A Report on IMPROVING AGRICULTURE PERFORMANCE SUBJECT: SEMINAR ON CONTEMPORARY ISSUES IN MANAGEMENT -1 (SCIM-1) (MB706)

Prepared by : VIRAL SHAH -- 095 MBA 2011-13, Semester I Submitted to: MR.GAURANG BADHEKA

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)

(I2IM)

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT) INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM) MBA PROGRAMME BATCH 2011-13, SEMESTER I

Certificate

It is hereby certified that this is the bona fide report of the work done by Mr./Ms. ________________________________________________ on the topic ___________________________________________________ as a part of the course Seminar on Contemporary Issues in Management I (MB706). This report is based on the independent work carried out by the student.

Faculty: Date:

EXCLUSIVE SUMMARY

It is my pleasure to give me opportunity to prepare this report; I have taken care of all the information about whole report. I am pleased to submit the findings of the project report for the purpose of evaluation by the examiner.

The project is whole about the findings the area of agricultural improvements. Throughout the report I have covered the concept of agriculture, challenges and reforms to the agriculture sector so we can get the knowledge about the concepts.

I have also focused on agriculture performance of the India, past-current-future aspects of agriculture, improvements and advantages & barriers. From the above data we can get the idea about the current situation and we can see the growth of the nation. At last I submitted my conclusion and the data sources.

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PARTICULAR
EXCLUSIVE SUMMARY WHAT IS AGRICULTURE PRESENT SYNARIO OF INDIA IN AGRICULTURE SECTOR PROBLEMS OF INDIAN AGRICULTURE CHALLENGES TO AGRICULTURE SECTOR REFORMS IN AGRICULTURE SECTOR

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IMPROVEMENTS CONCLUSION BIBLIOGRAPHY

1. WHAT IS AGRICULTURE?
Agriculture ( also called as farming husbandry) is farming, the cultivation of animals, plants, fungi and other life forms of food, fibers and other products used to sustain life.

Agriculture was the key implement in the rise of sedentary human civilization , where by farming of domesticated species created food surpluses that nurtured the development of civilization .

The study of agriculture is also known as agriculture science. Agriculture is also observed in certain species of ant and termite, but generally speaking refers to human activities.

It is essential to know the pattern of corps which are the mainly reliable to generating cash from agriculture sector. It can be made clear by the following table:
nature of crop pattern

food crops

cash crops

cereals

pulses

Cereals crops: Cereals are such crops which are directly used as food like wheat rice, bajara and joware etc. are called food crops. Pulses: Beans like mung, chana tuver are included in pulses. They are known as pulse crops. They are included in the food crops because they are the good sources of protins vegetarian people. Cash crops: Crops which generate income directly and not consumed directly are known as cash crops. E.g. cotton, jute etc.

2. PRESENT SCENARIO OF INDIA IN AGRICULTURE SECTOR

Our national economy is divided into 3 sectors. Primary sector (agriculture, animal, husbandry, forestry, and fishing etc. Secondary sector (industrial sector) Tertiary sector or service sector (banking, insurance, transport and communication etc.). In the initial stages of development, the primary sector, particularly agriculture is very important sector. In the process, share of agriculture in national income gradually increases however, importance of agriculture with respect to production and employment is much more in Indian economy. Total national production of the share of agriculture is about 25% ; of the total national production. The 60% of labor gets employment in the agriculture in India. In this relation the agriculture development is necessary to measure the productivity of families dependent on agriculture as well as certainty of income. India enjoys the second position all over the world in terms of agricultural production. During the period of 2009-10, farming and associated industries such as lumbering, forestry, and fishing represented approximately 15.7% of the Gross Domestic Product of the country. These industries also recruited 52.1% of the overall manpower of India. Outputs on a unitary basis for every type of harvest have increased from 1950. This has been possible since the government has put particular focus on farming operations in the five-year plans and stable developments in the domains of engineering science, irrigation,

implementation of contemporary farming operations, and supply of cultivation loans and grants after the Green Revolution took place in the country. Worldwide evaluative studies disclose that the mean agricultural output in the country is typically 30%-50% of the maximum average output in the world. YEAR 2000-01 2007-08 2009-10 CONTRIBUTION IN GDP 27.50% 16.60% 15.70% CONTRIBUTION TO EMPLOYMENT 56.70% 52% 52.10%

