Agriculture sector of India
Agriculture is the dominant sector of Indian economy, which determines the growth and
sustainability. About 58% 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.
Agriculture is the mainstay of the majority of the population in India. Extremes in climate
and a variety of soil conditions have made possible the cultivation of almost every item from
cash crops to food grains. India's growth in per capita food production during 1979-92 was
about 1.6% per annum, which is the highest growth rate in the world during this period.
Agriculture provides livelihood to about 65% of the labour force, contributes nearly 29% to
the Gross Domestic Product (GDP) and accounts for 8.56% of India's exports. In terms of
gross fertilizer consumption, India ranks 4th in the world, after the USA, the erstwhile USSR
and China. India has the largest area in the world under pulse crops and is also the first in the
world to evolve a cotton hybrid.
About 43 % of India's geographical area is used for agricultural activity. With the spread of
irrigation facilities, the introduction of high yielding variety of seeds and farm mechanization,
the vulnerability of the Indian agricultural sector to the vagaries of the monsoons has
declined, compared to earlier.
In a span of 3 decades, India become 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.
According to:( CII & think quest atical )
According to the PARLIAMENT LIBRARY AND REFERENCE, RESEARCH, DOCUMENTATION
AND INFORMATION SERVICE (LARRDIS) In the advance estimate of GDP for 2012-13, the
CSO had pegged farm growth at a three-year low of 1.8 per cent against last year's 3.6 per
cent. Production of foodgrain is expected to decline by 2.8 per cent as compared to the
growth of 5.2 per cent in the previous year.
According to the 2nd Advance Estimates of Production of foodgrains for 2012-13, estimated
foodgrain production in the 2012-13 crop marketing year (beginning June) is 250.14 million
tonnes (mt), a little over nine mt less than last year owing to erratic monsoon in many parts of
The output of all crops, barring pulses and mustard, is expected to be less than last year.
Production of wheat in the ongoing rabi sowing season is expected to be 92.3 mt from 94.88
mt in last year. Production of rice, mainly grown during the kharif sowing season, is
estimated to be 101.8 mt from 105.31 mt in last year Coarse cereals' production in 2012-13 at
38.5 mt, as against 42 mt last year. Production of protein-rich food crops such as pulses is
estimated to be better this year, especially that of gram. Production of all pulses this year is
estimated to be 17.6 mt, about 0.5 mt more than last year. Oilseed production is expected at
29.5 mt, marginally less than last year's 29.8 mt.
Among cash crops, production of cotton this year is expected to 33.8 million bales (a bale is
170 kg), about 1.40 mb less than last year. Sugarcane is expected to be 334.5 mt from 361.03
mt in last year. Jute is pegged at 11.13 million bales (a bale is 180 kg) in 2012-13, down from
11.4 million bales last year.
Growth rate of Indian agriculture sector
Improvement in performance of agriculture and manufacturing sectors is expected to push the
economic growth rate to 6.4% in 2013-14 from 5% in the previous fiscal.
"Economy will grow at higher rate from now. The govt. projected growth rate of 6.4% in the
current fiscal", According to Prime Minister's Economic Advisory Council (PMEAC)
Economic growth rate had slipped to decade's low of 5% in 2012-13 mainly on account of the
impact of the global financial woes.
by according to (PMEAC) hoped that the GDP estimate for 2012-13 would be revised
upwards from 5% estimated by the Central Statistical Organisation (CSO).
The improvement in the growth rate in the current fiscal, he said, would mainly be on account
of better performance of agriculture, industry and services sectors.
The agriculture sector was likely to grow at 3.5% compared to 1.8% in the previous fiscal. In
case of industry and services sectors, the growth rates have been projected at 4.9% (3.1% in
2012-13) and 7.7% (6.6%), respectively.
On the spiralling current account deficit (CAD), according to (PMEAC) it is likely to come
down to 4.7% of the GDP in 2013-14 from about 5.1% in the previous fiscal.
