Name of Institution

Module 5

Indian Economy (ECON – 201)

Agriculture
 Coverage Name of Institution

• Nature and importance;

• Trends in agricultural production and productivity;
• Factors determining productivity;
• Land Reforms;
• New agricultural
• strategy and green revolution;
• Rural credit,
• Agricultural marketing.

2
 Introduction Name of Institution

• Agriculture can be defined as the art, the science, and

business of cultivating crops and livestock for economic
purposes. 
• At certain stages of human development, agriculture
used to be the only known means of living.

• It is derived from the Latin terms ager referring to the soil

and cultura to its cultivation.  
• Agriculture is a broad term encompassing all aspects of
crop production, horticulture, livestock farming, forestry
etc.

3
 Name of Institution

• A – Activities on the
• G – Ground for
• R – Raising
• I – Intended
• C – Crops for
• U – Uplifting
• L – Livelihood
• T – Through the
• U – Use of
• R – Rechargeable
• E – Energies

4
 Name of Institution

• Scope and Importance of Agriculture

• Provides employment:
• Agriculture has the contribution of 16% in the
gross domestic product (GDP) of the country. The
agricultural sector also provides livelihood to two-
thirds of the population. The agricultural sector is
responsible for the employment of 58% of
country’s workforce.
•

5
 Name of Institution

• Significant contribution in country’s

exports:
• This sector accounts for about 15% of the
total export earnings and provides raw
material to almost all the industries i.e.
textiles, silk, rice, rubber, paper, flour mills,
milk products industrie

6
 Name of Institution

• An important source of resource

mobilization:
• As the people in rural areas are not very
rich, it proves as one of the biggest
markets for low-priced consumer goods.
•

7
 Name of Institution

• Better Agriculture better is the Food

Security of the country:
• If the agricultural sector of a country is
strong, it acts as-as a wall in maintaining
food security and in the process, national
security as well.

8
 Name of Institution

• Important allied sectors:

• There are many allied sectors of agriculture
like horticulture, poultry, dairy, and fisheries.
• They have a very important role in the
development the rural masses.
• So there is a need for the balanced
development of agriculture and allied
sectors.

9
 Agriculture production and Name of Institution

productivity
• https://www.yourarticlelibrary.com/
agriculture/agricultural-production-and-
productivity-in-india/62867

10
Factors determining productivity Name of Institution

• . Pressure of Population on Agriculture:

• The high man-land ratio in the developed
countries of the world is contrasted by low
man-land ratio in the developing countries
(of Asia in particular).
• Overcrowding in agriculture has resulted
in fragmentation of landholdings and
pseudo- unemployment in agriculture.

11
 Name of Institution

• Rural Environment:
• The developing countries are
characterised by mass illiteracy and a
conservative, superstitious social
atmosphere in rural areas.
• The farmers, in general, are also reluctant
to use modern methods of agriculture.

12
 Name of Institution

• Role of Non-farm Services:

• Non-farm services such as finance, marketing, etc.
influence agricultural productivity.
• In developed economies, vigorous governmental
backing to farmers in the form of credit and crop
insurance, for instance, has insulated them from
the risks of a market economy.
• On the other hand, the presence of intermediaries
in agriculture has harmed the economies of
developing countries to a great extent.
13
 Name of Institution

• Size of Holdings:
• The highly populated countries of Asia are
characterized by low to very low per capita
landholdings, which hamper mechanization.
• Moreover, small holdings cause great
wastage of time, labour and cattle. Moreover,
adopting scientific methods of cultivation and
application of HYV seeds is impossible in
small holdings.
14
 Name of Institution

• Pattern of Land Tenure:

• In India, for example, the abolition of the
zamindari system failed to improve the
condition of tenants.
• The cultivators have to pay high rents for
their lands.
• Under such adverse circumstances,
productivity is a casualty.
15
 Name of Institution

• Technological factors are also responsible for

high/low productivity.
• The farmers of developing countries generally
use traditional implements in contrast to the
improved implements used in developed
countries such as tractors, steel ploughs,
sugarcane crushers, pumping sets, etc.
• Poor technique is one of the most important
causes of low productivity in agriculture.

16
 Land Reforms Name of Institution

• Land reform refers to efforts to reform the

ownership and regulation of land in India.
• Those lands which are redistributed by
the government from landholders to
landless people for agriculture or special
purpose is known as Land Reform.

17
 Categories Name of Institution

• There are six main categories of reforms:

• Abolition of intermediaries (rent collectors under the pre-
Independence land revenue system);
• Tenancy regulation (to improve the contractual terms
including the security of tenure);
• A ceiling on landholdings (to redistributing surplus land to
the landless);
• Attempts to consolidate disparate landholdings;
• encouragement of cooperative joint farming;
• settlement and regulation of tenancy.

18
 Green Revolution Name of Institution

• https://www.yourarticlelibrary.com/green-
revolution/new-agricultural-strategy-green-
revolution-in-india/62859

19
 Rural Credit Name of Institution

• https://www.vedantu.com/commerce/rural-
credit

20
 Agriculture Marketing Name of Institution

• http://jnkvv.org/PDF/
10042020083748concept%20of%20ag
%20markeing_EgEcon530.pdf

21
 Name of Institution

•THANK YOU

22