View of AGRICULTURE SECTOR: PRESENT CONDITION AND EFFORTS OF INDIAN GOVERNMENT FOR THE SUSTAINABLE DEVELOPMENT

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Vol.04,Special Issue 02, 13^th Conference (ICOSD) February 2019, Available Online: www.ajeee.co.in/index.php/AJEEE

AGRICULTURE SECTOR: PRESENT CONDITION AND EFFORTS OF INDIAN GOVERNMENT FOR THE SUSTAINABLE DEVELOPMENT

Deepak Kumar Dhaker

MBA II Semester, Om Kothari Institute Management and Research, Kota Mr. Mohit Pant

HOD (MBA), Om Kothari Institute Management and Research, Kota

Abstract - Agriculture is the primary sector in India and 70 per cent of population are related directly and indirectly with this sector. The contribution of agriculture to Indian GDP is approx. 25 per cent. The Indian food and grocery market are the world’s sixth largest with retail contributing about 70 per cent of the sales of agriculture commodity.

Agriculture Industry helps to increase employment, international trade (which accounts to almost 15% of our total exports) development of tertiary sector like banking, warehousing in Industrial development. Therefore, purpose of this article is to highlight various challenges and solution to improve the condition of Indian farmer. Major challenges of agriculture industry are irrigation, low water resources, latest improved seeds, timely availability of fertilizers, inadequate storage facilities, poor transportation, lack of modern agriculture machine & equipment, low storage life of agriculture product, high cost of productions, unavailability of credit facility and poor marketing & MSP. Beside that the Indian farmers are poor, illiterate, ignorant, superstitious, conservative and unaware of various government scheme etc.

This article also highlights various efforts by the Indian government to improve the agriculture sector such as water resources management & latest improved irrigation facility, bridging the knowledge gap, ensuring food security, fostering rural non-farming growth, fertilizer management, agricultural research for new high productivity seeds and proper storage facilities. Some of the important support services required for the smooth functioning of agricultural sector include communication services, public policies, security, safety and finance for the farmers.

Key Words- Agriculture Sector, GDP, MSP, Fertilizer Management, Seeds, Modern Agricultural Technology, Agro Based Industry.

1 INTRODUCTION

Agriculture includes cultivation of the soil, growing and harvesting crops, breeding and raising livestock, dairying and forestry. Modern agriculture depends on high engineering, technology, biological and physical science. Which is important in successful farming- irrigation, drainage, conservation and sanitary engineering.Agriculture chemistry related with other vital farming concerns, such as fertilizer, insecticides, and fungicides, soil make-up, analysis of agricultural products, and nutritional needs of farm animals.The Indian food processing industry which accounts 32 per cent of the country’s total food market is one of the largest industries in India and ranked fifth in terms of production, consumption, export and expected growth.

1.1 Agriculture Sector the backbone of Indian GDP

Agriculture is considered the backbone of Indian economy.

Agriculture continues to provide employment to around 65 per cent of the total workforce. Agriculture single largest contribution to GDP (Gross Domestic Product), accounting for approx. 25 per cent of the total. The annual average rate of growth of agriculture GDP has also declined from around 4 per cent during 2014- 15.

India

GDP Last Previous Now/Hi

ghest Lowest Unit GDP

growthrate 1.50 1.80 5.80 -1.80 Percenta ge GDP per

capita 6427 6096 6427 1737 USD

2 CHALLENGES OF INDIAN AGRICULTURE SECTOR

1. Overcrowding in agriculture

According to 2011 Agricultural Census of India, an estimated 61.5%

of the 1300 million Indian population is rural and dependent on agriculture. The number of farming households is 159.6 million.

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Vol.04,Special Issue 02, ¹³^th Conference (ICOSD) February 2019, Available Online: www.ajeee.co.in/index.php/AJEEE

2. Lack of credit and market facilities:

Due to inadequate credit and marketing facilities the cultivators are not able to plan their investment.

If investment facilities are providing, they can go a long way in improving the agriculture productivity in India.

3. Small and fragmented land-holdings:

The seemingly abundance of net sown area of 141.2 million hectares and total cropped area of 189.7 million hectares (1999-2000) pales into insignificance when we see that it is divided into economically unviable small and scattered holdings. The average size of holdings was 2.28 hectares in 1970-71 which was reduced to 1.82 hectares in 1980-81 and 1.50 hectares in 1995-96. The size of the holdings will further decrease with the infinite Sub-division of the land holdings.

4. Seeds:

Seed is a critical and basic input for attaining higher crop yields and sustained growth in agricultural production.

Distribution of assured quality seed is as critical as the production of such seeds.

Unfortunately, good quality seeds are out of reach of most farmers, especially small and marginal farmers mainly because of exorbitant prices of better seeds. High Yielding Variety Programme (HYVP) was launched in 1966-67 as a major thrust plan to increase the production of food grains in the country.

