Agro Predominance Challenges to India's Overall Economic Development
Author : CA A. K. Jain
-Chapter Headings-
* Preamble
* Agro Predominance Challenge
1. Low Productivity :
2. Vulnerability to Climate Change :
3. Income Disparities :
4. Limited Technological Adoption :
* Solutions for Sustainable Development
1. Seed Banks and Seed Production :
2. Fertilizer and Pesticide Manufacturing :
3. Livestock Rearing :
4. Food Processing :
5. Policy Reforms :
6. Investment in Agricultural Infrastructure :
7. Promotion of Agri-Tech Adoption :
8. Skill Development and Education :
* Government Initiatives in Agriculture
1. Focus on Soil Health :
2. Enhancing Irrigation Efficiency :
3. Food Processing :
4. Farmers' Producer Organizations :
5. Contract Farming :
6. Promoting Sustainable Practices :
7. Investing In Research & Development :
8. Empowering Farmers with Knowledge :
* Challenges in Agro Development
1. Implementation Hurdles :
2. Infrastructure Limitations :
3. Pests, Diseases and Climate Change :
4. Land Fragmentation :
5. Post-Harvest Losses and Supply Chain Issues :
* Limited Success for Government Schemes
1. Poor Planning and Design :
2. Lack of Infrastructure :
3. Corruption and Leakage :
4. Inadequate Funding :
5. Complexity and Bureaucratic Hurdles :
6. Limited Farmer Participation and Awareness :
7. Inadequate Monitoring and Evaluation :
8. Climate Change and Environmental Factors :
9. Market Dynamics and Price Volatility :
10. Inadequate Support Services :
* Comparative Analysis of Agri Activities
1. India :
2. United States :
3. Russia :
4. Japan :
5. Brazil :
* Conclusion
Preamble
India's agricultural sector has long been the backbone of its economy, employing millions and contributing significantly to the country's GDP. However, the predominance of traditional agriculture methodology has posed challenges to India's overall economic development. Despite its historical significance, the sector's limitations hinder progress in various ways, from technological advancement to income distribution. In this text presentation, we delve into the obstacles posed by the dominance of agriculture in India's economy and explore potential solutions to propel the nation towards sustainable growth.
Agro Predominance Challenge
Agriculture has been the primary occupation for a significant portion of India's population for centuries. Even as the country modernizes and diversifies its economy, agriculture remains central, employing about 50% of the workforce. However, this heavy reliance on agriculture comes with its set of challenges.
1. Low Productivity : Traditional Indian agriculture has long been the backbone of the country's economy, providing livelihoods to a large section of the population. However, the productivity of this sector remains remarkably low compared to global standards. Several factors contribute to this low productivity, including small landholdings, dependence on monsoon, outdated farming techniques, inadequate infrastructure, and policy-related issues. Addressing these challenges is crucial for improving agricultural productivity and enhancing farmers' incomes.
a. Fragmented Landholdings : The average landholding size in India is small, making mechanization and the use of modern techniques difficult. Fragmentation occurs due to generational land inheritance, leading to unviable economic units. Small landholdings reduce the possibility of achieving economies of scale, leading to higher per-unit production costs and lower profitability. In Bihar, the average landholding size is around 0.39 hectares, one of the smallest in the country, leading to low productivity and inefficiencies. Even in agriculturally advanced states like Punjab, fragmentation limits the adoption of advanced technologies.
|
Farm Holding Size Comparison |
||
| Country | Average Farm Holding Size | Remarks |
| India | 1.08 hectares |
Characterized by small and fragmented landholdings, limiting mechanization and productivity. |
| Pakistan | 3.1 hectares | Larger than India, but still facing challenges related to small-scale farming in rural areas. |
| Thailand | 3.2 hectares | More consolidated holdings with greater adoption of mechanization and modern farming techniques. |
| Myanmar (Burma) | 2.4 hectares | Relatively small but with increasing government efforts to improve agricultural productivity. |
| Afghanistan | 1.5 hectares | Agriculture is primarily subsistence, with significant regional disparities in farm sizes. |
| Russia | 220 hectares | Significantly larger due to vast agricultural lands, enabling large-scale mechanized farming. |
| United States | 178 hectares |
Highly consolidated farms with advanced mechanization, leading to high productivity. |
b. Dependence on Monsoon : Significant portion of Indian agriculture relies on monsoon rains, leading to volatility in output due to irregular rainfall patterns. Also poor water management practices and inadequate irrigation infrastructure exacerbate the impact of droughts and floods, leading to frequent crop failures. Vidarbha Region in Maharashtra is an example of high variability in monsoon rains consequent low productivity and increased farmer distress, contributing to the high rate of farmer suicides. In eastern India despite abundant rainfall, poor irrigation infrastructure and water logging reduce crop yields.
c. Outdated Farming Techniques : Many farmers still use traditional tools and methods, leading to low productivity. Limited access to modern equipment, fertilizers, and high-yield seeds hampers output. Mechanization remains low due to small land holdings, lack of financial resources, and awareness. Manual labour is still predominant, leading to inefficiencies. Uttar Pradesh, despite being a major agricultural state, a large portion of farmers still use traditional plows and rely on manual labour. In Rajasthan, the use of modern irrigation methods like drip and sprinkler systems is minimal, leading to low water-use efficiency.
d. Soil Degradation and Low Fertility : Overuse of chemical fertilizers, mono cropping, and deforestation have led to significant soil degradation, reducing fertility and productivity.
Lack of awareness and infrastructure for soil testing and rejuvenation practices leads to continued deterioration of soil health. In Punjab and Haryana excessive use of chemical fertilizers and water-intensive crops like rice have led to decline of soil fertility and groundwater depletion. In Bundi (Rajasthan) high levels of salinity due to poor irrigation practices have reduced agricultural productivity.
|
Soil Degradation Impact |
|
| Aspect | Example |
| Soil Degradation | 29% of India’s total land area is degraded (MoEF 2020) |
| Soil Degradation Impact Fertilizer Imbalance | NPK ratio skewed at 6.7:2.4:1 (Punjab) vs. ideal 4:2:1 |
| Organic Carbon Deficiency | 70% of soils deficient in organic carbon (ICAR) |
| Productivity Loss Due to Soil Degradation | 10-30% depending on region (ICRISAT 2019) |
e. Inadequate Infrastructure and Market Access : Inadequate storage facilities and poor road connectivity lead to significant post-harvest losses, further reducing the effective productivity of the sector. Limited access to competitive markets results in farmers being dependent on local intermediaries, leading to lower prices and reduced income. In Madhya Pradesh high post-harvest losses happen due to lack of cold storage facilities for horticultural produce. In Bihar poor road connectivity increases transportation costs and reduces market access for small farmers.