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2000-01 2007-08 2009-10 CONTRIBUTION IN GDP CONTRIBUTION TO EMPLOYMENT

Observation: It is clearly seen from the chart that the contribution in GDP and employment is gradually diminishing but if we see the whole picture of Indian economy we can see that it is appropriate contribution.

 What are the initiatives taken by Government for India Agriculture? In a huge country like India, the necessary extent of outlay for the expansion of merchandising, warehousing, and cold storage arrangement is expected to be massive. The Government of India has been earnestly trying to put into operation different plans to increase investment or outlay in merchandizing and commercializing. Some of the known plans and strategies of the Indian Government include the following: Market Research and Information Network Construction of Rural Godowns Grading and Standardization Development/Strengthening of Agricultural Marketing Infrastructure

The Indian Council of Agricultural Research (ICAR) is the principal authority in farming and ancillary industries, which comprise learning and research. The post of the President of the ICAR is held by the Union Minister of Agriculture and at present, Mr. Sharad Pawar is holding the position. The Indian Agricultural Research Institute (IARI) was set up in the year 1905. The institute had a key role in the studies and explorations that resulted in the Green Revolution in the decade of the 1970s. The Indian Agricultural Statistics Research Institute formulates new methods for the planning of agricultural testing. It also evaluates information associated with cultivation and offers expert advices in statistical methods for livestock and tree raising.

Of late, the Government of India has established Farmers Commission to fully assess the cultivation plan. Nonetheless, the suggestions received varied responses. India ranks as the second biggest producer of the following: Cabbages Rice Cashews Dry beans Fresh vegetables Lentil Cotton seed and lint Tea Brinjal Groundnut Garlic Cauliflowers Silk Green peas Goat meat Pumpkins Cardamom Potatoes Nutmeg and Mace Gourds Wheat Squashes Inland fish Onions Sugarcane The population of India is increasing at a faster pace than its capacity to produce wheat and rice. India holds the second position in production of wheat, rice, cotton, sugarcane, and groundnuts. It is also the second biggest harvester of vegetables and fruit, representing 8.6% and 10.9% of the overall vegetable and fruit production in the world correspondingly

The country is the top producer of jute, milk, and pulses and holds the second rank in the production of silk and it is the biggest consumer of silk in the world. In 2005, the country produced 77,000 million tons of silk. Today, India second worldwide in farm output. and allied sectors like and accounted for 16.6% of the GDP in 2007, employed 52% of the total workforce and despite a steady decline of its share in the GDP, is still the

largest economic sector and plays a significant role in the overall socialeconomic development of India.

GREEN REVOLUTION IN INDIA

Concept: The concept of green revolution is linked to the rapid development of agriculture sector and mordenisation of agriculture in india. It means use of new technology in production so as to incease agriculture output in the short-run. New technology includes use of fertilisers, pesticides and irrigation facilities to increase production per unit of land area i.e. , hectare. The new technology resulted into large increases in agriculture output which later came to be known as GREEN REVOLUTION. The agriculture development in india after 1968 is called as green revolution. Followinf are the components of green revolution: 1. 2. 3. 4. 5. Improved seeds Chemical fertilizers Pesticides Irrigation Mechanization of agriculture

3. PROBLEMS OF INDIAN AGRICULTURE

Agriculture in india has been a way of life for agriculturists through ages. Agriculture has several peculiarities and problems. These are obstacles to the development of agriculture in a number of ways.

