CONTENS

 INTRODUCTION

 AGRICULTURE IN INDIA

 ROLE OF AGRICULTURE IN INDIAN ECONOMY

 PROBLEMS

 IMPACTS OF GLOBALISATION ON AGRICULTURE

 INITIATIVE

 CONCLUSION

 BIBLIOGRAPHY
INTRODUCTION

Agriculture is the dominant sector of Indian economy, which determines the

growth and sustainability. About 65% of the population still relies on agriculture
for employment and livelihood.

Indian agriculture however, has milestones. The green revolution transformed

India form a food deficient stage to a surplus food market. In a span of 3 decades,
India became a net exporter of food grains. Remarkable results were achieved in
these fields of dairying and oil seeds through white and yellow revolutions. The
sector could not however maintain its growth momentum in the post green
revolution years, the strategic growth in agriculture and the accelerated growth in
industry reversed the structure of national GDP in Indian economy.

Despite these major structural transformations, the agriculture sector continues

to accommodate the major share of the workforce. The sector is prone to output
fluctuations even after establishing better input facilities and technology like
irrigation, High yielding seeds, changes in cropping pattern etc.

India is yet to emerge as significant trade partner in the world agriculture market.
India holds around 1% of the global trade-in agricultural commodities. With the
ongoing trade negotiations under the WTO, Indian Agriculture needs to reorient
its outlook and enhance competitiveness to sustain growth from a demand side.

With India being a major negotiator on world agriculture trade, it can be expected
that Indian agriculture trade will expand in the years to come. This process
started with the India signing the Agreement on Agriculture (AOA) during the
Uruguay Round. Now that the fourth Ministerial of WTO at Doha has mandated
further negotiations on agriculture trade to improve market access India can look
forward to a bright trade prospects in agriculture with proper policy support.

The Indian Agriculture Industry is on the brink of a revolution that will modernize
the entire food chain, as the total food production in India is likely to double in
the next ten years.

As per recent studies the turnover of the total food market is approximately
Rs.250000 crores (US $ 69.4 billion) out of which value-added food products
comprise Rs.80000 crores (US $ 22.2 billion). The Government of India has also
approved proposals for joint ventures, foreign collaborations, industrial licenses
and 100% export oriented units envisaging an investment of Rs.19100 crores (US
$ 4.80 billion) out of which foreign investment is over Rs. 9100 crores (US $ 18.2
Billion). The agricultural food industry also assumes significance owing to India's
sizable agrarian economy, which accounts for over 35% of GDP and employs
around 65 per cent of the population. Both in terms of foreign investment and
number of joint- ventures / foreign collaborations, the consumer food segment
has the top priority. The other attractive features of the indian agro industry that
have the capacity to lure foreigners with promising benefits are the deep sea
fishing, aqua culture, milk and milk products, meat and poultry segments.

Excellent export prospects, competitive pricing of agricultural products and

standards that are internationally comparable has created trade opportunities in
the agro industry. This further has enabled the Indian Agriculture Industry Portal
to serve as a means by which every exporter and importer of India and abroad,
can fulfill their requirements and avail the benefits of agro related buy sell trade
leads and other business opportunities.

This Indian agro industry revolution brings along the opportunities of profitable
investment and agriculture-industry-india.com provides you the B2B platform
with agro related trade leads, exporters & importers directory etc. that help you
make your way to profit easy.

To lead yourself to the destination of profit through the Indian Agriculture

Industry, know maximum about the EXIM policy, programs & schemes, price
policy, seed policy and statistics at the Indian agro portal and harvest benefits
from India, world's second largest producer of food and a country with a billion
people. From canned, dairy, processed, frozen food to fisheries, meat, poultry,
 food grains, alcoholic beverages & soft drinks, the Indian agro industry has dainty
areas to choose for business.

Project Details:

Title of the Project: “PROBLEM AND PROSPECTOS OF AGRICULTURE IN INDIA.

Objective of the Project:

i) To find out factors affecting growth of agriculture sector.

ii) To find out the effects of decline in agriculture sector on the Indian economy.
iii) To find out solutions for the revival of Indian agriculture sector after analyzing
different Interventions adopted in India and different countries.
iv) To find out how Agro-Marketing can help in the revival of Indian agriculture sector
and how to use it for overall change in the agriculture sector?

Description of the Project in Brief: Since, 60% of Indian population still depends
on agriculture sector and it provides base for many of the industries so it becomes
matter of great importance to have a substantial growth in this sector.
As,agriculture in India is not in the healthy situation so finding out the factors
responsible for this is very important. Not only this, but finding out the solutions
for the revival for the agriculture is also significant and in this regard to have a
broader view on the concept of Agro-Marketing and to find out the best possible
use of Agro-Marketing for the revival of agriculture sector is essential.