The low productivity of traditional Indian agriculture is a multifaceted issue, rooted in small and fragmented landholdings, dependence on monsoons, outdated farming techniques, soil degradation, and inadequate infrastructure. Addressing these challenges requires a comprehensive approach involving modernization of agriculture, improvement in infrastructure, better market access, and effective policy interventions. By overcoming these obstacles, India can significantly enhance its agricultural productivity, leading to improved farmer incomes and overall economic growth.
2. Vulnerability to Climate Change : India's agriculture is highly dependent on monsoon rains, making it susceptible to the vagaries of climate change. Erratic rainfall patterns, droughts, floods, and other extreme weather events pose significant risks to crop yields, affecting farmers' incomes and overall food security.
3. Income Disparities : The agrarian economy perpetuates income disparities, with a large proportion of farmers living below the poverty line. The lack of alternative employment opportunities in rural areas exacerbates this issue, leading to migration to urban centres in search of livelihoods.
4. Limited Technological Adoption : While India has made strides in agricultural research and development, the adoption of modern technologies and practices remains limited, particularly among small holder farmers. This hampers efficiency, sustainability, and competitiveness in the global market.
Solutions for Sustainable Development
Indian farmers can employ backward and forward integration strategies to enhance their agricultural activities. Here are some practical solutions.
1. Seed Banks and Seed Production : Setting up seed banks or cooperatives for high-quality seeds can ensure access to suitable varieties for local conditions, thereby enhancing productivity. Farmers can also form seed producer groups to produce and distribute seeds locally.
The Government of India's National Seed Corporation (NSC) provides certified seeds to farmers, ensuring quality and reliability. Farmers can also form seed producer groups to produce and distribute seeds locally. Farmers can engage in seed production to ensure quality and availability of seeds for their crops. This reduces dependency on external sources and improves crop yield. A study by the Indian Council of Agricultural Research (ICAR) found that farmers who engaged in seed production had a 15-20% increase in crop yield compared to those relying on external seed sources. The Government of India's National Seed Corporation (NSC) provides certified seeds to farmers, ensuring quality and reliability.
2. Fertilizer and Pesticide Manufacturing : Setting up small-scale fertilizer or pesticide production units can reduce input costs and ensure the availability of quality inputs. A case study by the National Bank for Agriculture and Rural Development (NABARD) showed that farmers who produced their own organic fertilizers reduced input costs by 30% and reported healthier soil conditions. Here are some common methods and technologies used for making pesticides and fertilizers:
(a) Composting : Farmers can compost organic materials such as kitchen scraps, crop residues, and animal manure to produce nutrient-rich fertilizer. Composting not only adds nutrients to the soil but also helps improve soil structure and water retention.
(b) Bio - fertilizers : These are substances containing living micro organisms, which when applied to seeds, plant surfaces, or soil, colonize the rhizosphere or the interior of the plant and promote growth by increasing the supply or availability of primary nutrients to the host plant. They can be produced from various sources such as nitrogen-fixing bacteria, phosphate-solubilizing bacteria, and mycorrhizal fungi.
(c) Bio-pesticides : These are derived from natural materials such as plants, animals, bacteria, and certain minerals. Examples include neem oil, pyrethrum (derived from chrysanthemum flowers), and Bacillus thuringiensis (a bacterium used to control insect pests). Bio pesticides are often less harmful to non-target organisms and the environment compared to synthetic chemical pesticides.
(d) Integrated Pest Management : IPM combines multiple pest control methods, including biological, cultural, and mechanical controls, along with the judicious use of pesticides when necessary. It aims to minimize the use of synthetic chemical pesticides while effectively managing pest populations.
3. Livestock Rearing : Livestock rearing can be a real game-changer for Indian farmers, boosting their income in several ways:
(a) Regular Income : Dairy animals like cows and buffaloes provide a steady stream of income through milk sales. This is particularly beneficial as milk is a daily requirement in many households.
(b) Additional Income Streams: Livestock offers more than just milk. Farmers can sell meat, eggs, wool, and even manure (useful as fertilizer) from animals like poultry, sheep, and goats.
( c) Financial Security : Livestock acts as a living bank account. Farmers can sell animals during emergencies or unexpected expenses, providing a quick source of cash.
(d) By-Products for Crops: Animal dung can be composted into nutrient- rich fertilizer, reducing dependence on (and expense of) purchased fertilizers. Animals can also help till land through draft power.
(e) Employment Opportunities : Livestock rearing creates jobs, especially in rural areas. Families can manage livestock farms, and even landless individuals can find work as shepherds or dairy workers.
Overall, livestock rearing can be a powerful tool for Indian farmers to achieve financial security and increase their income. By strategically incorporating animals into their farms and leveraging available resources, farmers can create a more stable and profitable agricultural livelihood.
4. Food Processing : Indian agriculturists and farmers have a great opportunity to diversify into the food processing business. Here's how it can be done and the benefits it brings:
(a) Minimal Processing : This is a good starting point. Farmers can focus on activities that extend the shelf life and marketability of produce. Examples include sorting, grading, washing, waxing (for fruits), drying (for spices or pulses), and packaging.
(b) Value-added Products : Here, farmers take it a step further by creating new products from their crops or livestock. This could involve making jams, pickles, chutneys, cheese, sausages, or even dehydrated fruits and vegetables.
(c) Farmer Collectives & Cooperatives : Individual farmers might lack resources for larger processing units. By joining forces, they can set up shared processing facilities, negotiate better deals for equipment and packaging, and gain better market access.
Setting up processing units requires investment in equipment, storage, and sometimes even training. Reaching new markets and establishing a brand can be challenging. Understanding and adhering to food safety regulations and quality standards is crucial. Overall, diversification into food processing offers a promising path for Indian agriculturists and farmers to improve their income, reduce waste, and build a more sustainable agricultural future.
According to reports from the Ministry of Food Processing Industries (MoFPI) and other sources, millions of farmers across India have been involved in various aspects of food processing, including setting up small-scale processing units for fruits, vegetables, grains, and dairy products. However, the exact number can vary over time due to the dynamic nature of agricultural and industrial activities.
5. Policy Reforms : Implementing policy reforms to liberalize agricultural markets, improve land tenure systems, and provide better access to credit and insurance can enhance the resilience and competitiveness of the agricultural sector.
6. Investment in Agricultural Infrastructure : Despite agriculture being a primary livelihood for a significant portion of the population, investment in the sector remains relatively low. For instance, in India, public sector investment in agriculture as a percentage of GDP has hovered around 2% for several years, which is lower than many other countries. This lack of investment hampers the adoption of modern technologies, infrastructure development, and research and development initiatives aimed at improving productivity.
