Unit 2.

1 Transformation of Indian Agriculture

Question 1 Discuss the changes that happened and the challenges faced by the agricultural sector
in the post-independence era. Also, it is said that the growth rate in agriculture during the years
2009-10 to 2013-14 was the highest growth rate recorded in Independent India. Elucidate.

INTRODUCTION
With food grain production of 69.3 million tonnes in the fiscal year 1960-61 to 264.35 tonnes in
the fiscal year 2013-14, Indian agriculture has come a long way. The growing population became
a key driver for agricultural products and with time, rising urban and rural incomes also gave a
boost to attractive opportunities in the Indian agricultural sector. In this paper, we will see how the
Indian agriculture industry transformed since the 1950s by diving into different policies and
reforms, particularly over the last 5 years- where the transformation took place at an unprecedented
pace and witnessed disruptive breakthroughs. India has experienced structural transformation, with
the decreasing contribution of the agriculture sector in GDP. Despite the fall in the contribution of
the agriculture sector in GDP, it employs around 48% of the labour force in India. Theory of
"Unbalanced growth" discusses sectoral linkages and also indicates that agriculture could not
become a leading sector due to its weak backward linkages. Important facet of progress in
agriculture is its success in eradicating its dependence on imported food grains. All these
developments in Indian agriculture are contributed by a series of steps initiated by the Indian
Government. And the current focus is on improving the farmers income along with increasing
production.
I-SECTION
Changes
1. Growth in agricultural GDP: The share of agriculture in the gross domestic product (GDP)
has reached almost 20 per cent for the first time in the last 17 years, making it the sole bright spot
in GDP performance during 2020-21, according to the Economic Survey 2020-2021.
2. Volatility in agricultural production: The contribution of agriculture production to GDP is
quite volatile. The coefficient of variation has declined from 2.76% during 1961-1988, to 1.87%
during 1988-2004 and to 0.75% during 2004-2014.
3. Decline in rise of agricultural prices: Since 1950 (and even earlier) agricultural prices have
been on a long downward trend. Price rise for agriculture declined and affected the incomes of
farmers adversely.
Three levels of structural changes
• diversification within the agriculture sector - Crop diversification refers to the addition of new
crops or cropping systems to agricultural production on a particular farm taking into account the
different returns from value-added crops with complimentary marketing opportunities.
• diversification from agriculture to allied activities like livestock and fisheries - in the case of
the value of output in agriculture and allied activities, the share of Nutri-Cereals, pulses declined
while the shares of fruits and vegetables, livestock and fisheries rose over time.
• structural change from agriculture and allied to the rural non-farm sector- The increasing
middle-class due to rapid urbanisation, increasing per-capita income, increased participation of
women in urban jobs and the impact of globalisation have been largely responsible for the diet
diversification in India. Demand for non-food grain items has been increasing. Diversification to
high-value crops and allied activities is one of the important sources of raising agricultural growth.
• Agro-processing and retail trade - The food processing industry is one of the largest industries
in India and ranks fifth in terms of production, consumption and exports. The Indian food industry
is poised for huge growth, increasing its contribution to the world food trade every year. In India,
the food sector has emerged as a high-growth and high-profit sector due to its immense potential
for value addition, particularly within the food processing industry.
• Changes in rural India - Studies show that there has been a significant rise in some rural
activities like rural non-farm employment, public employment, etc. A National Council of Applied
Economic Research (NCAER) study has stated that MGNREGA has reduced poverty overall by
up to 32% and has prevented 14 million people from falling into poverty.
• Rural non-farm employment - At the all India level, the share of the non-farm sector in rural
areas increased from around 19% in 1983 to 36% in 2011-12. Largest increase occurred between
2004-5 and 2011-12. First, there was an absolute decline in the number of agricultural workers
after 2004-05. The entire growth of employment in rural areas during 2004-05 and 2011-12 was
due to non-farm employment.
• Doubling farm income - In this background, the goal set to double farmers' income by 2022-23
is central to promote farmers’ welfare, reduce agrarian distress and bring parity between the
income of farmers and those working in non-agricultural professions. All India Rural Financial
Inclusion Survey of NABARD provides information on the income of agricultural households and
non-agricultural households, while the Situation Assessment Survey of NSSO shows that 35%
income of agricultural households is from cultivation, 34% from wage labour, 16% from salaries
and 8% from livestock. The NABARD survey also shows that 13%, 50%, 29% and 9% of
agricultural households depend on one single, two, three and four sources of income respectively.
This proves that people engaged in agriculture depend not just on farm income but on multiple
sources of income.
Challenges
1. Climate change: Agriculture is extremely vulnerable to climate change. Higher temperatures
eventually reduce yields of desirable crops while encouraging weed and pest proliferation.
Changes in precipitation patterns increase the likelihood of short-run crop failures and long-run
production declines.
2. Urbanisation: With large migrations from rural to urban areas, there have been significant
changes in land utilisation. Land converted to urban uses is increasing, though it has little effect
on total crop production.
3. Problems of hunger and the triple burden of malnutrition: To meet food security goals in
today’s world, we must consider the stresses on food systems. Rising demand for food, driven by
population growth and dietary change, along with the effects of climate change and other
environmental problems, have compounded what is known as the triple burden of malnutrition.
About 1 billion people consume too few calories, at least 3 billion don’t have sufficient nutrients,
and over 2.5 billion consume too much.
4. High and increasing inequality: Inequality has increased in both developed and developing
countries. At the economy level, the key source of inequality at the global level has been
technological change favouring higher skills.
5. Changes in political factors: Policies for agriculture consist of government decisions that
influence the level and stability of input and output prices, public investments affecting agricultural
production, costs and revenues and allocation of resources. Political factors interact with
agricultural systems both directly and indirectly.
II-SECTION
The growth rate in agriculture in the period 2009-10 to 2013-14 was 4.3% per annum, which
is one of the highest growth rates recorded in independent India.