Methodology:

Secondary data will be collected from the books, internet, agri-business journals
and magazines.
AGRICULTURE IN INDIA

Agriculture has a significant role in socio-economic fabric of India. Here Sikh

farmers are deploying a tractor and cane
crusher to produce and distribute free cane
juice on an Indian festival.

Several festivals relate to Agriculture in India.

Holi - the festival of colors - is celebrated across
India as the coming of spring. It is celebrated
with bonfires, meeting friends and strangers,
playful painting each other with colors.

Farms in rural India. Most farms in India are small plots such as in this image.

Agriculture in India has a significant history. Today, India ranks

second worldwide in farm output. Agriculture and allied sectors
like forestry and fisheries accounted for 16.6% of the GDP in 2009,
about 50% of the total workforce. [1] The economic contribution of
agriculture to India's GDP is steadily declining with the country's
broad-based economic growth. Still, agriculture is demographically the broadest
economic sector and plays a significant role in the overall socio-economic fabric of
India.

Per 2010 FAO world agriculture statistics, India is the world's largest producer of
many fresh fruits and vegetables, milk, major spices, select fresh meats, select
fibrous crops such as jute, several staples such as millets and castor oil seed. India
is the second largest producer of wheat and rice, the world's major food staples.[2]
India is also the world's second or third largest producer of several dry fruits,
agriculture-based textile raw materials, roots and tuber crops, pulses, farmed fish,
eggs, coconut, sugarcane and numerous vegetables. India ranked within the
world's five largest producers of over 80% of agricultural produce items, including
many cash crops such as coffee and cotton, in 2010.[2] India is also one the world's
five largest producers of livestock and poultry meat, with one of the fastest
growth rates, as of 2011.[3]

One report from 2008 claimed India's population

is growing faster than its ability to produce rice
and wheat.[4] Other recent studies claim India
can easily feed its growing population, plus
produce wheat and rice for global exports, if it
can reduce food staple spoilage, improve its
infrastructure and raise its farm productivity to
those achieved by other developing countries
such as Brazil and China.[5][6]

In fiscal year ending June 2011, with a normal monsoon season, Indian agriculture
accomplished an all time record production of 85.9 million tons of wheat, a 6.3
percent increase from a year earlier. Rice output in India also hit a new record at
95.3 million tons, a 7% increase from the year earlier.[7] Lentils and many other
food staples production also increased year over year. Indian farmers, thus
produced about 71 kilograms of wheat and 80 kilograms of rice for every member
of Indian population in 2011. The per capita supply of rice every year in India is
now higher than the per capita consumption of rice every year in Japan.[8]

India exported about 2 billion kilograms each of wheat and rice in 2011 to Africa,
Nepal, Bangladesh and other regions of the world.[7]

Aquaculture and catch fishery is amongst the fastest growing industries in India.
Between 1990 and 2010, Indian fish capture harvest doubled, while aquaculture
harvest tripled. In 2008, India was the world's sixth largest producer of marine
and freshwater capture fisheries, and the second largest aquaculture farmed fish
producer. India exported 600,000 metric tonnes of fish products to nearly half of
all the world's countries.
India has shown a steady average nationwide annual increase in the kilograms
produced per hectare for various agricultural items, over the last 60 years. These
gains have come mainly from India's green revolution, improving road and power
generation infrastructure, knowledge gains and reforms. [12] Despite these recent
accomplishments, agriculture in India has the potential for major productivity and
total output gains, because crop yields in India are still just 30% to 60% of the best
sustainable crop yields achievable in the farms of developed as well as other
developing countries.[13] Additionally, losses after harvest due to poor
infrastructure and unorganized retail cause India to experience some of the
highest food losses in the world.[

ACCOMPLISHMENTS
Indian agriculture is diverse, ranging from impoverished farm villages to
developed farms utilizing modern agricultural technologies. This image shows a
farming community in a more prosperous part of India.

A farm in Haryana, a northern state of India, prospering with India's Green

Revolution.

The changing face of Indian agriculture - formation of larger farms and adoption
of wind power generation technologies.

Rice farming in Bihar, an eastern state of India

A panoramic view of a rice, cassava and banana farm in Kerala, a southern state of
India.
A mustard farm in Rajasthan, a western state of India.

Amul - an integrated dairy with milk processing plant in Gujarat, a western state
of India.