5. Manures, Fertilizers and Biocides:

Indian soils have been used for growing crops over thousands of years without caring much for replenishing. This has led to depletion and exhaustion of soils resulting in their low productivity. The average yields of almost all the crops are among t e lowest in the world. This is a serious problem which can be solved by using more manures and fertilizers.

Manures and fertilizers play the same role in relation to soils as good food in relation to body. Just as a well-nourished body can do any good job, a well-nourished soil can give good yields. It has been estimated that about 70 per cent of growth in agricultural production can be attributed to increased fertilizer application.

per cent of the gross cropped area still depends upon rains which are very uncertain, insufficient, and irregular.

Even in areas having irrigation facilities, potential is not wholly utilized because of defective management. The cost of irrigation is also increasing continuously and the small farmers, therefore, unable to make use of available irrigation facilities.

This is testified by the success story of agricultural progress in Punjab, Haryana and western part of Uttar Pradesh where over half of the cropped area is under irrigation! Large tracts still await irrigation to boost the agricultural output.

7. Lack of new modern machine &

equipment:

Despite the large-scale mechanization of agriculture in some parts of the country, most of the agricultural operations in larger parts are carried on by human hand using simple and conventional tools and implements like wooden plough, sickle, bullocks, etc.

Little or no use of machines is made in ploughing, sowing, irrigating, thinning and pruning, weeding, harvesting threshing and transporting the crops. This is specially the case with small and marginal farmers. It results in huge wastage of human labour and in low yields per capita labour force.

8. Agricultural Marketing:

Agricultural marketing continues to be in a bad shape in rural India. In the absence of sound marketing facilities, the farmers must depend upon local traders and middlemen for the disposal of their farm produce which is sold at throw-away price.

In most cases, these farmers are forced, under socio-economic conditions, to carry on distress sale of their produce.

In most of small villages, the farmers sell their produce to the money lender from whom they usually borrow money.

According to an estimate 85 per cent of wheat and 75 per cent of oil seeds in Uttar Pradesh, 90 per cent of Jute in West Bengal, 70 per cent of oilseeds and 35 per cent of cotton in Punjab is sold by farmers in the village itself. Such a

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middlemen dominate the marketing and trading of agricultural produce. The remuneration of the services provided by the middlemen increases the load on the consumer, although the producer does not derive similar benefit.

9. Inadequate storage facilities

Storage facilities in the rural areas are either totally absent or grossly inadequate. Under such conditions the farmers are compelled to sell their produce immediately after the harvest at the prevailing market prices which are bound to be low. Such distress sale deprives the farmers of their legitimate income.

The Parse Committee estimated the post- harvest losses at 9.3 per cent of which nearly 6.6 per cent occurred due to poor storage conditions alone. Scientific storage is, therefore, very essential to avoid losses and to benefit the farmers and the consumers alike.

10. Poor transportation

One of the main handicaps with Indian agriculture is the lack of cheap and efficient means of transportation. Even at present there are lakhs of villages which are not well connected with main roads or with market centers.

Most roads in the rural areas are Kutcha (bullock- cart roads) and become useless in the rainy season. Under these circumstances the farmers cannot carry their produce to the main market and are forced to sell it in the local market at low price. Linking each village by metaled road is a gigantic task and it needs huge sums of money to complete this task.

11. Low storage life of agriculture product:

The lack of quick and easy transport facilities increases the magnitude of the loss of production and in turn increases the cost of agro-Based products.

Consequently, this affects the competitiveness of the product in international markets. At the same time to increases environment hazards.

2.1 Government of India initiative for the development of agriculture sector:

2.2 Credit for farmers:

Pradhan Mantri FasalBimaYojna is biggest risk cover and safety net provided by the government.Under interest subvention scheme short- term crop loans up to 3 lakh with the interest rate of 7% per annum up to one year made available.

The Modi Government has taken important policy initiatives to address the issue of farm credit and save farmers from being exploited in the hands of informal credit sources such as moneylenders.

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2.3 New Plan and Policies launched by Indian government of improve farmer condition

1. Prime Minister Krishi SinchayeeYojana(PMKSY)

Har Khet ko Pani“Prime Minister Krishi Sinchayee Yojana”.

Government of India is committed to accord high priority to water conservation and its management. To this effect Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has been formulated with the vision of extending the coverage of irrigation

‘Har Khet ko pani’ and improving water use efficiency ‘More crop per drop' in a focused manner with end to end solution on source

creation, distribution,

management, field application and extension activities. The Cabinet Committee on Economic Affairs chaired by Hon’ble Prime Minister has accorded approval of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) in its meeting held on 1st July, 2015. PMKSY has been approved for implementation across the country with an outlay of Rs. 50,000 crore in five years.

