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1.Unviable agriculture caused by the low productivity-The main causes for low
productivity of agriculture are broadly of three types:-
a) Human Factors-Human factors are those which are related to training and efficiency of
the farmers.
b) Technical Factors-Technical Factors include techniques and methods of production
c) Institutional Factors-Institutional factors include land holdings and land system.
2. Unfavourable term of trade for agriculture-Terms of trade for most developing countries
are unfavourable. As a result, these countries receive low prices for their exports but
pay high prices for imports. This trend is another greater need for external debt.
3. Higher incidence of indebtedness among the farmers leading to unfortunate incidences
of farm suicides- The percentages of indebtedness among small farmers are relatively
lower than the marginal farmers
Causes of Rural Indebtednes-
a) Unproductive & wasteful expenditures of the loans.
b) Inherited debts.
Plans and Schemes to increase income and
employment of farmers
The government has also prepared developmental and technological initiatives, and policies to double the farmers’
income by 2022–23. Some of the recent developmental initiatives of the central government to raise output
and reduce cost include:-