India has some of the world's best agricultural yields in its tea plantations. An tea
estate in Kerala, a southern state of India

As of 2011, India had a large and diverse agricultural sector, accounting, on

average, for about 16 percent of GDP and 10 percent of export earnings. India's
arable land area of 159.7 million hectares (394.6 million acres) is the second
largest in the world, after the United States. Its gross irrigated crop area of 82.6
million hectares (215.6 million acres) is the largest in the world. India has grown
to become among the top three global producers of a broad range of crops,
including wheat, rice, pulses, cotton, peanuts, fruits, and vegetables. Worldwide,
as of 2011, India had the largest herds of buffalo and cattle, is the largest
producer of milk, and has one of the largest and fastest growing poultry
industries.[44]

The following table presents the twenty most important agricultural produce in
India, by economic value, in 2009. Included in the table is the average productivity
of India's farms for each produce. For context and comparison, included is the
average of the most productive farms in the world and name of country where
the most productive farms existed in 2010. The table suggests India has large
potential for further accomplishments from productivity increases, in increased
agricultural output and agricultural incomes.
ROLE OF AGRICULTURE IN INDIAN ECONOMY

Agriculture forms the backbone of Indian economy and despite concentrated

industrialisation in the last five decades, agriculture occupies a place of pride.
Being the largest industry in the country, agriculture is the source of livelihood for
over 70 per cent of population in the country. The significance of agriculture in
the national economy can be best explained by considering the role of agriculture.

Indian agriculture had reached the stage of development and maturity much
before the now advanced countries of the world embarked on the path of
progress. At that time, there was a proper balance between agriculture and
industry and both flourished hand in hand. This situation continued till the middle
of the eighteenth century. The interference from the alien British government
and its deliberate policy of throttling the village handicrafts and cottage industries
destroyed the fibre of balance and the economy of the country was shattered.
Britishers pursued a typical colonial policy in India and did nothing to develop (or
restore) agriculture. Instead, they created a class ofintermediaries known as
Zamindars who sucked the very blood out of the rural poor. A substantial part of
the produce was taken away by this parasitic class and the actual cultivator was
left only with subsistence income. The cultivators had neither the resources nor
the incentive to invest in agriculture. Therefore, Indian agriculture in the pre-
independence period can be correctly described as a “subsistence” occupation
which yielded “too little to live on and too much to die on”. The Zamindars and
moneylenders usurped a large part of land on the pretext of settlement for debts
taken by cultivators and a number of cultivators were thus left landless. This gave
 birth to the class of landless laborers, or agricultural workers who worked on the
land of others for wages which were often too merge to keep 13 the body and
soul together. A majority of farmer were just able to eke out a level of subsistence
from agricultural activities. It was only after the advent of planning (and more
precisely after the advent of green revolution in 1966) that some formers started
adopting agriculture on a commercial basis.

Agriculture is the primary source of livelihood for about 58 per cent of India’s
population. Gross Value Added (GVA) by agriculture, forestry and fishing was
estimated at Rs 19.48 lakh crore (US$ 276.37 billion) in FY20(PE). Growth in GVA in
agriculture and allied sectors stood at 4 per cent in FY20.
The Indian food industry is poised for huge growth, increasing its contribution to
world food trade every year due to its immense potential for value addition,
particularly within the food processing industry. Indian food and grocery market is
the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian
food processing industry accounts for 32 per cent of the country’s total food market,
one of the largest industries in India and is ranked fifth in terms of production,
consumption, export and expected growth.

Market Size
During 2019-20* crop year, food grain production was estimated to reach a record
295.67 million tonnes (MT). In 2020-21, Government of India is targeting food grain
production of 298 MT.
Production of horticulture crops in India was estimated at a record 320.48 million
metric tonnes (MMT) in FY20 as per second advance estimates. India has the largest
livestock population of around 535.78 million, which translates to around 31 per cent
of the world population. Milk production in the country is expected to increase to
208 MT in FY21 from 198 MT in FY20, registering a growth of 10 per cent y-o-y.
Sugar production in India reached 26.46 MT between October 2019 and May 2020
sugar season according to Indian Sugar Mills Association (ISMA).
India is among the 15 leading exporters of agricultural products in the world.
Agricultural export from India reached US$ 38.54 billion in FY19 and US$ 28.93 billion
in FY20 (till January 2020).
The organic food segment in India is expected to grow at a CAGR of 10 per cent
during 2015-25 and is estimated to reach Rs 75,000 crore (US$ 10.73 billion) by 2025
from Rs 2,700 crore (US$ 386.32 million) in 2015.
Investments
According to the Department for Promotion of Industry and Internal Trade (DPIIT),
the Indian food processing industry has cumulatively attracted Foreign Direct
Investment (FDI) equity inflow of about US$ 9.98 billion between April 2000 and
March 2020.
Some major investments and developments in agriculture are as follows:

 In March 2020, Fact, the oldest large-scale fertiliser manufacturer in the

country, crossed one million production and sales mark.
 Nestle India will invest Rs 700 crore (US$ 100.16 million) in construction of its
ninth factory in Gujarat.
 In November 2019, Haldiram entered into an agreement for Amazon's global
selling program to E-tail its delicacies in the United States.
 In November 2019, Coca-Cola launched ‘Rani Float’ fruit juices to step out of
its trademark fizzy drinks.
  Two diagnostic kits developed by Indian Council of Agricultural Research (ICAR)
- Indian Veterinary Research Institute (IVRI) and the Japanese Encephalitis lgM
ELISA were launched in October 2019.

