Agriculture - Some Challenges in Modern India

8/11/2019 Agriculture - Some Challenges in Modern India

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Agriculture Some Challenges in Modern India

Agriculture, the backbone of Indian rural economy, contributes to the overall economic

growth of the country and determines the standard of life for more than 50% of the Indian

population. Agriculture contributes only about 14% to the overall GDP but its impact is felt

in the manufacturing sector as well as the services sector as the rural population has become a

significant consumer of goods and services in the last couple of decades. But during the same

time, growing industrial sector has created its own set of problems to agriculture.

(Note: Some problems are interrelated and have common solutions. Hence I have listed the

solutions separately)

The Intra Sector Problems

1. Fragmented land holding

Nearly 80% of the 140 million farming families hold less than 2 acres of land1. Large

land holdings enable the farmer to implement modern agricultural techniques and boost

productivity. Besides, the number of people dependent on agriculture is also less in a

large farmland as is the case in the Western economies. Small land holdings restrict the

farmer to use traditional methods of farming and limit productivity. As land holdings are

small, more people invariably work on the farms in the rural areas and coupled with the

obsolete technology, farm incomes come down.

2. Irrigation problems

Most of the farming in India is monsoon dependent if monsoons are good, the entire

economy (and not just the agricultural sector) is upbeat and when the monsoon fails,everyone everywhere takes a hit to some extent. For a country that receives the second

highest rainfall in the world and a country with a well extended river system lack of

water can hardly be an excuse. The problem here is of proper management of water or

the lack of it. Irrigation which consumes more than 80% of the total water use in the

country needs a proper overhaul if the country has to improve agricultural output and

boost the overall economy.

3. Seed problems

In the olden days, farmers had their own seed repositories from the previous crop. They

used to select the best seeds from the previous generation and use them to improve the

crop quality in the succeeding generations. But now, most of the farmersespecially the

poor and marginal onesare dependent on seeds sold in the market. Moreover, the HYV

seeds as well as the GM seeds which promise higher yields force the farmers to buy

seeds for every crop. With spurious seeds hitting the market, the farmers woes have

exceeded all limits. Sometimes seeds do not give the stated/claimed yields and farmers

run into economic troubles.

In many cases of GM and HYV seeds, farmers are forced to use high amounts of

fertilisers and pesticides, provide large amounts of water (irrigation) and abide to all the

1http://www.thehindubusinessline.com/industry-and-economy/agri-biz/at-the-

crossroads/article4756751.ece
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other farming requirements that the companies mandate to get the proper yields. A

proper regulation/legislation to hold seed companies accountable for false claims is the

need of the hour as companies use legal loopholes to push the blame on to the farmers in

the case of failed crops.

4.

Sustainability problemsIndian agricultural productivity is very less compared to world standards due to use of

obsolete farming technology. Coupled with this, lack of understanding of the need for

sustainability in the poor farming community has made things worse. Companies

promise higher yields by usage of their fertilisers and farmers, most of the time, exceed

the prescribed limits of fertiliser use. Water usage is also unplanned with some arid areas

misusing the irrigation facilities provided by planting water intensive crops. In areas

where irrigation in the form of rivers and canals is not sufficiently available, ground

water resources are heavily exploited.

Sustainability in agriculture is of utmost importance as many problems faced by farmers

are related to this. Excess fertiliser usage not only makes the plants dependent on

artificial fertilisers but also erodes the land quality, polluted ground water and in case of

a surface runoff, pollutes the nearby water bodies.

Similarly, planting crops which require more water like rice on the basis of irrigation

facilities extended to areas which are water deficient uses up more water than required.

Besides, the excessive evaporation cause salts to accumulate on the fields making them

lose their fertility quickly.

Lack of proper understanding of the need to grow crops sustainably will push farmers

into a vicious circle of debts, heavy use of fertilisers, water mismanagement, low

productivity and thus more debts for the next cycle.5. Over dependence on traditional crops like rice and wheat

Every crop requires certain climatic conditions to give the best yields. Though rice and

wheat are produced in a large area in India, certain areas can readily switch to other

crops to get better productivity. India is importing cooking oil from abroad though we

have the necessary conditions to grow more oilseeds here2. Heavy dependence on

traditional rice and wheat points to the lack of a proper national plan on agriculture.

