Agriculture scenario in India India’s economy has been predominantly an agriculture-based economy, providing employment to more than 60% of the total workforce of the country. The agricultural sector is contributing around 18% to India’s GDP. However, the sector’s growth indicating a declining trend for the last one decade. During 2005-06, its growth rate was 5.2, it was 3.7 during 2006-7, 4.7 in 2007-08 it drastically fell down to 1.6 during 2008-09 and it registered a negative growth rate of -0.2 during 2009-10. In any developed/developing economy agricultural growth rate tend to decline in the process of development. But this tendency is not a welcome trend in a country like India where more than 60% of its total work force is employed. Nobody can ignore it. But the policies of the government are not encouraging.

In India 68 percent of total net sown area (136.8m.ha) comes under rain fed lands spread over 177 districts. Rain fed crops account for 48 percent area under food crops and 68 percent of the area under non-food crops. These figures show how the uncertainty is ruling the most important sector of India’s economy considering the uncertainty of monsoons.

Population of the country already crossed 100 crores at the same time cultivable land is diminishing due to urbanization, industrialization and allocation of land for SEZs. According to the statistics available, India is placed at 90th place as per the yield per hectare with 2,366.7 kg/ha much behind our neighbouring countries Pakistan which occupied the place at 80, with 2562.8 kg/ha and with 3,551 kg/ha, Bangladesh placed at 43. If the situation continues, the country going to face the famine conditions, in such a situation, the country need to spend lakhs of crores to feed its huge population. Is this wise for a country to depend on imports for food grains to feed its people?

Agriculture in Budget -2010

As usual, there is no stimulus plan from the Govt. in the budget to get back the Agriculture sector on to the track. No promise for providing the farmers the required quantity and quality of seeds, quantity of fertilizers, hassle free loans from the banks, insurance plans for the crops, creating markets for the produce etc. Except for some routine measures, the Government has nothing for the farmers in the budget. The Government would have spelled some innovative initiatives to renovate the sector.

Cooperative farming – the future promise

The major problem facing the agriculture sector is small holdings. Though technology is available, this could not be implemented properly because of small holdings. Cooperative farming will be the best answer to the problem. I

n cooperative farming, all small holdings will be merged into one by breaking the bunds in between duly surveying the land before hand and pro-rata ownership given to all the farmers. Of course, it is not that easy to take the farmers into confidence. Political will is required for this. A pilot programme on cooperative farming has to be taken up to instill the confidence in the farmers. Benefits of technology viz., drip irrigation, make use of mechanized farming utilities etc. can be fruitfully implemented and the yield per hectare can be improved. Since it is a cooperative effort, getting loans, seeds and fertilizers may not be a problem. Farmers those who are not financially sound in these cooperative societes, will contribute their labour and finally, benefits will be shared on pro-rata basis. Marketing the final produce is one other problem for the farmers; Govt. shall honestly take measures for providing these facilities.

India on the global economy

Inflation rates in India touched the lowest ever while the prices of essential commodities soaring. As per the latest statistics, India occupied the position of 4th largest economy after USA, China and Japan in the world according to Purchasing Power Parity (with the help of its lowest inflation rates). But, still there are tens of thousands of people who do not have shelter and bread to eat atleast once in a day in this country. This is what the gimmick of WPI, the official barometer chosen by India to weigh its inflation while most of the major economies like US, UK, Japan, France, Singapore and even our arch rival China have selected CPI as its official barometer.

Ignoring agriculture, the major sector of India’s economy, how the two digit growth rate can be possible as is being dreamt, even if it is, can we say it is development. Gimmicks may not work for so long for the sustained growth and development. Partial development can not make a country stronger. All round development is the need of the day.


Article by
Srinivas Suravajhala