 Investment worth Rs 8,500 crore (US$ 1.19 billion) have been announced in
India for ethanol production.

Government Initiatives
Some of the recent major Government initiatives in the sector are as follows:

 In May 2020, Government announced the launch of animal husbandry

infrastructure development fund of Rs 15,000 crore (US$ 2.13 billion).
 In September 2019, Prime Minister, Mr Narendra Modi launched National
Animal Disease Control Programme (NADCP), expected to eradicate foot and
mouth disease (FMD) and brucellosis in livestock. In May 2020, Rs 13,343 crore
(US$ 1.89 billion) was allocated to the scheme.
 In May 2019, NABARD announced an investment of Rs 700 crore (US$ 100
million) venture capital fund for equity investment in agriculture and rural-
focused start-ups
 Under Union Budget 2019-20, Pradhan Mantri Samman Nidhi Yojana was
introduced where a minimum fixed pension of Rs 3000 (US$ 42.92) was to be
 provided to the eligible small and marginal farmers, subject to certain
exclusion clauses, on attaining the age of 60 years.

 The Government of India came out with Transport and Marketing Assistance
(TMA) scheme to provide financial assistance for transport and marketing of
agriculture products in order to boost agriculture exports.
 The Agriculture Export Policy, 2018 was approved by the Government of India
in December 2018. The new policy aimed to increase India’s agricultural export
to US$ 60 billion by 2022 and US$ 100 billion in the next few years with a
stable trade policy regime.
 The Government of India is going to provide Rs 2,000 crore (US$ 306.29
million) for computerization of Primary Agricultural Credit Society (PACS) to
ensure cooperatives are benefitted through digital technology.
 The Government of India launched the Pradhan Mantri Krishi Sinchai Yojana
(PMKSY) with an investment of Rs 50,000 crore (US$ 7.7 billion) aimed at
development of irrigation sources for providing a permanent solution from
drought.
 Government plans to triple the capacity of food processing sector in India from
the current 10 per cent of agriculture produce and has also committed Rs
6,000 crore (US$ 936.38 billion) as investments for mega food parks in the
country, as a part of the Scheme for Agro-Marine Processing and Development
of Agro-Processing Clusters (SAMPADA).
 The Government of India has allowed 100 per cent FDI in marketing of food
products and in food product E-commerce under the automatic route.

Achievements in the sector

  The Electronic National Agriculture Market (e-NAM) was launched in April
2016 to create a unified national market for agricultural commodities by
networking existing APMCs. It had 16.6 million farmers and 131,000 traders
registered on its platform until May 2020. Over 1,000 mandis in India are
already linked to e-NAM and 22,000 additional mandis are expected to be
linked by 2021-22.
 Sale of tractors in the country stood at 804,000 units in 2019 with export of
80,475 units.
 During FY20 (till February 2020), tea export stood at US$ 709.28 million.
 Coffee export stood at US$ 742.05 million in FY20.

 
 The Statistics Office of the Food and Agriculture Organization reported that, per
final numbers for 2020, India had grown to become the world's largest producer
of the following agricultural produce:

 Fruit Fresh  Pulses

 Lemons and Indigenous
limes Buffalo Meat
 Buffalo milk, Fruit,
whole, fresh tropical
 Castor oil seed  Ginger
 Safflower seed  Chick peas
 Sorghum  Areca nuts
 Millet  Other
 Spices Bastfibres
 Okra  Pigeon peas
 Jute  Papayas
 Beeswax  Chillies and
 Bananas peppers, dry
 Mangoes,  Anise,
mangosteens, badian, fennel,
guavas corian
  Goat milk,
whole, fresh

Per final numbers for 2020, India is the world's second largest producer of the
following agricultural produce:[52]