● In the fiscal year ending June 2011, with a normal monsoon season, Indian agriculture
accomplished an all-time record production of 85.9 million tonnes of wheat, a 6.4%
increase from a year earlier. Rice output in India hit a new record at 95.3 million tonnes, a
7% increase from the year earlier. The government has taken several steps for increasing
investment in the agriculture sector such as enhanced institutional credit to farmers,
promotion of scientific warehousing infrastructure for increasing shelf life of agricultural
produce, setting up of an agri-tech infrastructure fund for making farming competitive and
profitable, and developing commercial organic farming. India, being an agrarian economy,
has its major workforce employed in the agriculture sector which contributed majorly in
recording the highest growth rates during these years.
● Total production of food grains increased from 51 million tonnes in 1950-51 to 252 million
tonnes in 2015-16. Agricultural yield is the quantity of a crop produced on one unit of
land. The agricultural yield of food grains has increased by more than four times since
1950-51, and was 2,070 kg/hectare in 2014-15. India has recorded an average annual
economic growth rate of 8 per cent during the 11th Five-Year Plan. During these years, the
economy was in general doing quite well. The contribution of each and every sector to the
GDP was commendable.

CONCLUSION
Agriculture is a state subject according to the Indian Constitution. Agriculture transformation has
to be viewed more holistically in terms of rural transformation and urban linkages. Policy reforms
like giving equal importance to macro policies and global trends, taking agricultural and non-
agricultural sectors hand in hand, shift from cereal-based to non-cereal-based policies, providing
remunerative prices to farmers, etc should be implemented.
As a concluding remark, we would like to say that the agricultural sector plays an extremely
important role in the overall welfare of farmers as well as ensuring food security in India. Despite
the progress in the mechanisation of the agricultural sector, the challenges that farmers face due to
the high cost of input and machinery act as an obstacle. To make the agricultural sector more
productive, there is an immediate need to focus on sustainable mechanisation and make it
accessible. India highly subsidises the agriculture sector, and as a result, it is important to invest
in technology that is efficient and environmentally sustainable. Conservation of water and
electricity should be a priority and should receive encouragement from the state. The government
should also support, encourage and invest in companies that work towards agricultural
transformation in India.