Enhancing rural infrastructure, including irrigation, storage facilities, and transportation networks, can improve market access, reduce post-harvest losses, and enhance agricultural productivity. India faces significant challenges related to water scarcity and inefficient irrigation practices. According to the Composite Water Management Index (CWMI) report by NITI Aayog, 21 major cities in India are expected to run out of groundwater by 2020. Inadequate irrigation infrastructure and overexploitation of groundwater lead to water stress, impacting agricultural productivity, particularly in regions dependent on monsoon rains.
7. Promotion of Agri-Tech Adoption : Encouraging the adoption of modern technologies such as precision farming, drip irrigation, and mechanization can boost productivity, reduce input costs, and mitigate the impact of climate change. The mechanization level in Indian agriculture remains low compared to many other countries. According to the Economic Survey 2019-20, the farm power availability per hectare of gross cropped area in India stood at about 2.02 kW, significantly lower than countries like China and Brazil. Limited mechanization and modernization hinder efficiency gains and limit the scalability of agricultural operations.
8. Skill Development and Education : Investing in agricultural education and extension services can empower farmers with the knowledge and skills needed to adopt sustainable farming practices and leverage market opportunities effectively.
Government Initiatives in Agriculture
The Indian government recognizes the importance of modernizing agriculture to achieve food security, boost economic growth, and improve farmer livelihoods. Here's a breakdown of their initiatives.
1. Focus on Soil Health : The Soil Health Card (SHC) scheme was launched by the Government of India in February 2015 with the objective of promoting sustainable farming practices and improving the productivity of agricultural land. The scheme provides farmers with a detailed analysis of their soil’s nutrient status, which helps in making informed decisions regarding fertilizer usage and crop selection. The SHC contains information on the soil health parameters, including pH, organic carbon, nitrogen, phosphorus, potassium, and micronutrients, among others.
The SHC aims to educate farmers on the appropriate use of chemical fertilizers, organic manures, and bio-fertilizers based on soil test results. By improving soil health, the scheme aims to enhance the productivity and profitability of farms. The scheme encourages sustainable agricultural practices to maintain soil fertility and prevent degradation.
The SHC has helped farmers optimize the use of fertilizers, leading to a reduction in input costs and better crop yields. The scheme has increased awareness about the importance of soil health and the need for regular soil testing. By promoting the judicious use of fertilizers, the SHC scheme has also contributed to the adoption of sustainable agricultural practices. The table below provides information on the number of Soil Health Cards issued in different states of India as of 2023.
| Soil Health Card Distribution Across States | ||
| State/UT | Cards Issued (Million) | % Farmers Covered |
| Uttar Pradesh | 19.5 | 85% |
| Maharashtra | 14.7 | 78% |
| Madhya Pradesh | 12.8 | 80% |
| Rajasthan | 11.2 | 88% |
| Bihar | 9.3 | 73% |
| Tamil Nadu | 8.1 | 82% |
| West Bengal | 7.9 | 76% |
| Gujarat | 7.6 | 81% |
| Karnataka | 6.9 | 77% |
| Haryana | 5.1 | 84% |
| Punjab | 4.7 | 79% |
| Andhra Pradesh | 4.4 | 80% |
| Telangana | 3.9 | 74% |
| Kerala | 2.1 | 69% |
| Others | 11.6 | - |
| Total | 129.8 | - |
The SHC scheme is facing challenges due to several reasons. All farmers have not been covered by SHC scheme, especially in remote and tribal areas. Soil testing is not conducted regularly, with many farmers receiving the SHC only once every three years, which limits its effectiveness. Many farmers are not fully aware of how to interpret the SHC and apply the recommendations effectively. The limited number of soil testing labs and their uneven distribution across states affect the timely issuance of SHCs. There is a lack of proper monitoring and follow-up to ensure that farmers are adopting the recommendations provided in the SHC.
To address the challenges faced by SHC scheme the government has also taken several measures.viz. The government has increased the number of soil testing laboratories and promoted the use of mobile soil testing labs to reach remote areas. Training programs and workshops have been conducted to educate farmers on interpreting SHCs and implementing their recommendations. The introduction of digital SHCs allows for better data management and easier access for farmers through mobile apps. The government has initiated awareness campaigns to educate farmers on the importance of soil health and the benefits of using SHCs. The government has strengthened monitoring mechanisms to ensure effective implementation and follow-up on SHC recommendations.
The Soil Health Card scheme has made a significant impact on farming in India by promoting the balanced use of fertilizers and sustainable agricultural practices. However, challenges remain in terms of coverage, infrastructure, and farmer engagement. The government’s ongoing efforts to improve soil testing infrastructure, capacity building, and digital initiatives are crucial for the success of the scheme and the long-term health of India’s agricultural land.
2. Enhancing Irrigation Efficiency : The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) aims to expand irrigation coverage and improve water use efficiency in agriculture, thereby enhancing productivity and water sustainability. Under “Mission on Micro Irrigation launched in 2015, water-saving irrigation methods like drip and sprinkler systems are promoted . As of March 2023, over 120 million hectares have been covered under micro irrigation projects (source: https://pmksy.gov.in/microirrigation/index.aspx ). This mission helps conserve water, a critical resource in India.
The Government of India has promoted several irrigation schemes aimed at enhancing water availability for farmers, ensuring sustainable agriculture, and addressing water scarcity. The major irrigation schemes include the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), Accelerated Irrigation Benefits Programme (AIBP), Command Area Development & Water Management (CADWM), and others. Below is a detailed overview of these initiatives, their impact, state-wise implementation, challenges, and government actions.
| Major Irrigation Schemes Promoted by the Government of India | |||||
| Scheme | Description | Impact on Farming | State-wise Implementation | Challenges | Government Actions |
| Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) | Launched in 2015, PMKSY aims to extend irrigation coverage. | Significant increase in irrigation coverage, better crop yields, and reduced dependency on monsoon. | Implemented across all states, with a focus on drought-prone regions. | Delays in project execution, limited local water resources, and regional disparities. | Accelerated project approvals, focus on micro-irrigation, and increased budget allocation. |
| Accelerated Irrigation Benefits Programme (AIBP) | Started in 1996 to expedite the completion of long-pending irrigation projects. | Enhanced irrigation potential in states, leading to increased agricultural output. | Focus on states with major irrigation potential like Andhra Pradesh, Madhya Pradesh. | Project delays, cost overruns, and land acquisition issues. | Improved monitoring, fast-tracking pending projects, and better coordination with states. |
| Command Area Development & Water Management (CADWM) | Focuses on improving the utilization of irrigation potential created under AIBP . | Increased water-use efficiency, improved crop patterns, and better water distribution. | Implemented in states with large command areas like Punjab, Haryana, and Tamil Nadu. | Poor maintenance of irrigation infrastructure, waterlogging, and salinity. | Emphasis on participatory irrigation management and capacity building of Water User Associations (WUAs). |
| National Mission on Micro Irrigation (NMMI) | Promotes micro-irrigation systems like drip and sprinkler irrigation. | Higher crop productivity, reduced water usage, and increased farmer income. | Widely implemented in water-scarce states like Gujarat, Maharashtra, and Rajasthan. | High initial costs for farmers, lack of awareness, and maintenance issues. | Subsidies for micro-irrigation systems, training programs, and awareness campaigns. |
The various irrigation schemes have significantly increased the area under assured irrigation, reducing the dependency on monsoons and stabilizing agricultural output. However several deficiencies are pointed out in irrigation management. Many irrigation projects face delays due to bureaucratic hurdles, land acquisition issues, and lack of coordination between state and central governments. There is uneven implementation across states, with some regions still lacking adequate irrigation coverage. Despite increased irrigation potential, water availability remains a challenge in drought-prone and water-scarce regions. Poor maintenance of irrigation infrastructure leads to inefficiencies, water logging, and salinity problems.