 Wheat  Cow milk,

 Rice whole, fresh
 Vegetables  Tea
fresh  Potatoes
 Sugar cane  Onions
 Groundnuts,  Cotton lint
with shell  Cottonseed
 Lentils  Eggplants
 Garlic (aubergines)
 Cauliflowers  Nutmeg,
and broccoli mace and
 Peas, green cardamoms
 Sesame seed  Indigenous
 Cashew nuts, Goat Meat
with shell  Cabbages and
 Silk-worm other brassicas
cocoons, reelable  Pumpkins,
squash and
gourds

In 2009, India was the world's third largest producer of eggs, oranges, coconuts,
tomatoes, peas and beans.[52]

In addition to growth in total output, agriculture in India has shown an increase in

average agricultural output per hectare in last 60 years. The table below presents
average farm productivity in India over three farming years for some crops.
Improving road and power generation infrastructure, knowledge gains and
reforms has allowed India to increase farm productivity between 40% to 500%
over 40 years.[12] India's recent accomplishments in crop yields while being
impressive, are still just 30% to 60% of the best crop yields achievable in the farms
of developed as well as other developing countries. Additionally, despite these
gains in farm productivity, losses after harvest due to poor infrastructure and
unorganized retail cause India to experience some of the highest food losses in
the world.

Agriculture productivity in India, growth in average yields from 1970 to 2020

Average YIELD, Average YIELD, Average YIELD,

Crop[12]
1980-1991 2000-2010 2010–2020

kilogram per kilogram per kilogram per

hectare hectare hectare[54]

Rice 1123 1740 2240

Wheat 1307 2281 2938

Pulses 524 578 689

Oilseeds 579 771 1325

Sugarcane 48322 65395 68596

Tea 1182 1652 1669

Cotton 106 225 510

India and China are competing to establish the world record on rice yields. Yuan
Longping of China National Hybrid Rice Research and Development Center, China,
set a world record for rice yield in 2010 at 19 tonnes per hectare in a
demonstration plot. In 2011, this record was surpassed by an Indian farmer,
Sumant Kumar, with 22.4 tonnes per hectare in Bihar, also in a demonstration
plot. Both these farmers claim to have employed newly developed rice breeds
and System of Rice Intensification (SRI), a recent innovation in rice farming. The
claimed Chinese and Indian yields have yet to be demonstrated on 7 hectare farm
lots and that these are reproducible over two consecutive years on the same
farm.

PROBLEMS

A rural market in India - farmers with limited marketing options sell their surplus
produce in bulk to middlemen at a price that is less than 25% of the price paid by
Indian consumer. The lack of modern retail network is a major problem for Indian
agriculture.

India lacks cold storage, food packaging as well as safe and efficient rural
transport system. This causes one of the world's highest food spoilage rates,
particularly during Indian monsoons and other adverse weather conditions. Food
travels to the Indian consumer through a slow and inefficient chain of traders.
Indian consumers buy agricultural produce in suburban markets known as 'sabzi
mandi' such as one shown or from roadside vendors.

Cotton flower in India. This is the main cash crop in Vidarbha region.

Indian agriculture includes a mix of traditional to modern farming techniques. In

some parts of India, traditional use of cattle to plough farms remains in use.
Traditional farms have some of the lowest per capita productivities and farmer
incomes.

"Slow agricultural growth is a concern for policymakers as some two-thirds of

India’s people depend on rural employment for a living. Current agricultural
practices are neither economically nor environmentally sustainable and India's
yields for many agricultural commodities are low. Poorly maintained irrigation
systems and almost universal lack of good extension services are among the
factors responsible. Farmers' access to markets is hampered by poor roads,
rudimentary market infrastructure, and excessive regulation."

—World Bank: "India Country Overview 2008

"With a population of just over 1.2 billion, India is the world’s largest democracy.
In the past decade, the country has witnessed accelerated economic growth,
emerged as a global player with the world’s fourth largest economy in purchasing
power parity terms, and made progress towards achieving most of the
Millennium Development Goals. India’s integration into the global economy has
been accompanied by impressive economic growth that has brought significant
economic and social benefits to the country. Nevertheless, disparities in income
and human development are on the rise. Preliminary estimates suggest that in
2009-10 the combined all India poverty rate was 32% compared to 37% in 2004-
05. Going forward, it will be essential for India to build a productive, competitive,
and diversified agricultural sector and facilitate rural, non-farm entrepreneurship
and employment. Encouraging policies that promote competition in agricultural
marketing will ensure that farmers receive better prices."