The CAD, which is the difference between inflow and outflow of foreign exchange, shot up
to an historic high of 6.7% of the GDP for the quarter ended December 2012.
According to : (Business Standard news report)
Table 1: Trend GDP growth rates in India (%)
Mining & quarrying
Electricity, gas & water
Trade, hotels, transport &
Financing, insurance, real
estate & business services
Community, social &
GDP at factor cost
Source: CSO & FICCI Research
Growth Drivers of Indian agriculture sector :
Growth in Organized Retail
In india there is many organised retail sector which is help to sale the agricultural product.
Example- Reliance fresh, vishal, etc
Shift towards horticultural crops
Govt. Of india given many types of incentive to growth of argi. sector like – low
interest lone, chef seeds etc.
Agri. Sector is a growing sector so that there many investor are attract for it so that
many investment drive the growth of this sector like – Govt. And privet investment
Government policy initiatives
Year –on –year changing attractive Govt. Policy for the growth agri. Sector is drive
the growth for it
Higher yields and increasing profits
Private sector participation
Shift to nutrient based subsidy
Increasing use of other fertilizers
MRP and price decontrol
Low penetration per hectare
Availability of credit
Low penetration of tractors
Low farm availability
Opportunity in the new markets and products
Increasing consumer spend on processed foods
India’s competitive edge
Growing food retailing in India
Growth in food processing exports
Growth in terminal markets
Low level of penetration in domestic market
Increasing health consciousness of the people
Huge export market
Increasing organized retail
According to : (Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes”)
Recent happening in Indian agriculture sector:
Govt. Policy towards Agriculture sector :
The National Policy on Agriculture seeks to actualise the vast untapped growth potential of
Indian agriculture, strengthen rural infrastructure to support faster agricultural development,
promote value addition, accelerate the growth of agro business, create employment in rural
areas, secure a fair standard of living for the farmers and agricultural workers and their
families, discourage migration to urban areas and face the challenges arising out of economic
liberalization and globalisation. Over the next two decades, it aims to attain:
The salient features of the new agricultural policy are:
Over 4 per cent annual growth rate aimed over next two decades..
Greater private sector participation through contract farming.
Price protection for farmers.
National agricultural insurance scheme to be launched.
Dismantling of restrictions on movement of agricultural commodities throughout the
6. Rational utilisation of country's water resources for optimum use of irrigation
7. High priority to development of animal husbandry, poultry, dairy and aquaculture.
8. Capital inflow and assured markets for crop production.
9. Exemption from payment of capital gains tax on compulsory acquisition of
10. Minimise fluctuations in commodity prices.
11. Continuous monitoring of international prices.
12. Plant varieties to be protected through a legislation.
13. Adequate and timely supply of quality inputs to farmers.
14. High priority to rural electrification.
15. Setting up of agro-processing units and creation of off-farm employment in rural
Market size of Indian agriculture sector:
According to indian mirror report The total planned expenditure for the Department of
Agriculture and Cooperation in India has increased by 18 per cent from Rs 17,123 crore (US$
3.18 billion) in 2011-12 to Rs 20,208 crore (US$ 3.75 billion) in 2012-13.
The outlay for Rashtriya Krishi Vikas Yojana (RKVY) was being increased from Rs 7,860
crore (US$ 1.46 billion) in 2011-12 to Rs 9,217 crore (US$ 1.71 billion) in 2012-13.
Further, an amount of Rs 1,000 crore (US$ 185.53 million) has been allocated for “Bringing
Green Revolution to Eastern India (BGREI)” initiative, compared to Rs 400 crore (US$ 74.22
million) in 2011-12.
Allocation to the Department of Agriculture and Cooperation has increased considerably
from Rs 5560 crore (US$ 1.03 billion) in 2007-08 to Rs 20,208 crore (US$ 3.75 billion) in
2012-13 facilitating more investment in the sector. India's agricultural growth for the period
of 2012-13 was positive, largely on the back of normal monsoon. The Gross Domestic
Product (GDP) growth in the agricultural sector is forecast at 3% for coming year, according
to the National Council of Applied Economic Research (NCAER). India's agricultural growth
for the past three has remained in the positive regime and it is expected to continue for the
coming years too.