The problems can be studied under four heads: 1. Size of land holding 2. Weak economic condition of farmers 3. Inadequate development of irriation 4. Insufficient developent of agriculture infrastructure

1. SIZE OF LAND HOLDING:

The units of cultivation in india are small. 59% of the total number of farmers own farms of less than 1 hectare each. These farmers are often called marginal farmers. The marginal farmers becomes a landless labourer when he is forced by circumstances to sell his farm. 33% of the farmers have small farms and small farms are generally unsuitable for modern technology. Land productivity in india remains low because of the extremely small size of farms belonging to marginal and small farmers. Thus, size of land holding is an obstacle to development of agriculture.

2. WEAK ECONOMIC CONDITION OF FARMER:

A large number of marginal and small farmers do not possess necessary resources to invest in low income agriculture. Since most of their income is spent on consumption, little is left for investment which can boost low saving low production. hence, productivity productivity remains low. The vicious circle of low income- loe saving- low investment low productivity low low investment income- continue. Farmers are often required to borrow from unscrupulous money-lenders or zamindars who charge exhorbitant rates of interest. Therfore, the oft-quoted proverb is: indian farmer is born in debt, lives in debt and dies also in debt. recent changes in agriculture have transformed this picture. However, even during the last few years cases of suisides

by farmers in gujarat, karnataka and andhrapradesh have been reported.

3. INADEQUATE DEVELOPMENT IN IRRIGATION:

There is an element of uncertainty in indian agriculture as in most parts of india, agriculture is still dependent on monsoon. As irrigation facilities are inadequate, it is not possible to adopt multi crop system. These are the cases where the irrigation facilities are available but benefits are not available to farmers on account of social, economic or political reasons. Irrigation is an amportant tool of modern technology which is water-intensive. The big dam projects are completed only after a long time gap, which results in waste of resources and future production.

4. INSUFFICIANT DEVELOPMENT OF AGRICULTURAL

INFRASTUCTURE: There is cosiderable lack of facilities for marketing agricultural products, transportation of products, warehouses and godown for storing surplus production and banking facilities to finance transactions.the farmers lack incentive to increase production in the absence of support services. Farmers are often ignorant about the prevailing market prices in national market for their products. New inventions and changes in technology which improve productivity do not always reach the actual tillers(owner) of land. Thus, the insufficient development of infrastructure becomes a deterrent to agriculture group.

 Slow agriculture growth is a concern for policymaker as some 2/3 of indias people depend on rural employment for living. Current agriculture practices are neither economically nor enviornmentally sustainable and indias yields for many agriculture commodities are low.

Poorly maintained irrigation system and almost universal lack of good extension services are among the factors is constrain. Farmers access to markets is hampered by poor roads, rude market infrastucture, intermediary and excessive regulation.

The low productivity on india is a result of the following factors: Priorities for agriculture and rural development Illitracy, general socio-economic backwardness, slow progress in implementing land reforms and inadequate or inefficient finance and marketing services for farm produce.

Inconsistent GOVT. policies, agriculture subsidies and taxes often changed without notice for shortterm political ends. The average sizw of land holdings is very small and is subject to fragmentation due to land ceiling acts, and in some cases, family disputes.

 Such small holdings are often oven-manned, resulting in disguised unemployment and low production of labour.

Adoption of modern agriculture practices and use of technology is inadequate, hampered by ignorance of such practises, high costs and impracticality in the case of small land holdings. Irrigation facilities areinadequate, as revealed by the fact that only 52.6% of the land was irrigated in 2003-04.

