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Contents

Issues in Indian Agriculture....................................................................................................................................... 2


1.1 Agricultural land at risk................................................................................................................................. 2
1.2 Poor utilization of water resources .............................................................................................................. 2
1.3 Unemployment among agricultural workers ............................................................................................... 2
1.4 Falling Investment in Agriculture.................................................................................................................. 3
1.5 Subsidy and Related Issues ........................................................................................................................... 3
1.6 Harvest and post-harvest losses ................................................................................................................... 3
1.7 Minimum Support Price (MSP) and Related Issues ...................................................................................... 3
1.8 Land Size ....................................................................................................................................................... 3
1.9 Low crop yields ............................................................................................................................................. 4
1.10 Dependence on monsoon ............................................................................................................................ 4
1.11 Low share in global markets ......................................................................................................................... 4
1.12 Indebtedness and farmer suicides................................................................................................................ 4
1.13 Poor Linkage with Industrial Sector .............................................................................................................. 4
2 Concept Check ...................................................................................................................................................... 5

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Issues in Indian Agriculture

1.1 Agricultural land at risk

At 169.6 million hectares, India’s cultivated landmass is the largest in the world. But the Government of India’s top
research institute reports that nearly 60% of agricultural land is at risk because of fertilizer misuse, poor cropping
practices and soil nutrient deficiencies.

1.2 Poor utilization of water resources

India uses 13% of the world’s extracted water and 87% used for irrigation. Irrigation water use efficiency is very
low. 35-40% efficiency in surface irrigation such as flooding or canals, and 65-75% efficiency when pumping
groundwater. These unsustainable practices are depleting the country’s aquifers. One of the recommendations of
the M.S. Swaminathan Committee was to reform irrigation resources and its distribution among farmers. The
commission also suggested the use of rainwater harvesting, water level recharging to increase water supply.

1.3 Unemployment among agricultural workers

55% of the population is engaged in agricultural production. As farms are divided among family members, average
farm size today is half what it was 40 years ago. Unemployment among agricultural workers rose from 9.5% in 1993-
94 to 15.3% in 2004-05.

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1.4 Falling Investment in Agriculture

The Gross Capital Formation (GCF) in agriculture as a percentage of the total GCF in the economy has fallen from
8.5 % in Financial Year 2011-12 to 6.5 % in Financial Year 2018-19. This is because the share of private investment
has shrunk. Though public investment has gone up it is not sufficient to check the slide or keep the GCF at FY12
level.

1.5 Subsidy and Related Issues

Government subsidies to farmers for fertilizer, electricity and irrigation increased more than eightfold between
1990-91 and 2006-07. Areas receiving the highest subsidies regularly underperform those with lower subsidies.
Government subsidies for buying and distributing food grains to low income and disadvantaged households
grew from 2.2% of agricultural GDP during the 1990s to 5% in the 2000s, crowding out investments in
agricultural education, research, technology and extension.

1.6 Harvest and post-harvest losses

Ministry of Agriculture reports that from 2005-2007, 30% of harvest and post-harvest economic losses came from
the fruit and vegetable sectors, although that sector comprised only 13.6% of total production.

1.7 Minimum Support Price (MSP) and Related Issues

• Selective Procurement: The government declares MSP for 23 crops, only wheat and paddy (rice) are
procured in large quantities as they are required to meet the requirement of the Public Distribution
System (PDS), which is about 65 million tonnes.
• Stagnant Rates of MSP: The government declaration of Minimum support prices do not increase at par with
increase in cost of production.
• Unequal Access: The benefits of this scheme do not reach all farmers and for all crops. There are many
regions of the country like the north-eastern region where the implementation is too weak.
• Non-Scientific Practices: MSP leads to non-scientific agricultural practices whereby the soil, water is
stressed to an extent of degrading ground water table and salinisation of soil.

1.8 Land Size

• Decreasing Area: Area under agriculture has been shrinking, it reduced from 159.5 million hectares (mn ha)
in 2010-11 to 157 mn ha in 2015-16.
• Increase in Land Holdings: The number of operational holdings has been rising (increased from 138.3
million to about 146 million) owing to increasing population. This leads to falling average landholdings’
size of farmers, which has come down from 1.2 ha to about 1.08 ha.
• Forced Selling: Smaller landholdings produce smaller pockets of produce, aggregation of which becomes
essential for even a trolley-load to be carried to an Agricultural Produce Market Committee mandi or a
nearby market. Due to small holdings caused by fragmentation, small and marginal farmers are forced to
sell their produce at the farm gate itself. This is especially so in states that have a weak network of APMC
mandis.
• No Access to Modern Technology: Bringing new technologies and practices to such a large number of
smallholders scattered over a vast countryside and integrating them with the modern input and output
markets is a huge challenge for Indian agriculture.