The Government of India's efforts to enhance irrigation facilities have had a significant positive impact on farming and farmers. However, the effectiveness of these schemes is often hampered by challenges such as project delays, regional disparities, and maintenance issues. Continued focus on addressing these challenges through policy interventions, financial support, and improved implementation strategies will be crucial for achieving sustainable agricultural growth in India.
3. Food Processing : The Ministry of Food Processing Industries' Mega Food Parks Scheme provides infrastructure facilities for food processing units, cold storage, and logistics, enabling farmers to access processing facilities and markets. A report by the Ministry of Food Processing Industries stated that value addition through food processing can increase farmers' income by 20-30%. Below is a detailed review of these initiatives with examples and statistics in a tabulated format.
| Initiatives for Improvement in Food Processing Industry (1) | |||
| Initiative | Description | Examples/Statistics | Impact on Farmers |
| Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) | A comprehensive package aimed at creating modern infrastructure and reducing food wastage. | - 134 projects approved under the Integrated Cold Chain Scheme (as of 2023). | - Reduction in post-harvest losses. |
| - Creation of Mega Food Parks, Agro-Processing Clusters, etc. | - Improved income through value addition. | ||
| Mega Food Parks Scheme | Establishes clusters of food processing units with common facilities like cold storage, processing units, and packaging centers to improve efficiency and reduce costs. | - 22 Mega Food Parks operational across India. | - Direct link between farmers and processors. |
| - Each park serves 250-300 farmers or small-scale units. | - Better prices for produce. | ||
| - Employment opportunities in rural areas. | |||
| Operation Greens | Focuses on reducing price volatility of TOP (Tomato, Onion, Potato) crops through the development of infrastructure and value chain. | - Rs. 500 crore allocated for promoting Farmer Producer Organizations (FPOs), agri-logistics, processing facilities, etc. | - Stabilization of prices for TOP crops. |
| - Increased income security. | |||
| - Promotion of FPOs leading to collective bargaining power. | |||
| Cold Chain Infrastructure | Promotes the development of integrated cold chains and preservation infrastructure to minimize post-harvest losses. | - 357 cold chain projects approved under PMKSY (as of 2023). | - Reduction in spoilage and waste. |
| - Rs. 12,000 crore allocated for cold chain projects. | - Enhanced shelf life of perishable produce. | ||
| - Increased market access for farmers. | |||
| Agri-Export Policy 2018 | Aims to double agricultural exports by 2022, promoting value-added food products, and diversifying export destinations. | - $50 billion worth of agricultural exports targeted. | - Access to global markets. |
| - Promotion of organic products, processed foods, and horticulture exports. | - Encouragement of organic and value-added farming. | ||
| - Enhanced profitability through exports. | |||
|
Initiatives for Improvement in Food Processing Industry (2) |
|||
| Scheme for Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC) | Focuses on creating and expanding food processing units and preservation capacity to support the food processing industry. | - Rs. 2,000 crore allocated for setting up new units and expanding existing ones. | - Boost to local employment. |
| - 415 projects sanctioned under CEFPPC. | - Increased demand for farm produce. | ||
| - Better prices due to processing and preservation capacity. | |||
| Food Safety and Standards Authority of India (FSSAI) Initiatives | Ensures the safety and quality of food products through regulations and standards, benefiting both consumers and producers. | - Implementation of hygiene standards in food processing units. | - Ensured quality standards lead to higher market confidence. |
| - Simplification of compliance for small-scale units. | - Increased marketability of farm produce. | ||
| - Promotion of safe food processing practices. | |||
| National Mission on Food Processing (NMFP) | Decentralized implementation of food processing policies, focusing on the development of the sector at the state level. | - Rs.10,000 crore allocated for state-level initiatives. | - State-specific solutions for food processing. |
| - Promotion of food processing clusters in various states. | - Greater focus on local crop processing. | ||
| - Employment generation at the local level. | |||
| Kisan Rail and Krishi Udan Schemes | Initiatives to improve transportation logistics for perishable commodities by linking production areas with major markets. | Over 1,000 Kisan Rail services run till 2023. | - Faster transportation reduces spoilage. |
| - 20 airports identified under Krishi Udan for boosting exports. | - Better access to distant markets. | ||
| - Enhanced income due to reduced transportation time and costs. | |||
| Micro Food Processing Enterprises Scheme | Supports unorganized micro food processing enterprises in adopting technical upgrades, branding, and marketing. | - Rs. 10,000 crore budget for 2020-2025. | - Empowerment of rural micro-entrepreneurs. |
| - Focus on supporting 200,000 enterprises. | - Technical and financial support for small-scale units. | ||
| - Enhanced product quality and market access. | |||
Food Processing Sector grew at a CAGR of 10.5% during 2015-2020.The food processing industry employs about 1.93 million people (as of 2022).The sector contributed 9-10% to India’s GDP from agriculture and allied sectors (2023).FDI inflows in the food processing sector stood at $10 billion between 2014-2022.
These initiatives by the Government of India aim to enhance the food processing sector, thus improving the overall value chain, reducing wastage, and ultimately benefiting farmers by providing them with better income opportunities, access to infrastructure, and stable market prices.
4. Farmers' Producer Organizations : Farmers' Producer Organizations (FPOs) are collectives of farmers that aim to improve the economic strength and bargaining power of small and marginal farmers by pooling resources, knowledge, and market access. The Government of India has been promoting FPOs as a key strategy to transform the agricultural sector, enhance farmers' income, and achieve the goal of doubling farmers' income by 2022.
The prime Objectives of FPO include facilitating direct access to markets, bypassing intermediaries, strengthening collective bargaining for inputs like seeds, fertilizers, and technology, spreading risks across the collective, reducing individual farmer vulnerability, promoting agro-processing and value addition to agricultural produce and improving access to credit and financial services.