—World Bank: "India Country Overview 2011

A 2003 analysis of India’s agricultural growth from 1970 to 2001, by Food and
Agriculture Organization of the United Nations, identified systemic problems in
Indian agriculture. For food staples, the annual growth rate in production during
the six-year segments 1970-76, 1976–82, 1982–88, 1988–1994, 1994-2000 were
found to be respectively 2.5, 2.5, 3.0, 2.6, and 1.8 percent per annum.
Corresponding analyses for the index of total agricultural production show a
similar pattern, with the growth rate for 1994-2000 attaining only 1.5 precent per
annum. The low growth rates may constitute in part a response to inadequate
returns to Indian farmers.[60] India has very poor rural roads affecting timely
supply of inputs and timely transfer of outputs from Indian farms, inadequate
irrigation systems, crop failures in some parts of the country because of lack of
water while in other parts because of regional floods, poor seed quality and
inefficient farming practices in certain parts of India, lack of cold storage and
harvest spoilage causing over 30% of farmer's produce going to waste, lack of
organized retail and competing buyers thereby limiting Indian farmer's ability to
sell the surplus and commercial crops. The Indian farmer receives just 10 to 23
percent of the price the Indian consumer pays for exactly the same produce, the
difference going to losses, inefficiencies and middlemen traders. Farmers in
developed economies of Europe and the United States, in contrast, receive 64 to
81 precent of the price the local consumer pays for exactly the same produce in
their supermarkets.

Even though, India has shown remarkable progress in recent years and has
attained self sufficiency in food staples, the productivity of Indian farms for the
same crop is very low compared to farms in Brazil, the United States, France and
other nations. Indian wheat farms, for example, produce about a third of wheat
per hectare per year in contrast with wheat farms in France. Similarly, at 44
million hectares, India had the largest farm area under rice production in 2009;
yet, the rice farm productivity in India was less than half the rice farm productivity
in China. Other food staples productivity in India is similarly low, suggesting a
major opportunity for growth and future agricultural prosperity potential in India.
Indian total factor productivity growth remains below 2 percent per annum; in
contrast, China has shown total factor productivity growths of about 6 percent
per annum, even though China too has smallholding farmers. If India could adopt
technologies and improve its infrastructure, several studies suggest India could
eradicate hunger and malnutrition within India, and be a major source of food for
the world.

Indian farms are not poor performing for every crop. For some, Indian farms post
the best yields. For example, some of India's regions consistently posts some of
the highest yields for sugarcane, cassava and tea crops every year.

Within India, average yields for various crops vary significantly between Indian
states. Some Indian states produce two to three times more grains per acre of
land than the grain produced in same acre of land in other Indian states. The table
compares the statewide average yields for a few major agricultural crops within
India, again for 2001-2002 agricultural year.[61]

Average farm Average farm yield in Average farm yield

Crop[
yield in Bihar Karnataka in Punjab

kilogram per kilogram per

kilogram per hectare
hectare hectare

Wheat 2020 unknown 3880

Rice 1370 2380 3130

Pulses 610 470 820

Oil seeds 620 680 1200

Sugarcane 45510 79560 65300

Crop yields for some farms within India are within 90% of the best achieved yields
by farms in developed countries such as the United States and in European Union.
No single state of India is best in every crop. Indian states such as Tamil Nadu
achieve highest yields in rice and sugarcane, Punjab enjoys the highest yields in
wheat and coarse grains, Karnataka does well in cotton, Bihar does well in pulses,
 while other states do well in horticulture, aquaculture, flower and fruit
plantations. These differences in agricultural productivity within India is a function
of local infrastructure, soil quality, micro-climates, local resources, farmer
knowledge and innovations. However, one of the serious problems in India is the
lack of rural road network, storage, logistics network, and efficient retail to allow
free flow of farm produce from most productive but distant Indian farms to Indian
consumers. Indian retail system is highly inefficient. Movement of agricultural
produce within India is heavily and overly regulated, with inter-state and even
inter-district restrictions on marketing and movement of agricultural goods. [61] The
talented and efficient farms are currently unable to focus on the crops they can
produce with high yields and at lowest costs.

One study suggests Indian agricultural policy should best focus on improving rural
infrastructure primarily in form of irrigation and flood control infrastructure,
knowledge transfer in forms of better yielding and more disease resistant seeds
with the goal of sustainably producing as many kilograms of food staples per
hectare as already produced sustainably in other nations. Additionally, cold
storage, hygienic food packaging and efficient modern retail to reduce waste can
also dramatically improve India’s agricultural output availability and rural
incomes.[61]

The low productivity in India is a result of the following factors:

