Indian griculture. Unless this discouraging rural atmosphere is changed, itis not at all possible to modernise ad improve the condition of agriculture in this country. 3. Natural factors. Nature still dominates agriculture in this country. It is said to be a gamble if monsoons. The rains are totally uncertain in India. Sometimes rains are insufficient or sometimes j 2 much of rain resulting in heavy floods both of which cause widespread damage and destruction. natural calamities such as hailstorm, frost or attack by pest and insects are also of common currence in India. All these natural factors always go against the Indian farmers in stepping up agricultural productivity, 4. Lack of adequate finance. Indian agriculture still remains backward due to its inadequate nancial provision. Until recently, farmers have to depend much on the village money lenders, who Pharges exorbitant rate of interest and resorts to unfair practices like manipulation of accounts etc. Or which the cultivator had to lose his land and become a landless agricultural labourer. Other ources of finance, viz., co-operative, banks, financial institutions and Government although exist but P= contributions are almost insignificant in quantity, 5. Lack of productive investment. There is near absence of productive investment in Indian Ericulture as the investment in land is found less attractive than the alternative investment in sllery, trade and money lending. ©. Inadequate marketing system. The marketing system of agricultural products in India is wc) defective and inadequate. In the absence of proper marketing and storage facilities, farmers ‘deprived of due prices of their agricultural products and have to go for even distress sale after “IS at a very low price. Thus the middlemen take away a major chunk of the profit as the are not even guaranteed fair and remunerative prices of their products. 10 total net sown area now comes to be about 59 per wred and controlled water supply, the agricultural producti ce of asst Lack of agricultural research. Agricultural research in India is still very It is not even made requirements. Whatever research is being conducted, its resul ee Paners fully for its application. Thus many chronic problems of agricultural operation faced Farmer still remain largely unattended. us we have seen that there is gross a xe have resulted in low agricultural productivity and al rs of the country. . Remedial Measures to Raise Agricultural Productivity in India 12s. Consolidation of holding is a first step tow: hhould be done immediately by enacting proper 1 farms should be properly consolidat ‘ co-operatives and co-operative farming societies. undertaken to overcome various problems 1. Consolidation of holdin; Indian agriculture and this si is regard. Uneconomic smal fings should also be consolidated by forming’ 2. Overcoming natural factors. Proper steps should be care resulted from natural factors. All these steps include extensive flood control measia®® cof adequate irrigation facilities and supplying adequate quantity of pesticides and insecticides. iques. Indian farmers must apply modern techniques of cultivation iilising modern implements, applying adequate quantity of fertilisers, using bigh yielding variety seeds, by adopting scientific rotation of crops and careful crop planning- ‘Agricultural research nid by earefully intensified and fruits of research should be made available to the Indian farmers. Economic measures must be adopted in order to make the Indian ‘culture more remunerative. Proper steps must be undertaken for the improvement of farm ‘sation and land management. Besides, steps must be taken for the establishment of different of agro-based industries in rural areas ; provision also be made for adequate credit and ting facilities. Moreover, the Government must introduce minimum price support policy, tee minimum prices of the agricultural produce of the country and implement crop-insurance 1¢ to cover the various risks in agriculture. 5, Human Development. For the improvement of agricultural productivity in India, the quality wuld be imparted with adequate general and technical farmers should be improved and they shot lucation. Adequate public health measures should also be undertaken in the rural areas. Farmers ld shed off their fatalism and adopt themselves with changing ideas. Thus the agricultural productivity in India can be improved with the adoption of aforesaid s in the agricultural sector of the economy. it Strategy for Agricultural Sector The Reserve Bank of India (RBI) Annual Report, 1995 observes that there is a need, more than before, to evolve a multi-pronged strategy to bring about sustained growth in agriculture with iphasis on supply side factors. 3. Application of modern techni 4. Economic Measures. 1 net sown area gated land to total Row comes to be about 59 per cent in 2006-07. Thus in the ice of assured and controlled water supply, the agricultural productivity in India is bound to be «Lack of agricultural research, Agricultural research in India is still very poor in comparison reuiements Whar sec ng coded i ret snot even mad available to omers fully for its application. Thus many chronie problems of farmer still remain largely unattended, problems of agricultural operation faced by Toes we have seen Ghat Were gs Gene fam LE: cas cle ene these have resulted in low agricultural productivity and also backwardness of the agricultural tors of the country. 4.2. Remedial Measures to Raise Agricultural Productivity in India iwardness of the agricultural sector and the low agricultural productivity are the two serious Jems of the Indian economy. For improving the lot of the agricultural sector and for raising ‘cultural productivity in India the following measures should be undertaken : 1. Consolidation of holdings. Consolidation of holding is a first step towards the modernisation Indian agriculture and this should be done immediately by enacting proper legislation required this regard. Uneconomic small farms should be properly consolidated and small fragmented Jdings should also be consolidated by forming’ co-operatives and co-operative farming societies. 2. Overcoming natural factors. Proper steps should be undertaken to overcome various problems agriculture resulted from natural factors. Al these steps include extensive flood control measures, sion of adequate irrigation facilities and supplying adequate quantity of pesticides and insecticides. 3, Application of modern techniques. Indian farmers must apply modem techniques of cultivation by utilising modem implements, applying adequate quantity of fertilisers, using high yielding variety of seeds, by adopting scientific rotation of crops and careful crop planning. Agricultural research Should be carefully intensified and fruits of research should be made available to the Indian farmers. 4. Economic Measures. Economic measures must be adopted in order agriculture more remunerative. Proper steps must be undertaken for the improvement of farm foreanisation and land management. Besides, steps must be taken for the establishment of different types of agro-based industries in rural areas ; provision also be made for adequate credit and marketing facilities, Moreover, the Government must introduce minimum price support policy, grantee minimum prices of the agricultural produce of the country and implement crop-insurance Scheme to cover the various risks in agriculture. 5, Human Development. For the improvement of agricultural productivity in India, the quality of farmers should be improved and they should be imparted with adequate general and technical ‘education. Adequate public health measures should also be undertaken in the rural areas. Farmers should shed off their fatalism and adopt themselves with changing ideas. Thus the agricultural productivity in India can be improved with the adoption of aforesaid measures in the agricultural sector of the economy: Present Strategy for Agricultural Sector ‘The Reserve Bank of India (RBI) Annual Report, 1995 observes that there is a need, more than ver before, to evolve a multi-pronged strategy to bring about sustained growth in agriculture with emphasis on supply side factors.

You might also like