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Agro Predominance Challenges to India's Overall Economic Development Author : CA A. K. Jain  -Chapter Headings-
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Preamble
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Solutions for
Sustainable Development
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Government
Initiatives in Agriculture
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Challenges in
Agro Development
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Limited Success
for Government Schemes
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Comparative
Analysis of Agri Activities * 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 Several factors contribute to this low productivity, including small landholdings, dependence on monsoon, outdated farming techniques, inadequate infrastructure, and policy-related issues.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.
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.
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. (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.
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.
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.
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 :
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.
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.
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.
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.
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.
**********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 |
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