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1.9 Low crop yields

India has reported a record food grain production of an estimated around 296 million tonnes in recent years.
Production of food grains has seen a rise over the last few years with India being the largest producer of pulses and
the third largest producer of cereals in the world. Likewise, yield of food grains has increased as well; however, it
lags when compared with other agrarian economies. For instance, India accounted for 24 percent of the world
pulses production in 2017. While in terms of yield (664 kg/hectare) it was lowest among the top 10 countries, well
below the global average (1009 kg/hectare). The case is the same for other crops as well. India, despite being the
second-largest producer of paddy and wheat after China, reports low yield compared to other countries and below
the world average.

1.10 Dependence on monsoon

Reliance on seasonal rainfall hampers productivity. Additionally, change in climatic conditions and erratic weather
patterns such as cyclones and droughts can impact yields of agricultural crops. The growth of India’s agriculture
sector has been dependent on monsoons, and as a result, it has been volatile.

1.11 Low share in global markets

Another positive development amidst the pandemic for the sector has been an uptick in exports of agriculture
commodities between March and September. Overall, while India has emerged as an agri-exporter nation with
regards to crops such as rice, spices, tea, sugar etc., the share of India’s agricultural exports in world trade remains
low. The share of agri-exports to the country’s total merchandise exports needs to improve as well. It has remained
in the range of 12 percent on an average over the last five years, falling to 11.9 percent in 2018-19, from a high of
20.33 percent in 1996-97.

1.12 Indebtedness and farmer suicides

The average monthly income of an Indian agriculture household was estimated at Rs 6,426, with a wide-spread
disparity across states, ranging from Rs 18,059 in Punjab to Rs 3,558 in Bihar. About 52 percent of agricultural
households in India are indebted. Nearly 64 percent of the marginal farmers (holding land less than one hectare)
or agricultural households are indebted, followed by small (1 to 2 hectares) agricultural households (18 percent).
As many as 10,000 suicides were reported in the farming sector in recent years, of which 58 percent were
farmers/cultivators and remaining were agricultural. Over 86 percent of agricultural land-holdings belong to the
marginal and small farmers, according to the Agriculture Census 2015-16.

1.13 Poor Linkage with Industrial Sector

Indian agriculture in most parts of the country has a very limited forward linkage with other activities. The links
between agriculture and industry in terms of labour and material inputs are still very weak. The existing links are to
provide raw materials for agro-based industries and a provider of raw materials to the industrial sector.

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2 Concept Check

Q. Indian agriculture is facing which of the following challenges?


1. Small land size
2. Harvest and post-harvest losses
3. Increasing investment in agriculture
4. Dependance on monsoon
Select the correct answer using the code given below:
(a) 1, 3 and 4 only
(b) 1, 2 and 4 only
(c) 1 and 4 only
(d) 1, 2, 3, and 4
Answer: B

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Our 6 step formula to become an RBI Manager | 30

Our 6-Step Formula to Become an RBI Manager


What is the 6-Step Formula?

Set a
clear goal #1
Always remember that when goals are vague, outcomes are vague. So does it mean that you
must set only 1 and clear goal of clearing the RBI Grade B examination? You may. Nothing wrong
with it. We, however, recommend following a Plan A and Plan B approach. And no, Plan B here
does not mean a backup career option! What it means is that you should design your Plan A and
Plan B exams in such a manner that 1) the preparation of your Plan A exam/s ‘must’ automatically
lead to atleast 80% preparation of Plan B exam/s and 2) when you are devoting time to study for
Plan B exam/s, it must automatically strengthen your preparation for Plan A exam/s.
For example – Let’s say your Plan A exam is to crack the RBI Grade B exam, what should be your
Plan B? The most ideal Plan B will be the SEBI Grade A exam. How? Because it checks both
points as explained above – preparation of RBI Grade B automatically leads to the preparation of
80% syllabus of SEBI Grade A and when you are devoting time to study anything for SEBI Grade
A, it is actually strengthening your preparation for RBI Grade B as well.