The Government of India has launched several initiatives to promote and support FPOs :
a. Equity Grant and Credit Guarantee Fund Scheme: Provides equity support to FPOs to enhance their equity base and helps them access loans from financial institutions.
b. Central Sector Scheme for Promotion and Formation of 10,000 FPOs: Launched in 2020, this scheme aims to form and promote 10,000 FPOs by 2024-25.
c. Support through NABARD and SFAC: The National Bank for Agriculture and Rural Development (NABARD) and Small Farmers' Agribusiness Consortium (SFAC) have been key institutions in supporting FPO formation and capacity building.
| FPO Impact on Farming and Farmers |
|
| Parameter | Impact |
| Market Access | FPOs have enabled farmers to access larger markets, both domestic and export. |
| Income Enhancement | Collective bargaining has led to better prices for inputs and outputs, increasing farmer incomes. |
| Technology Adoption | FPOs have facilitated the dissemination of modern farming techniques and technology. |
| Risk Management | Farmers are better able to manage risks through collective resources and knowledge. |
| Financial Inclusion | FPOs have improved access to credit and insurance for small and marginal farmers. |
| Deficiencies and Challenges | |
| Issue | Details |
| Lack of Awareness | Many farmers are still unaware of the benefits and functioning of FPOs. |
| Inadequate Infrastructure | Lack of storage, processing, and transportation facilities limits FPO effectiveness. |
| Financial Constraints | Access to credit and working capital is a major challenge for newly formed FPOs. |
| Regulatory Hurdles | Complex regulatory requirements and lack of clarity on FPO registration and governance. |
| Leadership and Management | Lack of skilled leadership and management within FPOs, leading to inefficiencies. |
| Farmer Participation | Engaging small and marginal farmers who are skeptical about collective initiatives. |
| Market Linkages | Ensuring consistent and profitable market linkages for FPOs' produce. |
| Capacity Building | Providing continuous training and capacity building to FPO members and leaders. |
| Sustainability | Ensuring the long-term sustainability of FPOs without continuous external support. |
| Scalability | Scaling up successful FPOs while maintaining their effectiveness and member focus. |
FPOs have the potential to revolutionize the agricultural sector in India by empowering small and marginal farmers, enhancing their income, and ensuring sustainable farming practices. While significant progress has been made, challenges remain, particularly in terms of awareness, infrastructure, and financial access. The government's continued focus on strengthening FPOs through targeted interventions and policy support will be crucial for their success and the broader goal of agricultural transformation in India.
5. Contract Farming : Contract farming involves an agreement between farmers and buyers (such as agribusiness companies, exporters, or processors), where the farmer agrees to produce a specific crop or livestock under agreed conditions, and the buyer commits to purchasing the produce at a predetermined price. The Government of India has promoted contract farming as a means to enhance agricultural productivity, ensure market linkages, and stabilize farmers' income.
Various states in India have introduced policies to facilitate contract farming, providing legal frameworks and dispute resolution mechanisms to protect farmers' interests. A survey conducted by the Indian Agricultural Research Institute (IARI) revealed that integrated farming systems increased farm income by 25-30% due to diversified revenue streams.
| Impact of Contract Farming on Farmers | |
| Aspect | Details |
| Income Stability | Farmers benefit from assured prices for their produce, reducing the risk of market price fluctuations. This ensures a stable income, allowing for better financial planning. |
| Access to Technology | Contract farming often comes with access to advanced farming techniques, inputs, and technology provided by the contracting company, leading to better yields. |
| Market Linkages | Farmers gain direct access to markets, bypassing intermediaries, which can lead to better profit margins and reduced exploitation by middlemen. |
| Quality Standards | Farmers are encouraged to maintain high quality as per the contract, which can enhance their skills and product quality over time. |
| Risk Mitigation | Contracts often include provisions for risk-sharing, such as crop failure due to natural calamities, which can provide a safety net for farmers. |
| Financial Support | Some contracts include provisions for advance payments or credit facilities, easing the financial burden on farmers for purchasing inputs. |
| Skill Development | Farmers receive training on modern agricultural practices, enhancing their knowledge and skill set. |
| Drawbacks and Deficiencies in Contract Farming | |
| Drawback/Deficiency | Details |
| Unfair Contracts | In some cases, contracts are biased in favor of the buyer, with complex terms that are difficult for farmers to understand, leading to exploitation. |
| Quality and Quantity Disputes | Disagreements often arise regarding the quality and quantity of produce, leading to disputes between farmers and buyers. |
| Dependence on Buyers | Farmers become dependent on a single buyer, which can lead to vulnerabilities if the buyer defaults or offers unfavorable terms in future contracts. |
| Delayed Payments | There are instances where payments are delayed by the buyers, leading to financial stress for farmers. |
| Lack of Legal Recourse | Small farmers often lack the resources to pursue legal action in case of disputes, making them vulnerable to unfair practices. |
| Limited Bargaining Power | Farmers, especially smallholders, have limited bargaining power to negotiate favorable contract terms, leading to inequitable agreements. |
| Overemphasis on Cash Crops | Contract farming often encourages the cultivation of cash crops over food crops, which can affect food security and soil health in the long run. |
|
Government Actions to Improve Contract Farming |
|
| Action | Details |
| Model Contract Farming Act, 2018 | The government introduced the Model Contract Farming Act to provide a framework for fair and transparent contracts, ensuring the protection of farmers' interests. |
| Farmer Producer Organizations (FPOs) | The promotion of FPOs helps small farmers pool their resources and bargaining power, enabling better contract terms and collective marketing. |
| Awareness Campaigns | Government initiatives to educate farmers about the benefits, risks, and rights under contract farming through workshops, training, and outreach programs. |
| Legal Support | Setting up legal aid cells in rural areas to assist farmers in understanding and negotiating contracts, as well as in resolving disputes. |
| Infrastructure Development | Investments in rural infrastructure, including roads, cold storage, and market facilities, to support the effective implementation of contract farming. |
| Risk Management Tools | Introduction of crop insurance schemes and risk-sharing mechanisms to protect farmers from unforeseen risks and losses under contract farming arrangements. |
| Regulatory Reforms | Streamlining and harmonizing regulations across states to provide a clear and consistent legal framework for contract farming. |
Contract farming in India presents significant opportunities for improving agricultural productivity, enhancing market access, and ensuring stable incomes for farmers. However, challenges such as unfair contracts, market volatility, and infrastructure deficits need to be addressed to realize its full potential. The government has taken steps to improve contract farming through legislative reforms, farmer education, and infrastructure development, but continuous efforts are required to safeguard farmers' interests and promote sustainable agricultural practices.