Question 2: How is it important that in order to achieve the goals of agricultural development,
there is a need for sustainability and strengthening institutions for sustainable efficiency. Discuss.

Introduction
The Brundtland Commission (1987) defined sustainability as "development that meets current
demands without jeopardising future generations' ability to meet their own needs." Inadequate
policies have resulted in significant environmental damage due to faulty incentives. Water and
land quality issues have also arisen as a result of intensive livestock raising. Soil erosion, loss of
organic carbon, nutrient imbalance, and salinization are all contributing to the slow degradation of
soils. Waterlogging, soil erosion, and groundwater depletion are just a few of the issues that
contribute to unsustainable practices.
As early as 1968, Dr. M.S. Swaminathan pleaded with farmers not to jeopardise long-term output
potential for short-term benefit. He argued that the green revolution should be transformed into an
evergreen revolution. Ecological ideas are being included into the development and spread of
technology. He characterised the evergreen revolution as an increase in productivity that lasts
indefinitely without causing environmental harm. Unfortunately, environmentally unwise public
policies, such as the provision of free power, have resulted in the aquifer's overexploitation.

Climate change and agriculture

Agriculture is the most vulnerable industry to climate change due to its strong reliance on weather
and climate, as well as the fact that farmers are typically poorer than city dwellers.
Economic survey 2017-18 (GOI,2018) found a long-term trend of rising temperatures, decreased
average precipitation, and an increase in extreme precipitation occurrences using district-level
data. The findings were:
 ➢ when temperatures are higher, rainfall is substantially lower, and the number of dry days
is higher than normal.
➢ The impacts of climate conditions are significantly more unfavorable in unirrigated areas
than in irrigated areas.
➢ Extreme temperature rainfall shocks impair yields for Kharif and Rabi.

Policies on Sustainability and Climate change

A critical stage is to equip farmers with a policy environment that promotes long-term agricultural
growth. It encourages farmers to use specialised technologies that boost agricultural productivity
while also improving environmental sustainability. Higher agricultural growth is possible, but it
must be sustainable in terms of consuming fewer resources and requiring fewer inputs.
Agriculture's overall value of output grew at a rate of 3.8 percent each year during the 11th Five
Year Plan, which was the greatest since independence. Intermediate inputs for agriculture and
related industries grew at the fastest rate throughout the 11th plan, at 4.3 percent each year. Another
concern for long-term sustainability is improving soil quality and water management.
Subrahmanian suggested the CACP to include social expenses in its MSP estimates. Swaminathan
proposed two approaches to promoting evergreen revolutions. The first is organic farming, which
produces very little in comparison to the rest of the country's production. Green agriculture, which
includes environmentally sound methods such as conservation farming and integrated pest
management, is the second approach.

According to the Economic Survey 2017-18, India needs to expand irrigation due to rising water
scarcity and decreasing groundwater resources. According to the IPCC Special Report 2018,
global warming would likely surpass 1.5 Celsius between 2030-52 if current trends continue.
Climate-smart agriculture (FOA) is defined as agriculture that promotes production, resilience,
reduces GHG emissions, and contributes to the accomplishment of national food security and
development goals in a sustainable manner. It includes examples of climate-smart agriculture
systems such as soil and nutrient management, water harvesting and usage, pest and disease
control, resilient ecosystems, and genetic resources, among others. Harvesting and processing
efficiently can reduce post-harvest losses and preserve food quantity, quality, and nutritional value.
Climate-smart agriculture provides a triple win strategy for smallholders: a) increasing smallholder
productivity for nutrition crops, b) assisting smallholders in adapting to climate change, and c)
reducing agriculture's role to climate change.