4. CHALLENGES TO AGRICULTURE SECTOR

The big challenges facing indian agriculture is the maintenance of high growthrate og agriculture productionin the longrun. Green revolution has raised the growthrate of agriculture production but gradually it is becoming stagnant. The benefits of green revolution have failed to reach the marginal and small farmers. The agriculture in india has to face the following challenges: 1. Urbanisation: Urbanisation leads to reduction in land available for cultivation and increasing production. The demand for foodgrains is increasing as the population and incomes of the people are rising. 2. Enviornmental degradation: The inceasing use of fertilisers and pesticides adversely influence the quality of soil and creates health problem for the people. Excessive use of water creates problems of water-logging and salinity of land. Forests are being destroyed to increase land area under cultivation. This has injured birds and animals and other organisma which are helpful to human existence. 3. Globalisation: Indian agriculture faces a big challenge of raising productivity and quality of agricultural products if it has to be competitive in global markets. If it fails, the problem of poverty in india will become more accute.

5 REFORMS IN AGRICULTURE SECTOR

The benefit of green revolution were consequently appropriated by medium and big landlords who had more land of their own. it was therefore necessary to bring about qualitative changes in the institutional sructure of agriculture in india . The following measures werw implemented by the government : 1. Land reformers: The britisers had introduced zamindari system in india under which zamindars who owned land gave it for cultivation to tanents. Tanents were charged high rents some times exceeding 50% of the production. The actual tillers of the land and landless laborers were exploited by the zamindars. In order to increase agri. Productivities and provide incentives to the farmers, various land reformers were introdused by the GOVT. after independence. Evaluation: The objectives of the land reformers were: 1. To abolish zamindari system 2. To give ownership right to the actual tiller i.e. , land to the tiller 3. To reduce economic inequality in rural area 4. To improve agricultural productivity and increase productivity

2. Agricultural credit: The need for providing necessary credit to the agriculturists has increased after the green revolution . the GOVT has established cooperative banks, co-operative societies and rural banks to the short term requirement of loans and advances to the farmers so that they cav take the advantage of modern technology to increase production. 3. Agricultural marketing: The govt has set up chains of godowns and warehouses for storage of agricultural products. It has also created regulated market to insure fair and equitable prices to the producers. the development of transport and communication facilities and the setting up of cooperative marketing society have helped the farmers in marketing their products. The efforts by the GOVT and the co-operative institutions in this direction are continuing.

6.IMPROVEMENTS
Following improvement in such area should be done to improve the agriculture sector: AWARENESS: LITERACY: - as education is very essential for every person to develop oneself and it also keep away the person from cheating. PROPER IRRIGATION SYSTEM: PROVIDE AGRICULURE KNOWLEDGE TO ILLITERATE FARMER: IMPROVEMENT IN INFRASTRUCTURE FACILITY: - water supply, proper roads, electricity, communication channel REMOVE BACKWARDNESS: ADOPTION OF NEW TECHNOLOGY: ADOPTION OF HYBRID SEEDS:

AGRICULTURAL RAW MATERIAL AT REASONABLE RATE:

 INTRODUCE NEW SUBSIDY PLANS TO PROMOTE AGRICULTURE: PROMOTE INNOVATION THROUGH RESEARCH AND DEVELOPMENT: LIBERAL GOVT. POLICY: The govt. policies should be libral so that the farmers can obey that so, the curruption can be avoided for the sector. PROVISION OF LOAN AT LOWER RATE OF INTEREST: Here it can be menntioned that the loan is blessing for traders if it is lower rated interest. Loan is the way by which a trader can adopt the modern technology and can improve the standard of business as well. PROMOTE THE EMPLOYMENT TO AGRICULTURE SECTOR: - To promote agriculture as the best option and try to reduce the burdon of secondary and service sector REMOVAL OF ZAMINDARI SYSTEM: - To promote tillers who are the actual cultivatior rather than actual owner. - Remove the zamindari system from the root because in of the part of country it is still prevailing. most

 PROVIDE SUFFICIENT LAND TO CULTIVATORS: - To promote the technological changes. IMPROVE IMPORT EXPORT POLICY: - To promote globalization of agriculture sector. PROPER PLANNING FOR URBANIZATION: - For e.g. it is good for the aspect of the development but by minimizing the farms, new roads are constructed so it is not beneficial for farmers as well as for GOVT. also. IMPROVING AGRICULTURE WATER MANAGEMENT - As water is very basic need for the cultivation or farming, the crises are noted in supply of water. Almost farmers are dependend on monsoon or raining water it is necessary to expand irrigation or water supply management. IMPROVING TECHNOLOGIES FOR SUSTAINABLE RESOURCE MANAGEMENT: - To accelerate the intermediary business like wise; godown, warehouse, or the technology which make the crop apart from the wastage for longer period.