6. Promoting Sustainable Practices : Paramparagat Krishi Vikas Yojana (PKVY) is a sub-component of the Soil Health Management (SHM) scheme under the National Mission of Sustainable Agriculture (NMSA). Launched in 2015 by the Government of India, PKVY aims to promote organic farming across the country. The scheme encourages farmers to adopt traditional and organic farming practices, which are environment-friendly and help in the preservation of soil health. Under “Paramparagat Krishi Vikas Yojana” as of March 2022, over 1.7 million hectares have been brought under organic certification. PKVY aims to improve soil health, product quality, and farmer income through organic practices.
| Impact of PKVY on Farmers | |
| Aspect | Details |
| Adoption of Organic Farming | PKVY has led to a significant increase in the adoption of organic farming practices across India. Farmers are now more aware of the benefits of organic farming. |
| Soil Health Improvement | The use of organic inputs has improved soil health, leading to better crop yields and sustainability of farming practices. |
| Farmer Income | Organic farming under PKVY has contributed to reducing input costs, thereby increasing the net income of farmers. |
| Market Access | The scheme has facilitated better market access for organic produce, enhancing its market value and demand. |
| Environmental Benefits | Reduced use of chemical fertilizers and pesticides has contributed to environmental sustainability and reduced pollution. |
| Drawbacks and Deficiencies in PKVY | |
| Drawback/Deficiency | Details |
| Limited Awareness | Despite efforts, many farmers remain unaware of the benefits and procedures of organic farming under PKVY. |
| Inadequate Infrastructure | Lack of proper infrastructure for the production, storage, and marketing of organic products has been a significant challenge. |
| Certification Issues | The process of organic certification is complex and time-consuming, leading to delays and reduced enthusiasm among farmers. |
| Market Linkages | Inadequate market linkages for organic products result in lower prices and difficulties in selling produce, reducing the overall profitability of organic farming. |
| Financial Constraints | Farmers often face financial constraints in adopting organic farming due to the initial investment required for organic inputs and practices. |
| Government Actions to Improve PKVY | |
| Action Taken | Details |
| Awareness Campaigns | The government has initiated awareness campaigns to educate farmers about the benefits of organic farming and the PKVY scheme. |
| Infrastructure Development | Efforts are being made to improve infrastructure for organic farming, including storage facilities and market access. |
| Simplification of Certification | The organic certification process is being simplified to make it more accessible to farmers, with the introduction of Participatory Guarantee System (PGS) certification. |
| Market Development |
The government is working to develop strong market linkages for organic produce, including support for e-commerce platforms and organic retail outlets. |
| Financial Assistance | Financial assistance and subsidies are being provided to farmers for the adoption of organic farming practices under PKVY. |
Paramparagat Krishi Vikas Yojana (PKVY) has made significant strides in promoting organic farming in India. While the scheme has positively impacted farming practices and farmer income, challenges such as limited awareness, inadequate infrastructure, and market access continue to hinder its full potential. The government’s ongoing efforts to address these issues, including infrastructure development, certification simplification, and market promotion, are crucial for the long-term success of PKVY.
This structured approach will help to maximize the benefits of the scheme, ensuring that organic farming becomes a sustainable and profitable practice for farmers across India.
7. Investing In Research & Development : The Government of India has undertaken numerous initiatives to promote Research & Development (R&D) in the field of agriculture, aiming to improve farming techniques, increase productivity, and enhance the overall well-being of farmers. These efforts have been crucial in addressing the challenges of food security, sustainability, and economic viability in the agricultural sector.
Indian Council of Agricultural Research (ICAR) has a budget of Rs.8,776 crore for 2023-24. They fund research on new technologies like drought-resistant crop varieties, precision agriculture techniques, and improved farm machinery. This research helps develop solutions for challenges faced by Indian agriculture. The key initiatives are in agricultural R&D are as follows.
a. Indian Council of Agricultural Research (ICAR) : ICAR is the apex body for coordinating, guiding, and managing research and education in agriculture. It operates through a vast network of research institutions, agricultural universities, and centres across the country. ICAR's initiatives have led to the development of high-yielding crop varieties, improved agricultural practices, and advancements in animal husbandry, fisheries, and horticulture.
b. Krishi Vigyan Kendras (KVKs) : KVKs are district-level institutions that provide farmers with technical advice, training, and demonstrations of new technologies. KVKs have played a significant role in disseminating research findings to the grassroots level, helping farmers adopt modern agricultural practices.
c. National Agricultural Research System (NARS) : NARS integrates various research institutions, state agricultural universities, and private sector entities to collaborate on agricultural research. NARS has facilitated the development of region-specific technologies and solutions, catering to the diverse agro-climatic conditions of India.
d. National Innovations on Climate Resilient Agriculture (NICRA) : NICRA focuses on developing climate-resilient agricultural technologies and practices. The program has helped farmers adapt to climate change by promoting resilient crop varieties, water management practices, and risk mitigation strategies.
e. Biotechnology in Agriculture : The government has promoted the use of biotechnology to enhance crop productivity, improve resistance to pests and diseases, and ensure food security. The adoption of genetically modified (GM) crops like Bt cotton has significantly increased yields and reduced pesticide use in certain regions.
| Deficiencies in R & D Promotion | |
| Aspect | Details |
| Limited Reach | Many R & D initiatives, especially advanced technologies, have limited reach, particularly in remote and marginal farming areas. |
| Inadequate Funding | Insufficient funding for agricultural research has hindered the pace of innovation and the development of new technologies. |
| Technology Adoption Lag | Farmers are often slow to adopt new technologies due to lack of awareness, training, or resources, resulting in a gap between research and practice. |
| Focus on Major Crops | R & D has primarily focused on major crops like wheat and rice, neglecting the potential of minor crops and diversified farming systems. |
| Climate Vulnerability | Despite efforts, R & D has not fully addressed the challenges posed by climate change, particularly in vulnerable regions. |
| Government Actions to Improve R & D | |
| Action | Details |
| Increased Funding | The government has increased funding for agricultural R & D, with a focus on enhancing infrastructure, resources, and capacity-building. |
| Public-Private Partnerships (PPPs) | PPPs have been encouraged to bring in private sector expertise, resources, and innovation to complement public sector research efforts. |
| Capacity Building | Training programs and scholarships for agricultural scientists and researchers have been expanded to build a skilled workforce in the sector. |
| Digital Platforms | The use of digital platforms for knowledge dissemination, real-time data collection, and farmer feedback has been promoted to bridge the adoption gap. |
| Focus on Diversification | New research initiatives have been launched to explore the potential of neglected crops, horticulture, and allied sectors like animal husbandry. |
| Climate Resilience Research |
Enhanced focus on developing climate-resilient crops and practices to mitigate the impact of climate change on agriculture. |
Research and Development in agriculture, as promoted by the Government of India, has significantly contributed to the modernization of farming practices, increased productivity, and improved farmer livelihoods. However, challenges such as limited reach, inadequate funding, and slow technology adoption persist. The government's recent actions, including increased funding, public-private partnerships, and a focus on diversification, aim to address these challenges and ensure that R & D in agriculture continues to benefit Indian farmers and the broader agricultural sector.