 The average size of land holdings is very small (less than 2 hectares) and is
subject to fragmentation due to land ceiling acts, and in some cases, family
disputes. Such small holdings are often over-manned, resulting in disguised
unemployment and low productivity of labour. Some reports claim smallholder
farming may not be cause of poor productivity, since the productivity is higher in
China and many developing economies even though China smallholder farmers
constitute over 97 percent of its farming population.[62] Chinese smallholder
farmer is able to rent his land to larger farmers, China's organized retail and
extensive Chinese highways are able to provide the incentive and infrastructure
necessary to its farmers for sharp increases in farm productivity.
 Adoption of modern agricultural practices and use of technology is
inadequate, hampered by ignorance of such practices, high costs and
impracticality in the case of small land holdings.
 According to the World Bank, Indian Branch: Priorities for Agriculture and
Rural Development", India's large agricultural subsidies are hampering
productivity-enhancing investment. Overregulation of agriculture has increased
costs, price risks and uncertainty. Government intervenes in labour, land, and
credit markets. India has inadequate infrastructure and services. [63] World Bank
also says that the allocation of water is inefficient, unsustainable and inequitable.
The irrigation infrastructure is deteriorating.[63] The overuse of water is currently
being covered by over pumping aquifers, but as these are falling by foot of
groundwater each year, this is a limited resource.[64]
 Illiteracy, general socio-economic backwardness, slow progress in
implementing land reforms and inadequate or inefficient finance and marketing
services for farm produce.
 Inconsistent government policy. Agricultural subsidies and taxes often
changed without notice for short term political ends.
 Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of
the land was irrigated in 2003–04,[65] which result in farmers still being dependent
on rainfall, specifically the Monsoon season. A good monsoon results in a robust
growth for the economy as a whole, while a poor monsoon leads to a sluggish
growth.[66] Farm credit is regulated by NABARD, which is the statutory apex agent
for rural development in the subcontinent. At the same time overpumping made
possible by subsidized electric power is leading to an alarming drop in aquifer
levels.[67][68][69]
 A third of all food that is produced rots due to inefficient supply chains and
the use of the "Walmart model" to improve efficiency is blocked by laws against
foreign investment in the retail sector.[
 OPPORTUNITIES

. Excellent export prospects, competitive pricing of agricultural products and

standards that are internationally comparable has created trade opportunities in
the agro industry.

. An average Indian spends out about 50% of his/her household expenditure on

food items. With a population of over 1 billion and a 350 million strong urban
middle class and their changing food habbits .

. The relatively low cost but skilled workforce can be effectively utilized to set up a
large, low cost production base for domestic and export market.

. Foreign Direct Investment is not directly allowed in agriculture but there exist
ample opportunities in related sectors.

. Biotechnology refers to the techniques that allow scientists to modify the DNA
of crops to enhance their tolerance to pests and diseases, increase yields and
improve quality and nutritional value.

 Indian agricultural trade underwent significant changes in the post liberalization

era. This book “Indian Agricultural Trade in the 21st Century” examines these
changes in terms of production trends, trade patterns as well as policy initiatives.
The various articles in the book trace the Indian agricultural evolution in a general
perspective, and also track specific commodities in their trade patterns, with
special focus on the post-1991 period. The articles in the initial section on
agriculture in general help identify those commodities, which hold high export
prospects, and track their progress in international trade. Trade policy initiatives
are also examined in the light of trade facilitation in the country. Trade in food
crops is determined by the domestic requirements, in order to ensure domestic
food self-sufficiency and security. Hence, trade policies strike a balance between
domestic pricing, demand, and external trade prospects. Agricultural Export
Zones and trade in agriculture in the light of Sanitary and Phyto Sanitary measures
of the WTO are also examined. The section on Horticulture and dairy products
reveals the dominant position of India in fresh fruit and dairy production, and the
huge export potential that remains to be tapped. Impact of trade liberalization on
dairy farming is examined, besides looking at floriculture as a viable commercial
option, in view of the growing international floricultural market. A recent
phenomenon of terminal markets in fresh fruits is also examined. Export oriented
perspective is being provided in articles on sea farming, and Indian fisheries, along
with an economic analysis of shrimp farming in India. The final section discusses
plantation crops, oilseeds and cash crops. Plantation crops are examined in view
of their export potential with a special focus on the rubber industry in India.
Oilseeds, an important contributor to India s foreign exchange, are examined in
the light of the WTO regime. The last article deals with the cashew nut industry
tracing its origin, growth and trade trends in India. Some of the recommendations
of the National Commission on Agriculture to promote international trade are
also examined.
Globalization affects every econmic sector - for the better nad worse, per se.

In the agricultural sector, crop imports could be traded at cheaper prices, and
could be exchange for another commodity becasue of the free trade - as entailed
among the provisions of WTO. In this way, countries that rely primarily on
agriculture (i.e. the Philippines), could purchase or import crops from another
country at cheaper tariff rates, in case of a shortage. However, on the downside,
countries that are more progressive agriculturally could just dump their third-rate
or low-class products to their third-world trading counterpart. Thus, poor quality
products could be received by the "lesser" country. "Quality Control" of the
traded products is the main issue.

