Issues in Agricultural Development

Agriculture contributes a significant share to the national income (26%) but more importantly it is a major source of livelihood for majority of work force in the countryside.

However, the per hectare production of different principal crops in the country is relatively low. In some cases it is as low as 1/4th to 1/5th as compared to other countries due to traditional methods of cultivation, small farms size, low investment, low input, poor health and lack of education among the farmers, lack of linkages between agriculture and industry, and poor condition of infrastructure. Limited availability of cultivable land and ever increasing population has left no alternative but to increase productivity of crops.

It is this sector that continues to have great potential for reducing poverty and hunger in rural areas.

A. The Use of Farm Inputs

For high growth rate, farm inputs like seeds, fertilizers, and irrigational facilities play an important role. The use of high yielding varieties of seeds, chemical fertilizers have increased particularly in Green Revolution areas of Punjab, Haryana, western Uttar Pradesh, coastal Andhra Pradesh and Tamil Nadu.

However, in several other parts of the country the use of chemical fertilizers is much below the national average. In regard to irrigation, the irrigated land in the country is less than 50 per cent of the potential. Hence, there is a need for equitable and efficient use of inputs in the country so that regional disparities in its use can be minimized.

Another important factor associated with use of chemical fertilizers is their imbalanced use. Nitrogen, phosphorous and calcium required by the plants for balanced growth and good health of the soils are not used by most of the Indian farmers. There is over emphases on the use of nitrogen, resulting in damage to fertility of soils and adverse effect on crop productivity.

B. Small Size of Land holdings

About 89 per cent of operational farm holdings in the country are below two hectares in size. Over 70 per cent of agricultural production comes from the subsistence agriculture.

Unless small farmers are helped to improve the productivity and profitability of their farms, the agriculture in India will not develop in its true sense. This can be possible by optimum use of available land, water, credit facilities and labour resources.

C. Farm Mechanization

The use of improved agricultural implements and machines such as the plough, tractor, trolley, harvester, thrasher, water pump, sprinkler, etc. are important to modernize Indian agriculture. These machines are being used in some parts of the country.

Diffusion of modern farm technology and techniques is both necessary as well as a big challenge. To increase productivity, some agricultural implements are being made available to the farmers through Development Blocks and Co-operative Societies.

D. Consolidation of Holdings

Small and scattered holdings of land are one of the reasons of low agricultural productivity in India. This is an obstacle in the way of modern agriculture in which machines, improved equipments and techniques are used. These problems are being minimized through consolidation of land holdings.

However, in many parts of the country it is still a big problem. For example, apart from hill states, Rajasthan and Bihar are two states in the northern plain where land consolidation is yet to be implemented. This problem needs to be addressed on priority basis by the respective governments.

E. Diversification of Agriculture

Diversification of agriculture means a shift of resources from farm to allied activities, e.g. shift to dairy farming. Also, there is a need to give more importance to higher value crops in comparison to lower value. The diversification will improve income, generate employment, alleviate poverty, increase productivity, food security, and will also promote exports.

Although, impressive gains have been made in agricultural production by diversifying agriculture in some parts of the country like in Punjab, Haryana and western Uttar Pradesh, remaining parts of the country, still needs much attention.

F. Agriculture and Industry Interface

For the better development of agriculture, it must be linked with the industry. It will increase investment in agriculture and boost agricultural productivity. It will also increase industrialisation and employment opportunities. Although, the interdependence of agriculture and industry has increased over the years, yet much is required to be done in time to come. The agriculture and agriculture based industries need helping hand for over all development of rural areas.

G. Infrastructural Development

The Government has tried to develop various infrastructural facilities in rural areas like electrification, provision of irrigation facilities, construction of metaled roads to connect villages to the markets. The scheme of crops insurance has also been introduced.

Awareness programs for farmers through radio and television are being relayed. A number of magazines are being published to provide the latest information about new techniques in agriculture. Recently call centers have been established to solve problems of farmers on telephone. But existing infrastructural facilities are not adequate in the country. There is a need of spreading these facilities to small farms, in general, and to the farmers of remote areas, in particular.

H. Agricultural Credit

Commercial banks, Regional Rural (Grameen) Banks and Cooperative banks, provide credit support and services for agricultural and rural development. Commercial Banks account for 50 per cent, Cooperative Banks 43 per cent and regional Rural Banks 7 per cent share in the credit flow for agriculture. Kissan Credit Card scheme was introduced in 1998-99 to facilitate access of credit to farmers from commercial banks and Regional Rural Banks. There is need for expanding this scheme to other geographical areas.

I. Globalization and Indian Agriculture

Globalization, in simple term means integration of the economy of a country with worlds economy. In Indian context, this refers to the opening up the economy to foreign direct investment in different field of economic activities, removal of obstacles to the entry of Multi National Companies (MNC’s) in India, allowing Indian companies to enter into foreign collaborations, to encourage setting of joint ventures abroad, bringing down the level of import duties and opening the Indian market for the world.