Understand
#2 the exam
The syllabus and previous year questions are like the 2 headlights of your car of preparation.
You miss one of these and your car will meet with an accident, let me guarantee you this right
here! The biggest blunder aspirants commit is that they do not define the scope of the syllabus
of the examination and prepare under the impression that anything and everything can be asked
in the examination which is even remotely related to the syllabus!

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Our 6 step formula to become an RBI Manager | 31

Hell no! This is NOT the case. Download and print a copy of the syllabus and then do the same
for previous year questions. Go through the syllabus atleast 10 times and then go through the
previous year questions (year wise) and see for yourself what are the important topics and in
what depth they need to be studied for the examination. Believe me, more than 90% of the so-
called sincere aspirants do not do this.

Shortlist
Resources #3
Based on step 2, now is the time to shortlist your study sources. Once you prepare a list of the
resources you will follow, DO NOT get swayed by new material that keeps flooding the market
through social media platforms! Keep your head down and focus on completing your study
sources. Yes, once you are done with your sources, you can move to a secondary source but not
before that!

Design a
#4 Time Table
This is a very important step – you must design a time table for yourself. This time table is for
‘you’ and ‘you’ alone. Do not compare your timetable with others, some like studying early in the
morning, some like to burn the midnight oil, some can sit at a stretch for 6 hours, some study for
2 hours and take a break and then study again. Some study on all 7 days, some study for 5 days
and take a 2-day break. Whatever! The point is to have a timetable that ‘works’ for ‘you’. It is not
meant to earn a shower of praises from your parents, friends, or peers!

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Our 6 step formula to become an RBI Manager | 32

Develop
Consistency #5
Ah consistency! The ever-elusive thing! The secret to developing consistency is to make ‘micro
easy targets’. How? Let’s compare 2 situations. Student A makes a plan that he will study 8 hours
every day starting tomorrow and sets a goal for himself for the next day – cover 50 pages of
current affairs magazine, 20 pages of motivation theories from a book, 50 questions of ratio &
proportion and write 1 essay. He starts his day full of energy but towards the end of the day finds
himself in quite an uncomfortable position realizing that only 50% of the target has been
covered. He cannot sleep comfortably that night and gets up the next morning tired and
frustrated. Now he has to complete the pending tasks of Day 1 as well as cover whatever he
decided for Day 2 as well! Quite an uphill task, don’t you think?

On the other hand, Student B makes a plan that he will also study 8 hours a day and sets a goal
of completing 20 pages of current affairs magazine, 10 pages of motivation theories and 1 essay.
Now, this student will complete his target ahead of schedule and having done that feel elated,
joyful and full of confidence! This will lead to a good night’s sleep and hence even higher energy
for the next day!
This is how you make ‘micro’ and ‘easy’ targets and achieve them daily and move ahead with
consistency.

Develop
#6 Faith
Always think from your mind and feel from your heart. If you reverse this sentence, you will get
trapped in ‘emotions’. Being emotional isn’t bad at all, its good! Getting trapped in emotions is
what is bad! Once you complete steps 1-5, you will start to develop faith in yourself. Have a little
trust in your mentors as well, talk to them, mail them, get in touch and see how they can help
you!

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Our 6 step formula to become an RBI Manager | 33

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Who We Are
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the vision to provide a quality content and a much-needed mentorship to the students who are
preparing for regulatory bodies' exams. With this vision, they also had a crystal clear WHY of
that vision; “to create a nurturing ecosystem for the aspirants, so that they can feel safe,
guided and mentored". As of this moment in time, every member of our team looks back at the
initial reason for starting EduTap and appreciates that we are living up to our creed - because
every other aspect of what we do helps us achieve our ultimate goal. Yes, this is not achievable
in its entirety but, the point is we try. The point is we aspire. The point is we take the above
statement as our compass that guides our thoughts, behaviour and actions. The whole point is
we feel inspired to come to work and feel fulfilled at the end of the day that we did all we could,
with everything we got to 'try' and achieve the ideal. We at EduTap live by this value statement.
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What Makes Us Different?


Our student-centric services, we do not deny the fact that content is in abundance in the
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patiently acknowledge the problems of the aspirants (even if they are not our paid subscribers)
and try to resolve them to the maximum possible extent.

Mr. Anchit Mr. Deepak


Garg Garg
Co-Founder Co-Founder

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