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  2. 2. PROBLEMS IN INDIAN AGRICULTURE TODAY Agriculture employs 70% of the country’s work force but only contributes to 13% of the GDP. Agricultural growth not in sync with population growth. Farmers of India are the poorest of any country of the world. Storage capacity less than production capacity. Very less use of technology. Use of harmful pesticides takes a toll on people’s health. Excessive and uncontrolled use of toxic, harmful fertilizers takes away all nutrients of soil and make them unproductive. India is way behind many countries in per capita production.
  3. 3. India spends more money in services than the agricultural sector. The primary sector of economy needs to be developed fast. The low productivity in India is a result of small size of land holdings (less than 2 hectares) and is subject to fragmentation due to land ceiling acts, family feuds etc. This gives them small margins of income. Scarcity of agricultural products like fertilizers and pesticides. High rate of soil erosion and soil degradation Lack of infrastructure like water availability, canals, etc. 60% of cultivated area is rain fed as only 40% of area is under irrigation 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. Problems arising due to dependence on climate: results of climate change
  4. 4. Agriculture in India being a huge industry, requires a multi-pronged approach of reformation 1) Land reforms and distribution of land To do away with problems of small holdings, people in a particular region can be arranged such that they must cultivate a particular type of crop in co-operation with one another by forming a co-operative society. Lets call it the village model. Under this model, farmers of a village will sit down and discuss with experts to decide which crop to be cultivated, or which crop will be most beneficial. All farmers of the village work in co-operation in all fields of the village. Tilling material, fertilizers, pesticides, chemicals and other logistics are brought by the village co-operative and not by a single individual . The share of each farmer is the proportion of his/her land with respect to total land under the co-operative. 2) The Co-Operative The village or regional farmers together form the co-operative. The co-operative collect money from all members and buy logistics with them. Logistics belongs to the co-operative. All fields belonging to the members of the co-operative are assumed as fields of the co- operative. Farmers work on all the fields sharing their work among themselves. Total profit of co-operative shared among member farmers in ratio of land possession. They tell the authorities amount of required fertilizers or pesticides. The agro- department then arrange for the same.
  5. 5. 3) An organization to help farmers A state controlled or centre controlled AGRO-DEPARTMENT to be set-up in each village or district. It will consist of scientists, experts, students of agriculture, or industry personnel. AGRO-DEPARTMENT tasked to look after the co-operatives and guide them in deciding which crop to produce, amount of fertilizer and pesticide, brand of the chemicals to be used, irrigation methods and all other aspects related to agriculture. The department should have soil testing machines, and other gadgets to help farmers in everyday use. AGRO-DEPARTMENT to be linked with all state and central agricultural research institutes forming a network. National research institutes State research institutes Village Agro- Department National Agro- department
  6. 6. 4) Direct private investment of agro-industries Agro-based industries to play a huge role in the system. An agro industry e.g. a juice company, can be leased off areas or villages, where they will engage local farmers to grow their desired crops by apply their own techniques. They will have to invest for their required irrigation or other arrangements. They will process the produce in their factories and make desired products. They will pay the farmers working under them salary each month as per industry standards. They will pay the government land lease fees and taxes on the land, sell of manufactured products. A system of mutual benefit for the village, industry, and government. It is also a system of sustainable development. The R&D of the industry can use superior techniques of growing crops which is will provide more know-how to farmers. The villagers can also be share holders of the company. The allied industries growing will lead to development of the region. Industry FarmersSalary / shares Government Taxes INCOME FROM GOODS SELL GOODS
  7. 7. 5) Engage agro-tech industries  Agro-tech industries like tractor manufacturers, etc can be directly bonded to the farmers via the agro-department. The Agro-tech industries can teach the farmers how to use the machines. The Agro-tech industries can lease or sell the machines to the farmers or co- operatives in installment. They can help in repairs and service from time to time. They can teach farmers better irrigation techniques, farming processes, etc. Farmers get to use modern technologies and industries get to sell their products. This encourages both agriculture and industry. 6) Irrigation projects Dependency on rainfall must be minimized in next 10 years. Changes in climate have adverse effects on produce and soil texture.  we have numerous rivers yet much less dams as compared to US and China. Numerous dams need to be set-up and canals built to irrigate fertile and barren lands alike. The government may lease out projects to private companies and in return give them shares from the produce of the co-operative systems their projects are benefiting, for some years.