8. Empowering Farmers with Knowledge : Under “Krishi Vigyan Kendras” scheme over 660 KVKs are established across India as of March 2023. These centres provide training programs on modern agricultural practices, including efficient resource management, pest control, and post-harvest techniques. This empowers farmers to adopt innovative methods and improve productivity.
Government efforts include providing financial assistance, subsidies, technical support, and policy interventions to promote backward and forward integration in agriculture. Initiatives such as the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission) emphasize enhancing farm infrastructure, promoting value addition, and strengthening agricultural supply chains to improve productivity and farmers' income. Additionally, research and extension services play a crucial role in disseminating best practices and technologies for sustainable agriculture and productivity enhancement.
Challenges in Agro Development
1. Implementation Hurdles : Bureaucracy and corruption can impede the smooth rollout of government schemes, hindering their reach to all beneficiaries. A 2022 report by Transparency International India identified agriculture as one of the most vulnerable sectors.. Streamlining processes and enhancing transparency are crucial.
2. Infrastructure Limitations : Unequal access to reliable electricity (only around 89% rural coverage in 2021, source: https://powermin.gov.in ) can limit the use of technologies like electric irrigation pumps. Additionally, proper storage facilities are often lacking, leading to post-harvest losses. Investments in rural infrastructure are essential.
3. Pests, Diseases, and Climate Change : Pests, diseases, and climate change-induced factors pose significant challenges to agricultural productivity in India. For example, the Fall Armyworm (Spodoptera frugiperda) infestation has caused substantial damage to maize crops in various states. Moreover, changing weather patterns, including erratic rainfall and extreme weather events, affect crop yields and lead to production uncertainties.
4. Land Fragmentation : According to National Sample Survey Organisation data, the average size of landholding in India has shrunk to around 1.15 hectares (2.8 acres) in 2021. This fragmentation makes it difficult to adopt modern farming techniques and achieve economies of scale. This makes it challenging for some farmers, particularly smallholders, to invest in large-scale machinery or infrastructure upgrades. Land consolidation initiatives or promoting technologies suitable for smaller farms could address this issue.
5. Post-Harvest Losses and Supply Chain Issues : Post-harvest losses due to inadequate storage, transportation, and market infrastructure contribute to reduced productivity and farmer incomes. According to estimates by the Ministry of Food Processing Industries, post-harvest losses in India amount to about 30-40% of total production annually.
Addressing these challenges requires comprehensive policy interventions focusing on investment in agriculture, land reforms, water management, access to credit and insurance, technology adoption, and climate resilience measures. By addressing these issues, India can work towards revitalizing its agricultural sector and enhancing productivity to meet the growing food demands of its population.
Limited Success for Government Schemes
Government schemes in agriculture often fail due to a variety of reasons, ranging from inadequate planning and implementation to systemic issues within the agricultural sector. Here are some common factors contributing to the failure of government schemes in agriculture.
1. Poor Planning and Design : Many government schemes suffer from poor planning and design, leading to ineffective implementation and suboptimal outcomes. For example, schemes may not adequately consider the diverse needs and challenges faced by farmers in different regions. According to India Today, government schemes promoting organic farming require a minimum of 50 acres and 50 farmers per cluster. Many small farmers are unable to benefit from land consolidation or infrastructure projects due to land ownership limitations. Due to local factor ignorance , schemes might not consider the specific needs of different regions. A one-size-fits-all approach to seed distribution or irrigation projects might not be effective everywhere.
2. Lack of Infrastructure : Insufficient infrastructure, such as irrigation facilities, storage facilities, and transportation networks, can hinder the success of agricultural schemes. Without proper infrastructure, farmers may struggle to access markets or preserve their produce, leading to waste and reduced incomes. The Food Corporation of India (FCI), tasked with procurement under MSP, often struggles with storage capacity and timely payments to farmers.
According to Department of Agriculture & Cooperation, Government of India Statistic: As of 2021, only around 44.8% of India's net sown area has access to assured irrigation facilities. This dependence on rain makes agriculture vulnerable to droughts and limits productivity potential.
3. Corruption and Leakage : Corruption within the implementation process can divert resources away from intended beneficiaries and undermine the effectiveness of agricultural schemes. Leakage of funds and resources through corrupt practices reduces the impact of the schemes on farmers' livelihoods. For instance, funds allocated for agricultural inputs may be siphoned off by intermediaries.
4. Inadequate Funding : Many agricultural schemes suffer from inadequate funding, limiting their reach and impact. Insufficient budgetary allocations may result in a lack of resources for critical components such as subsidies, extension services, and infrastructure development. According to World Bank Statistics, between 1961 and 2019, the average annual growth rate of cereal yield in India was 2.2%. This is slower than the world average of 2.4% during the same period. The reasons assigned for slower growth is Land Fragmentation and Underinvestment.
Smallholder farmers, who constitute the majority of agricultural producers in India, often face challenges in accessing credit and insurance services. According to the National Bank for Agriculture and Rural Development (NABARD), only about 44% of agricultural households have access to formal credit. Limited access to credit constrains farmers' ability to invest in inputs like seeds, fertilizers, and machinery, which are essential for increasing productivity.
5. Complexity and Bureaucratic Hurdles : Complex bureaucratic procedures and administrative hurdles can impede the timely and effective implementation of agricultural schemes. Farmers may face difficulties in accessing benefits due to cumbersome paperwork or unclear eligibility criteria.
6. Limited Farmer Participation and Awareness : Lack of farmer participation and awareness about government schemes can hinder their success. Farmers may not be aware of the benefits or may face barriers to participation, such as language barriers or limited access to information channels.
7. Inadequate Monitoring and Evaluation : Weak monitoring and evaluation mechanisms can make it difficult to assess the impact of agricultural schemes accurately. Without proper feedback mechanisms, policymakers may not be able to identify and address implementation challenges or adjust strategies as needed.
The Agricultural Produce Market Committee (APMC) Act, meant to regulate markets, has been poorly implemented, leading to monopolies by middlemen who exploit farmers. Only two states (Punjab and Uttar Pradesh) have adopted the APMC Liberalization Act (2017) which aimed to give farmers more freedom to sell their produce.
8. Climate Change and Environmental Factors : Increasingly unpredictable weather patterns and environmental degradation pose significant challenges to agricultural productivity. Government schemes may fail to adequately address these challenges, leading to reduced yields and incomes for farmers.
9. Market Dynamics and Price Volatility : Fluctuations in market prices and volatility can undermine the economic viability of agriculture, making it difficult for farmers to benefit from government schemes aimed at improving their livelihoods. A 2019 report by Down To Earth noted that, between 2002-2019, only 27-31% of production from government schemes likes MSP (Minimum Support Price) reached procurement centres.
