Indian Agricultural Growth - Issues of productivity, institutions and domestic policies Surabhi Mittal ICRIERPresented at Multi-country Research Dialogue of emerging economies organised by ICRIER and IDRC on April12-13, 2010 at New Delhi.
Key FeaturesHigh concentration of population in agricultureDeclining contribution of agriculture to GDPAgricultural output growth is highly volatileOverall, marginalization of agriculture sector
Productivity trends and sources of growth Trends • TFP growth show that the technological gains of early years of GR have exhausted • Diminishing returns to input use • Crops show stagnant and negative growth in TFP Sources of growth • Research and Extension • HYV’s • Literacy • Markets • Electrification • Irrigation
Agricultural Institutions• Land ceiling and • Inspite of • Improved tenancy government extension with structure is a initiatives, the involvement of constraint to reach ability of private sector adoption of credit and has helped in technology and insurance is not increasing yields increasing satisfactory. and income. productivityLand Credit and AgricultureReforms Insurance Extension
Agricultural Policies Food management Short term subsidization The inefficient price policies are catering to is dearer to policy makers support system act as only PDS and not able to than benefits from longdisincentive to producers efficiently manage market term investments in the prices sectorInfrastructure Policies- Government Food• Road security policies are New seed technology is in• Electrification suffering from issues of dilemma• Irrigation poor targeting and high administrative costs• ITC Agriculture Market Policies- suffer from delayed implementation and legislative issues • Agricultural Produce Marketing Act • Future trading • Contract Framing
Answers are sought for? BesidesDo we have the Do we have the government technologies political what role canand policies to willingness and other stake motivate economic holders play to increased environment to make the sector productivity? do so? grow?