INDIAN AGRICULTURE: Constraints and how did it change after liberalization

INTRODUCTION

Indian Agriculture had reached a stage of

development and maturity much before

the now advanced countries of the world embarked

on the path of progress. Till the

middle of the 18th century there was a proper balance

between industry and agriculture and both of them

flourished hand in hand.it was only after the advent

of the alien British government that agriculture lost

the fibre of balance and the economy of the country

was badly shattered.

Some recent Facts on Indian Agriculture

Agriculture and allied activities contribute to country’s GDP about 14.2%

India is the largest producer, processor and exporter of cashew in the whole world.

As per the final estimates the production of food grains during 2008 2009 was 234.47 million tonnes.

Continued.. National food for work programme

was launched on November 14,2004 The top producer of pulses in india –

Madhya Pradesh.

India is the largest producer of milk and spices.

Second largest producer of rice,wheat,cotton,sugarcane,farmed fish,sheep,goat and tea.

Importance of Agriculture in India

• Share in national income- 14% in 2011-12.• Largest employment providing sector-57%

in 2001.• Provision of food surplus to the expanding

population.• Providing raw materials to industries• It plays a key role in international trade for

India.• Role in poverty reduction.

Constraint for Agriculture in India

• Smallholder agriculture under neo-liberalism small-holder agriculture which

predominates on large tracts of land in the developing countries is slowly regaining its importance after decades of neglect that it was subject to under neo-liberal policies.

• Lack of InfrastructureIndian agriculture industry is suffering of lack

infrastructure for long period of time and those people are doing the agriculture work they don’t have that ability to build required infrastructure.

Tin

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• MonsoonIndian agriculture industry is mostly monsoon

depended. Unless there is good monsoon is hard to get agriculture to get as smooth as possible.

• Diminishing rate of returnIt refers to the fact that how much I invest I get

less return. Due to that factor the agricultural industry is getting affected and most of the farmers are opting for another profession.

• Falling Output PricesThe real returns in agriculture were already

declining, particularly for commercially cultivated crops, under the economic reforms period. Since the liberalization of trade in agricultural commodities in the mid-nineties.

• Technological factorsApart from some part of the country Indian

farmers are not so economically well off. For that reason farmers don’t get to access new technologies.

G h igh lo a

• Lack of creditCredit for agriculture industry was not well

structured that is why many farmers were suffering from taking high debt and many bank as now it is we can see it was not there before.

Causes of low productivity • Social environment of villages is often stated as an

obstacle in agriculture development.• Extreme pressure of population on land due that

non-agricultural sectors of the economy not even expand.

• Lack of credit and marketing facilities.• One of the key reason is zamindari system due to

that land in not get the proper tenure.• Outdated agricultural techniques.• Inadequate irrigation facilities.

Green revolution

• A new agricultural strategy was put into practise for the 1st time in India in the kharif season of 1966 and was termed high yielding variety of seeds and the programme was also called high yielding variety seeds programme (hyvp) since it depended crucially on irrigation,fertilisers,heavy seeds, pesticides and insecticides. However, it was mainly restricted to wheat,rice,jowar,bajra and maize.

continued

• However green revolution mainly concentrated on wheat and an increase in productivity was mainly seen in states like Punjab, Haryana, western Uttar Pradesh

• Poor farmers could not afford the new seedsor fertilisers that was required Inadequate irrigation cover Inadequate adoption of technology

Period Food grains Non-food crops

1 1949-50 to 1964-65

2.93 3.54

2 1967-68 to 1989-90

2.74 2.72

3 1970-71 to 1979-80

2.08 1.66

4 1980-81 to 1989-90

3.54 4.84

Agricultural Growth before 1991

Post Liberalization Period

Post liberalizationEconomic liberalisation and Indian agriculture is an in depth study that throws light on the changes that happened after 1991. After 1991 a massive change happened in Economic Policy that directly affect Indian Agriculture.

Structured Credit systemAfter 1991 government of India forms many banks to give a proper credit delivery . For that reason government form many banks for giving loan to the farmers. Like•NABARD• RRB• National Institute Agriculture Extension Management.• Multi Commodity Exchange

Government’s Policies for agriculture

• Krishan credit card• e-choupel• Easy loan process system for the farmers• waiving the processing fees for the farmers• Direct buy from the farmers• Reducing the middle man as low as possible

Causes:

• Significant collation in the overall investment• Evolve new technologies• Shrinking farm size• Inadequate irrigation cover• Balanced use of inputs• Credit delivery system

Post liberalisation phase

its generally divided into two phases:

The period 1990-93 to 2003-6

The period since 2005-6

The period since 2005-06

• This period specially in the 11th 5 year plan has seen remarkably the recovery of agricultural growth. states like Andhra Pradesh,Gujarat,Maharashtra,Jharkhand,Tripura have recorded a 5%plus growth rate in agriculture. This was mainly due to the conscious hike in public and private investment

1990 to 2012

• Agricultural growth during these years are mainly the reflection of the impact of economic reforms on agricultural performance. this period is marked by sharp deceleration in the southern and north western region except Gujarat. Because there was a rapid spread of cotton during that time in Gujarat.

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