Excess stocks in a few crops lead to problems in the selling of the produce, storage and

shortage of other essential farm output. Moreover, if the farm output is skewed towards

crops like rice, irrigation and ground water facilities are misused by farmers, which leads

to a host of other problems.

6. Supply channel bottlenecks and lack of market understanding

Supply channel bottlenecks and lack of a proper marketing channel are serious problems

for a farmer who is already burdened with a host of troubles. These are issues which

need to be tackled at the regional, state and national levels. Lack of a proper marketing

channel forces the farmers to distress sale, makes them victims in the hands of greedy

middlemen and ultimately restricts their income.

2http://www.bloomberg.com/news/2013-08-20/india-seen-defying-rupee-plunge-to-import-record-

cooking-oils.html
http://www.bloomberg.com/news/2013-08-20/india-seen-defying-rupee-plunge-to-import-record-cooking-oils.htmlhttp://www.bloomberg.com/news/2013-08-20/india-seen-defying-rupee-plunge-to-import-record-cooking-oils.htmlhttp://www.bloomberg.com/news/2013-08-20/india-seen-defying-rupee-plunge-to-import-record-cooking-oils.htmlhttp://www.bloomberg.com/news/2013-08-20/india-seen-defying-rupee-plunge-to-import-record-cooking-oils.htmlhttp://www.bloomberg.com/news/2013-08-20/india-seen-defying-rupee-plunge-to-import-record-cooking-oils.htmlhttp://www.bloomberg.com/news/2013-08-20/india-seen-defying-rupee-plunge-to-import-record-cooking-oils.html


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An improper marketing and storage channel also leads to storage problems in the years

where productivity is good, leads to poor agricultural exports due to problems in

maintaining quality and in many cases leads to gross wastage of valuable food grains and

other farm output.

Food wastage

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running into thousands of crores of rupees every year is nothing short of acrime in a country where more than 20% is below poverty line and where millions go

hungry day after day. Lack of a national strategy in terms of agricultural production leads

to production of some crops exceeding the requirement and to some crops well below the

minimum limits. The problem is more acute in case of perishable agri output like

vegetables and fruits where estimates of wastage are around 40%4.

7. Government handling of the issue

MSP, overall agricultural strategy of the country, PDS, storage/granaries, lack of export

market creation

India lacks the required number of storage facilities (granaries, warehouses, cold storage

etc) which negates the advantage of having a bumper crop in years of good monsoon.

Exports in agricultural sector are also not very encouraging with a share of just 10% of

the total exports, for a country where more than 50% of population is dependent on

agriculture. The Minimum Support Prices (MSP) offered by the Government is a double

edged sword MSPs protect farmers from being exploited by middlemen but during

times of excess crop, Government runs the risk of an unnecessary fiscal deficit by buying

the excess produce. Lack of proper storage facilities and lack of a proper international

market linkage leads to lower exports and in many cases leads to huge amount of

wastage.

Some Solutions to Intra Sector Problems

1. Pooling of village lands and cooperative farming will ease the burden of fragmented

landholdings. When the farmers form a consortium at the village level, the aggregate

land can be farmed by using the latest technology. Banks too will be willing to lend

money to a village consortium which can be utilised to boost farm productivity, employ

sustainable farming methods, reduce over dependence on fertilisers and thus solve

many problems. The overall risk of a crop failure is less in this case and small farmers

have a higher chance of earning a decent income at the end of the harvest season.

Agricultural intensity also rises when a planned strategy adopted at the village level is

implemented.

Agricultural credit and farm mechanisation for small and marginal farmers will continue

to be difficult unless pooling of farm resources and/or a joint usage of farm technology

are employed5.