10. Inadequate Support Services : Lack of access to support services such as credit, extension services, and agricultural inputs can limit the effectiveness of government schemes. Without adequate support, farmers may struggle to adopt new technologies or practices promoted by the schemes.
These factors, among others, contribute to the failure of government schemes in agriculture, leading to continued challenges in improving the livelihoods of farmers and ensuring food security. Addressing these issues requires concerted efforts to improve planning, implementation, monitoring, and evaluation processes, as well as addressing underlying systemic challenges within the agricultural sector.
It's important to note that the Indian government is making efforts to address these issues through various initiatives. However, achieving sustained agricultural productivity growth remains a significant challenge.
Comparative Analysis of Agri Activities
India: Despite accounting for 42.6% of the labour force, agriculture contributes only 17% to GDP. India faces challenges like small farm sizes and low mechanization, which results in relatively low productivity compared to developed nations.
United States: The U.S. has a highly mechanized agriculture system, with only 1.4% of the labor force involved in agriculture. The average farm size is large, leading to high productivity and significant agricultural exports.
Russia: Russia has vast agricultural land, but harsh climates and an aging population limit productivity. The country is one of the top producers of wheat, but it struggles with rural depopulation and outdated infrastructure.
Japan: Japan has limited arable land, and the average farm size is small. However, high levels of mechanization and government support ensure high productivity. The country is a leader in rice production but faces challenges related to an aging farmer population.
Brazil: Brazil is a major global agricultural producer, particularly in soybeans, coffee, and sugarcane. The country benefits from extensive mechanization and large farm sizes, but faces environmental challenges like deforestation and inequality in land distribution.
This table provides an overview of the key differences in agricultural activities and practices across various countries, highlighting the unique challenges and advantages each country faces.
| Agricultural Activities India and Selected Countries (1) | ||||||
| Aspect | India | U.S.A | Russia | Ukraine | Thailand | Vietnam |
| Agricultural Land Use | 60.4% of total land area | 44.5% of total land area | 13% of total land area | 71.3% of total land area | 41.6% of total land area | 39.3% of total land area |
| Average Farm Size | 1.08 hectares | 179 hectares | 150 hectares | 80 hectares | 3.2 hectares | 0.5 hectares |
| Major Crops | Rice, Wheat, Sugarcane, Cotton, Pulses | Corn, Soybeans, Wheat, Cotton, Fruits | Wheat, Barley, Sunflower, Potatoes | Wheat, Corn, Sunflower | Rice, Rubber, Sugarcane, Fruits, Vegetables | Rice, Coffee, Pepper, Tea, Rubber |
| Mechanization Level | Low, largely labor-intensive | High, widespread use of machinery | Medium, with significant machinery usage | Medium, growing mechanization | Low, but increasing | Low, mostly manual labor |
| Irrigation Coverage | 49.8 million hectares (34.5% of cultivated area) | 27.7 million hectares (17.4% of cultivated area) | 4.4 million hectares (6.8% of cultivated area) | 2.3 million hectares (8% of cultivated area) | 5.5 million hectares (30% of cultivated area) | 2.5 million hectares (38% of cultivated area) |
| Crop Yield (Rice) | 2.7 tons/hectare | 8.1 tons/hectare | 5.4 tons/hectare | 4.3 tons/hectare | 3.2 tons / hectare | 5.6 tons / hectare |
| Crop Yield (Wheat) | 3.4 tons/hectare | 3.1 tons/hectare | 2.7 tons/hectare | 4.2 tons/hectare | 2.6 tons / hectare | 4.9 tons / hectare |
| Labor Force in Agriculture | 42.6% of total labor force | 1.4% of total labor force | 6.5% of total labor force | 14% of total labor force | 30.6% of total labor force | 37.9% of total labor force |
| Use of Fertilizers (kg/hectare) | 165 kg/hectare | 138 kg/hectare | 30 kg/hectare | 52 kg/hectare | 200 kg/hectare | 247 kg/hectare |
| Organic Farming Practices | Low adoption (2.8 million hectares) | Moderate adoption (2 million hectares) | Low adoption | Low adoption | Growing adoption | Low adoption |
|
Agricultural Activities India and Selected Countries (2) |
||||||
| Climate and Soil Diversity | Highly diverse : tropical, subtropical, arid, semi-arid |
Temperate, with some tropical regions | Mostly temperate and subarctic | Continental, with fertile black soil (Chernozem) | Tropical and subtropical, fertile plains | Tropical and subtropical |
| Government Support /S ubsidies | High, with MSP, subsidies on seeds, fertilizers | High, with subsidies on crops, insurance | Moderate, with subsidies focused on grain production | Moderate, transitioning to more market-driven policies | Moderate, focused on rice and export crops | High, with focus on rice and coffee |
| Agricultural Exports | $41 billion (primarily rice, spices, cotton) | $140 billion (soybeans, corn, wheat, fruits) | $29 billion (wheat, barley, sunflower oil) | $27 billion (corn, wheat, sunflower oil) | $40 billion (rice, rubber, fruits, sugar) | $43 billion (coffee, rice, pepper, seafood) |
| Agricultural Challenges | Small landholdings, low mechanization, water scarcity |
Climate change, soil degradation, water usage | Harsh climate, outdated infrastructure, rural depopulation | War-related disruptions, dependence on grain exports | Flooding, climate change, land degradation | Climate change, rural poverty |
Conclusion
India's economy has long been characterized by the predominance of agriculture, which employs nearly half of the workforce. While agriculture is vital for food security and rural livelihoods, its dominance is hindering industrial growth in several ways. A significant portion of financial resources, government subsidies, and land is dedicated to agriculture, limiting the availability for industrial development. The over-reliance on agriculture absorbs a large part of the labour force, many of whom work in low-productivity jobs. This restricts the availability of skilled labour for industries, leading to a shortage of workforce in manufacturing and services sectors. A large agricultural base means that rural economies remain dependent on farming, which is vulnerable to climatic variations and market fluctuations. Agriculture's dominance often results in slower adoption of modern technologies in the industrial sector. With fewer incentives to innovate, industries may struggle to compete globally, affecting India's overall economic development. Government policies are often skewed towards supporting agriculture, which can neglect the needs of the industrial sector.
To balance economic growth, India needs to reduce its excessive reliance on agriculture by promoting industrialization, enhancing skill development, and improving infrastructure, which will drive sustainable economic development and create a more diversified economy.
Author : CA A. K. Jain
Email: caindia@hotmail.com
Cell: +91 9810046108
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**********Disclaimer: The information and statistics presented in this article have been compiled from various sources deemed reliable. However, readers are advised to independently verify the accuracy and relevance of the data before making any decisions or taking action based on the information provided herein. The author and publisher do not assume any responsibility or liability for any consequences resulting from reliance on the information presented in this article.
2024/08/29