The same thing holds true for the industrial sector. Exchnage of technoligical and
industrial products will definitely exist. Both prducts may benefit mutually.
Nonetheless, a possible detraction
is again the instances of poor
imported products from the
superior countries, just like in the
issue of the agricultural sector.

Simply put, Globalization has its

benefits as well as disadvantages.
But generally, the free trade among
nations - its exisitng policies - must
be reviewed in order to protect the
developing countries from receiving low-class imports. These countries are yet to
adjust and compete globally, they are not ready to enter the fray and go head-to-
head with the titans. Therefore, it must be imperative that the governing rules
must be ammended. Although the free trade is yet to completely implemented, at
least on the Philippine setting, nevertheless, it must be reviewed to protect and
given cushion to the developing nations.
1. Globalisation aims at integrating our national economy with that of the world.
It is to be realised within a certain time frame. It is based on the philosophy of
free and open international trade.

2. In the changed scenario, we have to make a better use of our favourable

climatic and soil conditions.

3. We have relatively inexpensive, abundant human labour. Every effort will have
to be made to raise their efficiency and equip them with new and advanced tools.

4. Implements and machines to enable them to compete with their counterparts

in the advanced countries of the world.

5. With globalisation we now have a better access to reasonably and abundant

capital from different parts of the world.

6. Thus to begin with we may have to face hardships and difficulties sometimes
but it will pay us in the long run.

7. In order to stand in the global competition therefore India has to use its vast
potential of agriculture in a systematic and planned manner.

8. We should develop some of the techniques which the developed countries

have been using.

9. Use of the biotechnology may be one such step. Creation of an unrestricted

unified national market for farm products within the country may be another
step.
INITIATIVES

Viticulture farms in Maharashtra, a western state in India.

A coffee plantation in Kerala. India is the fifth largest producer of coffee beans in the world, according to
the statistics office of the FAO.

The required level of investment for the development of marketing, storage and cold storage
infrastructure is estimated to be huge. The government has not been able to implement various
schemes to raise investment in marketing infrastructure. Among these schemes are Construction
of Rural Go downs, Market Research and Information Network, and Development /
Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization.[71]

The Indian Agricultural Research Institute (IARI), established in 1905, was responsible for the
research leading to the "Indian Green Revolution" of the 1970s. The Indian Council of
Agricultural Research (ICAR) is the apex body in agriculture and related allied fields, including
research and education.[72] The Union Minister of Agriculture is the President of the ICAR. The
Indian Agricultural Statistics Research Institute develops new techniques for the design of
agricultural experiments, analyses data in agriculture, and specializes in statistical techniques for
animal and plant breeding.

Recently Government of India has set up Farmers Commission to completely evaluate the
agriculture program.[73] However the recommendations have had a mixed reception.

In November 2011, India announced major reforms in organized retail. These reforms would
include logistics and retail of agricultural produce. The reform announcement led to major
political controversy. The reforms were placed on hold by the Indian government in December
2011.
CONCLUSION

India is expected to achieve the ambitious goal of doubling farm income by 2022.
The agriculture sector in India is expected to generate better momentum in the
next few years due to increased investment in agricultural infrastructure such as
irrigation facilities, warehousing and cold storage. Furthermore, the growing use
of genetically modified crops will likely improve the yield for Indian farmers. India
is expected to be self-sufficient in pulses in the coming few years due to
concerted effort of scientists to get early maturing varieties of pulses and the
increase in minimum support price
The Government of India trusts that the National Seeds Policy will receive the fullest support of
State Governments/Union Territory Administrations, State Agricultural Universities, plant
breeders, seed producers, the seed industry and all other stakeholders, so that it may serve as a
catalyst to meet the objectives of sustainable development of agriculture, food and nutritional
security for the population, and improved standards of living for farming communities.

The National Seeds Policy will be a vital instrument in attaining the objectives of doubling food
production and making India hunger free. It is expected to provide the impetus for a new
revolution in Indian agriculture, based on an efficient system for supply of seeds of the best
quality to the cultivator.

The National Seeds Policy will lay the foundation for comprehensive reforms in the seed sector.
Significant changes in the existing legislative framework will be effected accompanied by
programmatic interventions. The Policy will also provide the parameters for the development of
the seed sector in the Tenth and subsequent Plans. The progress of implementation of the
Policy will be monitored by a High Level Review Committee.
 BIBLIOGRAPHY

BOOKS

Indian Economy, Dr Ashwani Mahajan

NEWSPAPERS

 Economic Times
 The Times of India
 Business Times

WEBSITES

 www.google.com
 www.wikipedia.org