2. Irrigation problems can be addressed by Government preferably at the State and

National levels. Though the Government cannot force farmers to produce only the

3http://in.reuters.com/article/2012/07/02/india-wheat-food-malnutrition-crops-

idINDEE86101620120702

4http://articles.timesofindia.indiatimes.com/2013-01-10/india/36257227_1_wastage-india-wastes-tonnes5http://www.thehindubusinessline.com/opinion/root-causes-of-farm-distress/article4746830.ece
http://in.reuters.com/article/2012/07/02/india-wheat-food-malnutrition-crops-idINDEE86101620120702http://in.reuters.com/article/2012/07/02/india-wheat-food-malnutrition-crops-idINDEE86101620120702http://in.reuters.com/article/2012/07/02/india-wheat-food-malnutrition-crops-idINDEE86101620120702http://in.reuters.com/article/2012/07/02/india-wheat-food-malnutrition-crops-idINDEE86101620120702http://articles.timesofindia.indiatimes.com/2013-01-10/india/36257227_1_wastage-india-wastes-tonneshttp://articles.timesofindia.indiatimes.com/2013-01-10/india/36257227_1_wastage-india-wastes-tonneshttp://articles.timesofindia.indiatimes.com/2013-01-10/india/36257227_1_wastage-india-wastes-tonneshttp://articles.timesofindia.indiatimes.com/2013-01-10/india/36257227_1_wastage-india-wastes-tonneshttp://www.thehindubusinessline.com/opinion/root-causes-of-farm-distress/article4746830.ecehttp://www.thehindubusinessline.com/opinion/root-causes-of-farm-distress/article4746830.ecehttp://www.thehindubusinessline.com/opinion/root-causes-of-farm-distress/article4746830.ecehttp://www.thehindubusinessline.com/opinion/root-causes-of-farm-distress/article4746830.ecehttp://articles.timesofindia.indiatimes.com/2013-01-10/india/36257227_1_wastage-india-wastes-tonneshttp://articles.timesofindia.indiatimes.com/2013-01-10/india/36257227_1_wastage-india-wastes-tonneshttp://in.reuters.com/article/2012/07/02/india-wheat-food-malnutrition-crops-idINDEE86101620120702http://in.reuters.com/article/2012/07/02/india-wheat-food-malnutrition-crops-idINDEE86101620120702


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Conclusion

Agriculture is a sector that feeds millions directly, has a considerable influence on the whole

economy and in a country like India well being of the agricultural sector as a whole brings a

psychological advantage to a multitude of other sectors. Millions depend on the farm lands

for their sustenance and thus it makes it all the more important to eradicate the problems inthis field. India cannot develop in the actual sense if its farmers lead a life of dire poverty and

helplessness. A careful balance of industrialisation and agriculture is crucial for the overall

prosperity of the nation.

Other References

1. http://www.indianspices.com/html/wp_wcs.htm

2. http://articles.timesofindia.indiatimes.com/2013-07-27/india-

business/40832327_1_bumper-harvest-panel-discussion-madan-sabnavis

3. http://paepard.blogspot.in/2013/07/utilization-of-fruit-and-vegetable.html

4.

http://www.foodnavigator-asia.com/Policy/India-damned-by-food-wastage-report

by S. Venkateswara Prasad
http://www.indianspices.com/html/wp_wcs.htmhttp://www.indianspices.com/html/wp_wcs.htmhttp://articles.timesofindia.indiatimes.com/2013-07-27/india-business/40832327_1_bumper-harvest-panel-discussion-madan-sabnavishttp://articles.timesofindia.indiatimes.com/2013-07-27/india-business/40832327_1_bumper-harvest-panel-discussion-madan-sabnavishttp://articles.timesofindia.indiatimes.com/2013-07-27/india-business/40832327_1_bumper-harvest-panel-discussion-madan-sabnavishttp://articles.timesofindia.indiatimes.com/2013-07-27/india-business/40832327_1_bumper-harvest-panel-discussion-madan-sabnavishttp://articles.timesofindia.indiatimes.com/2013-07-27/india-business/40832327_1_bumper-harvest-panel-discussion-madan-sabnavishttp://paepard.blogspot.in/2013/07/utilization-of-fruit-and-vegetable.htmlhttp://paepard.blogspot.in/2013/07/utilization-of-fruit-and-vegetable.htmlhttp://www.foodnavigator-asia.com/Policy/India-damned-by-food-wastage-reporthttp://www.foodnavigator-asia.com/Policy/India-damned-by-food-wastage-reporthttp://www.foodnavigator-asia.com/Policy/India-damned-by-food-wastage-reporthttp://paepard.blogspot.in/2013/07/utilization-of-fruit-and-vegetable.htmlhttp://articles.timesofindia.indiatimes.com/2013-07-27/india-business/40832327_1_bumper-harvest-panel-discussion-madan-sabnavishttp://articles.timesofindia.indiatimes.com/2013-07-27/india-business/40832327_1_bumper-harvest-panel-discussion-madan-sabnavishttp://www.indianspices.com/html/wp_wcs.htm

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Agriculture - Some Challenges in Modern India