For 2015-16, an outlay of Rs.5300 crore has been made which includes Rs. 1800 crore for DAC;

Rs. 1500 crore for DoLR; Rs. 2000 crore for MoWR(Rs. 1000 crore for AIBP; Rs. 1000 crores for PMKSY

2. Pradhan Mantri Fasal Bima Yojana(PMFBY)

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2.4 An increasing marketable surplus of agricultural output is very much essential in India for

I. Increasing supply of food and raw materials at non-inflationary prices;

II. Widening the domestic market for industrial products through higher purchasing capacities in the rural sector;

III. Facilitating inter-sectoral transfers of capital needed for industrial development along-with infra- structural development;

IV. Increasing foreign exchange earnings through increasing volume of agricultural exports.

3 ROLES OF AGRICULTURE IN INDIAN ECONOMY

1. Contribution to National Income:

From the very beginning, agriculture is contributing a major portion to our national income. In 1950-51, agriculture and allied activities contributed about 59 per cent of the total national income.

Although the share of agriculture has been declining gradually with the growth of other sectors but the share still remained very high as compared to that of the developed countries of the world. For example, the share of agriculture has declined to 54 per cent in 1960-61, 48 per cent in 1970-71, 40 per cent in 1980-81 and then to 18.0 per cent in 2008-09, whereas in U.K. and U.S.A. agriculture contributes only 3 per cent to the national income of these countries.

2 Source of Employment

Today almost 65 per cent of the population depends directly or indirectly on agriculture. The greater intendance of working population on agriculture indicates the under development of non- agriculture activities in the country.

3. Source of Food Supply:

Agriculture is the only major source of food supply as it is providing regular supply of food to such a huge size of population of our country. It has been estimated that about 60 per cent of household consumption is met by agricultural products.

4. Role of Agriculture for Industrial Development:

Agriculture in India has been the major source of supply of raw materials to various important industries of our country. Cotton and jute textiles, sugar,

vanaspati, edible oil plantation industries (viz. tea, coffee, rubber) and agro-based cottage industries are also regularly collecting their raw materials directly from agriculture.

About 50 per cent of income generated in the manufacturing sector comes from all these agro-based industries in India. Moreover, agriculture can provide a market for industrial products as increase in the level of agricultural income may lead to expansion of market for industrial products.

5. Commercial Importance

Indian Agriculture is playing a very important role both in the internal and external trade of the country. Agricultural products like tea, coffee, sugar, tobacco, spices, cashew-nuts etc. are the main items of our exports and constitute about 50 per cent of our total exports. Besides manufactured jute, cotton textiles and sugar also contribute another 20 per cent of the total exports of the country. Thus nearly 70 per cent of India’s exports are originated from agricultural sector.

Further, agriculture is helping the country in earning precious foreign exchange to meet the required import bill of the country.

6. Source of Government Revenue:

Agriculture is one of the major sources of revenue to both the Central and State Governments of the country. The Government is getting a substantial income from rising land revenue. Some other sectors like railway, roadways are also deriving a good part of their income from the movement of agricultural goods.

4 CONCLUSIONS

Agriculture Sector is one of the strong contributor of GDP and pillar of Indian economy. Agricultural Sector progress and growth is associated with the Agricultural Research in India, which has an interesting history regarding its role in the growth and development of this sector. It started during the colonial era and today India boosts of an agricultural research system which includes some 49 ICAR institutions along with several national research centers, bureaus, project directorates, AICRPs, KVKs, State and Central Agricultural Universities where 27,500 scientists and more than 100,000 supporting staff are actively engaged

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in agricultural research. This makes the Indian agricultural research system probably the largest in the world. At present, ICAR plays a central role at the national level and it aids, promotes and coordinates research and education activities throughout the country.

The research and education responsibilities at the state level rest with the State Agricultural Universities. Inaddition to these main streams of research, some general universities and other agencies like scientific organizations related to agriculture, Government departments voluntary organizations, private institutions (private seed companies, poultry farms), etc. participate in the nation’s research efforts. Hence, the role of the NARS in the development of agricultural research is of great importance, with in which all these organizations come. Five-year plans play a major role regarding investment, technology transfer and other aspects related to agricultural development in India. In fact, the place assigned agriculture in the Five- Year Plans after independence can be best judged from allocation to this sector in each plan. The outlay on agriculture has been rising steeply during the successive plans. It rose from Rs 601 crore in the First-Five Year Plan to Rs 50,924 crore in the 11th Plan (2007–12). Although agriculture has been playing the most decisive role in Indian economy, during the study, it has been observed

that not much emphasis has been given to the evolution of agricultural research in India, which has an incredible history of development. It is necessary to track the historical development of agricultural research in India, which will help in forecasting the future of Indian agriculture.

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