Need for an effective Climate Resilient Agriculture (CRA)

First, in light of climate-related hazards, varied agricultural systems are required. Pulses are
legumes that promote soil fertility while also assisting in the attainment of self-sufficiency.
Crop insurance, on the other hand, has the potential to be a game-changer provided the
prerequisites of affordable premiums and a SI that covers the GVO are met, as well as speedy
claim settlements using mobile and satellite technology. MGNREGA could be another tool for
CRA. It revealed a decrease in vulnerability as a result of MGNREGA activity and the
environmental benefits that resulted.
The third point concerns the role of research and extension in promoting CRA. Farmers will be
encouraged to use climate-resilient technology as a result of research findings and extension
systems. NICRA, for example, was founded by ICAR in 2011. Technologies such as on-farm water
harvesting in ponds and supplemental irrigation were enthusiastically implemented by the farmers
in NICRA.
Other policy frameworks and strategies
Conservation agriculture is a non-conventional method of production. It is mostly found in the
rice-wheat system of the country's indo-Gangetic plains. The advantages include a) increased
livelihood security; b) reduced soil erosion; c) increased carbon sequestration; d) improved
resource use efficiency; e) improved soil health, and f) reduced greenhouse gas emissions.
There is no budget. Shubhash Palekar promotes natural farming, which avoids the use of fertilisers
and pesticides. It is used by 5 million farmers and relies entirely on natural resources like soil,
water, air, and cow pee.
Meat and dairy products utilise a lot of resources and contribute to greenhouse gas emissions,
therefore vegetarian vs non-vegetarian eating and climate change are a big deal. Grain is often
used as fodder for livestock. Meat and cattle consumption in India will rise as incomes rise.
Vegetarianism aided in the conservation of natural resources to some extent.
There are two sorts of inequities in consumption and climate change. The first is the disparity in
consumption patterns between developed and developing countries. The second issue is inequity
in Indian consumption patterns between the rich and the poor.

Institutions and governance

Increased subsidies in the agricultural sector are a result of inefficient government. In order to
reduce inequality, effective implementation is critical.
Farmer producer organisations (FPOs) can help small farmers achieve economies of scale in
input and output marketing by bringing them together. They have the ability to participate at any
point along the value chain. The rising costs of purchased inputs, as well as quality issues such as
poor and counterfeit seeds and insecticides, have all been identified as major proximal causes of
crop failures.
Institutional elements are critical for increasing canal irrigation efficiency. Water pricing
increases alone may not be sufficient to ensure financial sustainability unless institutions to recover
water charges are in place.
Agriculture programmes run by the federal and state governments include a) a solid institutional
platform, b) enhanced agricultural technology, and c) a watershed programme.
Finally, agriculture policy must be developed with the input of stakeholders.

If we define sustainability as the obligation to leave the world in the same condition as we found
it, then yes. That strikes us as glib but ultimately impractical. To carry out UNESCO's literal
prohibition would imply that no mineral resources would be used; it would also imply that no
permanent growth or construction would take place. It is our responsibility to act in such a way
that future generations will have the opportunity or capacity to be as prosperous as we are. As a
result, we might think of sustainability as a form of distributional equity. It all boils down to who
gets what. It's about people sharing their happiness now and in the future.

CONCLUSION
Higher agricultural growth is possible, but it must be sustainable in terms of consuming fewer
resources and requiring fewer inputs. Agriculture's resilience must be strengthened. Climate-smart
agriculture is being debated around the world as a way to cut GHG emissions and boost resilience.
According to the FAO, farmers' technical capability, particularly among smallholders, must be
increased in order for them to embrace climate-smart agricultural methods. For agriculture to
achieve growth, equity, and sustainability, institutions and governance must be strengthened.
Institutions are critical for better governance and execution throughout the agricultural value chain
and food systems.
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