 ADAPTING LABOR REGULATIONS TO THE CONDITION OF FARM AND RURAL EMPLOYMENT: The mean of policies the labor code should be to benefit workers, especially the poor and to generate more employment, whether formal or informal, for the less skilled. As the secondary aim, labour regulations should be consistent which incorporating a larger share of workers into the formal sectors, which provides better worker protection, a pension, and health security;improves connections to credit markets. CONTROLLING CURRUPTION IN AGRICULTURE: - Curruption can blunt the agriculturefor-development. Land administarion is often one of the most currupt govt. agencies. Large agricultural infrastructure projects such as those for irrigations, are also prons to curruption, as is water allocation in public irrigation systems. - The more the state is involved in supplying inputs such as fertilizers and credit, in marketing agricultural products the greater potential for curruption. New technologies, aspecially (e-GOVT), can reduces the scope for currruption as with computerising land records. DECENTRALIZATION SYSTEM SHOULD BE ADOPTED: It has two types: - Intensive farming: If there is multiple croping on the same piece of land by appling more labor and capital, using modern technology and taking advantages of institutional factors, is called incentive farming. In this case, total production increases due to increase inputs, land

remaining fixed. Fertilisers, pesticides and water are the inputs which are applied to the fixed amount of land. - Extensive farming: New land is brought under cultivation so that total land area under cultivation is increase in order to achive higher level of production. This type of farming is known as extensive farming. Both intensive and extensive farming have greatly contributed to increase agricultural production. PROVIDING HELP CENTRES AND TOLL FREE CALL SYSTEM: - To provide 24*7 means whole time guidence regarding agriculture AGRICUTURE TRANSFORMATION SHOULD BE ADOPTED: - agriculture for indian farmer is a way of life rather than an occupation. Producing the market and earning profit are not a goal of agricultural activity. When agriculture becomes an occupation and the farmers aim is to produce for the market and earn profit, there is transformation of agriculture once agriculture is transformed, efforts are made to produce more, increase productivity and market the surplus of profit.

6. CONCLUSION
From the data we can conclude that, the evidence is compelling on the potential for regenerating the rural economy by accelerating agriculture and rural development. This is not just for the sake of developing agriculture. Actively tapping agricultural and rural-based opportunities is a critical component of an inclusive growth strategy. Along with the price policy changes of the 1990s emerge the substantial policy agenda for further improving incentives, institutions, and infrastructure. There is no silver bullet for reforms in any one or all markets, and the interconnectedness of individual reforms needs to be considered. By viewing individual reforms as part of a whole, a more realistic assessment can be made of the adjustment process and needs for financing. Currently stagnant public sector expenditure cannot meet the financing needs for rural infrastructure development and rural public service provision. Budget reprioritization and service efficiency improvements need to be urgently addressed. Past public support has fallen prey to wasteful transfers, undermining inclusive growth prospects. Accelerating and sustaining the regions impressive overall growth depends on accelerating agriculture and rural development efforts for inclusive growth.

7.BIBLIOGRAPHY

BOOKS:
GSEBS TEXTBOOK OF ECONOMICS B.S.SHAH OF ECONOMICS MACRO ECONOMICS AGRICULTURE FOR DEVELOPMENT 2008 WORLD DEVELOPMENT REPORT 2008 INDIAN ECONOME BY RUPA KAPILA INDIAN ECONOMY REVIEW

WEBSITES:
Wikipedia.org

Siteresources.worldbank.org www.worldbank.org agricoop.nic.in