The annual agriculture target for the financial year 2012-13 has been fixed at Rs 5,75,000
crore (US$ 106.69 billion) against the target of Rs 4,75,000 crore (US$ 88.13 billion) in
Agriculture sector of india current scenario is facing a lot of challenges. It is important to
have food security through a transformation of Indian agriculture. There are some challenges
which are abstract in the way of growth, six major problem such as :
(a) Population Pressure
India has a huge population of over one billion and it is increasing at a very fast rate.
density of population is 324 persons per sq. km. This is likely to increase further in
future. This has created great demand for land. Every bit of land has been brought
under the plough. Even the hill slopes have been cut into terraces for cultivation.
(b) Small and Fragmented Land Holdings
The pressure of increasing population and the practice of dividing land equally among
the heirs has caused excessive sub divisions of farm holdings. Consequently, the
holdings are small and fragmented. The small size of holdings makes farming activity
uneconomical and leads to social tension, violence and discontentment.
(c) Inadequate Irrigation Facilities
By and large the irrigation facilities available in India are far from adequate. So for
half of the total area under food crops has been brought under irrigation and the
remaining half is left to the mercy of monsoon rains which are erratic in time and
(d) Depleted Soils
Indian soils have been used for growing crops for thousands of years which have
resulted in the depletion of soil fertility. With deforestation the sources of maintaining
natural fertility of soil has been drying out. Lack of material resources and ignorance
of scientific knowledge have further depleted the soils of the natural fertility. Earlier
only animal waste was enough to maintain soil fertility.
(e) Storage of food grains
Storage of food grains is a big problem. Nearly 10 per cent of our harvest goes waste
every year in the absence of proper storage facilities. This colossal wastage can be
avoided by developing scientific ware-housing facilities. The government has taken
several steps to provide storage facilities.
(f) Farm Implements
Although some mechanisation of farming has taken place in some parts of the
country, most of the farmers are poor and do not have enough resources to purchase
modern farm implements and tools. This hampers the development of agriculture.
According to : (preserve articles)
There are some other abstract in the agriculture sector :
• Shrinking land resources
Many industry, road ways, railway tracks ,Airport ,and more then 50% people stay in city
those are the main cause of shrinking land resources.
• Climate change
Climate change is play important role in Indian agriculture sector ,the Indian firming sector
most depend on monsoon.
• Declining Water resources
The dramatic role of monsoon in Indian agriculture sector
• Demand for Organic Farming
People are more census about health and food so, they demand more healthy food which
have more nutrition and less use of pesticides
• Shortages of Plant Nutrients
In Indian agriculture sector the firmer are not given require nutrients to the plants so that
excepted production is not achievable .
• High cost of Inputs
In agriculture more investment are needed on the time of cultivation in seeds and fertilizer
• Inadequate credit availability
Indian agriculture sector are face the situation of insufficient of credit.
• High Energy costs
The agriculture sector consume more energy like Diesel, Electricity for farming and water
• Soil health problem
In india continuous one type of firming is done in field so that the health of soil day by day.
• Negative Thinking
The agriculture sector most affected NT is poison, PT is nectar ,Smooth road never makes
good drivers, “WHY ME” INSTEAD “TRY ME”, Iron will power, firm determination
• Scope of Food production exists
• Adoption of BMP,IPM,IDM,INM
• Adoption of Farming System
• OF in Selected Crops and Areas
• Contract Farming
• Precision Farming
• Corporate & Co-operate Farming
• Use of Non traditional energy
• Nutrient Fortified crop Plants
• Use of Genetic Engineering
• Use of Information Tech
• Urban Agriculture
• Paying farmers for ES
According to: (The Fertiliser Association of India New Delhi)