  8. 8. 7) Research Institutes Carry out research on all aspects of agriculture. Develop BT-crops. Study effects of fertilizers and pesticides on soil. Study effect of fertilizers and pesticides on humans after consuming foods. Decide composition of fertilizers and pesticides . Approve brands of fertilizers to be used and disapprove harmful brands. Encourage research. Bring experts from different parts of country or abroad as and when required. Keep up-to date with trends of agriculture science and keep knowledge of farming and practices abroad. Ask governments for grants for research and development projects. Advice government on induction of varieties of BT-crops. 2)Encouraging research The government must drain huge amounts of money in research or development projects. It can fund its own institutions and encourage research or it can donate money to private companies to carry out some research or project for the government. The government can allow institutions direct access to farmers and help them to carry out experiments on their own. The government should encourage bio-technically modified crop research and time and again conduct experiments with them. There should be a expert panel in central government in place including best scientists in the field from the country and abroad who will review the BT-crops and advice the government whether they can be grown or not.
  9. 9. 8) Fertilizer and pesticide companies Agro-departments to assess the required amount of fertilizers and pesticides in each region/co-operative. Based on the assessed figures, orders are placed to companies for required amounts. Deals done ensuring time bound delivery of goods. 9) Post production Increase capacity of store houses and godowns to meet countries’ production rate and always keep some buffer stock waiting. Government will eventually buy the produce from farmers at a certain price. Then they are moved around by traders to the beneficiaries. The huge amount of food grains received all over the nation, distributed, and surplus can be exported at higher rates. Another innovative approach is what is known as “FARMER MALL” already applied in Gujarat. Here the middlemen or traders are removed and farmers actually sell their produce themselves in local markets or malls. The farmers sell at higher price than they used to and consumers buy at lower price than they used to. The government may chip in a negligible percentage of tax in the process. The huge nationwide regular transactions will actually be a huge source of revenue.
  10. 10. MERITS Problem of uneconomic small land tracts done away with by replacing it with the co- operative system or village model. Production will show marked increase. With increase in production, or while working under industry, farmers will get better wages hence and hence improved standards of living. New technologies encouraged by presence of agro-tech companies. Quality and quantity of fertilizers and pesticides monitored. Research will increase productivity in numerous ways. Competition between different research institutes will increase quality of research. Agriculture will be carried out scientifically due to presence of agro- department .
  11. 11. CHALLENGES AND MITIGATION Some farmers may not want to join the model: in such cases they need to be made aware of the system’s positive points and try to induct them into the system. Difference of opinion among farmers on what to grow. Lack of communication between different research institutes.  Some farmers may not want to join industry. In that case, the industry may carry on with willing farmers only. Government need to lay down laws pertaining to working hours, minimum salary etc to protect farmers from being exploited by the industries. All farmers may not be able to habituate themselves to the new technologies suddenly. They need to be given short term trainings for the same.
  12. 12. REFERENCES Wikipedia Challenges faced by the Agriculture Sector in Developing Countries with special reference to India, Nidhi Dwivedy Agricultural Productivity Trends in India: Sustainability Issues Praduman Kumar and Surabhi Mittal Forbes India: Gujarat's potato farmers tie up with MNCs to script success story! Potential of Biopesticide in Indian Agriculture vis-a-vis Rural Improving agricultural productivity is crucial - The Economic Times The Times of India: 06/surat/30481603_1_farmer-leader-farmers-malls-cost-of-agricultural-inputs India: Issues and Priorities for Agriculture World bank files THANK YOU