2. An increase in agricultural production can
result from an increase in area under
cultivation (horizontal expansion) and /or
from an increase in the productivity
(vertical expansion). Productivity has two
aspects to it, viz.,
land productivity and labour productivity.
4. Measures to improve agricultural productivity
1.Irrigation potential
• It has been increased through public funding & assisting
farmers to create potential on their own farms. The total
irrigation potential in the country has increased from 81.1
million hectares in 1991-92 to 102.8 million hectares in
2006-07.
• only 73.5 % irrigation potential has been created out of
which 87.2 million hectares(84.9 %) is actually utilized.
The scope of expanding irrigation through large &
medium scale project has yet to be fully exploited.
5. 2.Diversification of agriculture
• Diversification of agriculture to horticulture & other
areas is also high on the govt agenda. Besides raising
farmer's income ,this results in better utilization of
resources, creation of employment & growth.
• National Horticulture Mission & Mission for Horticulture
in the north east & other hilly areas have been set up to
promote horticulture in a mission mode.
6. 3.Exploiting production potential :
• To achieve expected level of productivity, farmer
must be guided by experts in respect of soil & water analysis
for adopting the best diversified cropping system ,meticulous
adoption of technology (when & how), judicious use of
seeds,fertilisers,pesticides,water,labour & credit.
• supply of inputs must be of standard quality, reasonable
priced & timely available. There is need to establish farm
inputs & equipment regulatory & development authority.
7. 4.Rural infrastructure for farm growth:
• there is a positive correlation between
infrastructure development & aggregate agricultural
productivity.
• rural infrastructure as irrigation water shed
development, rural electrification ,roads,markets,credit
institution rural literacy ,agriculture research & extension
etc together plays key role in determining output in
India.
8. 5.Tecnology application:
• Technology enables the branch to go where the
customer is present.
• It helps in reducing operating cost of providing banking
services in rural areas & to low income groups.
• National agriculture policy lays emphasis on the rapid
development of agriculture in India.
• DAC (dept of agricultural & cooperation )has developed
four portals & 40 websites i.e.
DACNET,AGMARKNET,DAC & AgRIS.
9. 6. Capital formation in agriculture:
• Productivity in agriculture is also dependent on capital
formation both from public & private sectors.
• Gross capital formation in agriculture relative to GDP in
this sector has shown an improvement from 9.6% in
2000-01 to 12.5% in 2006-07.but it should be raised to
14 % to achieve a growth of 4% in this sector.
10. 7. Crop Insurance
• Productivity in agriculture also depends on various
external factors like monsoons ,pests ,diseases ,drought
& other natural calamities .So crops need to be covered
under insurance to provide financial support to farmers.
• For this we have NATIONAL AGRICULTURE
INSURANCE SCHEME.
11. 8. BETTER QUALITY SEEDS:
• The seed should have the characteristic like better grain
quality, resistance to pests & diseases & suitability
to the agro-climatic conditions & quality of high rate of
germination & high yielding.
• So we have National Seed Policy 2002 provides the
framework for growth of the seed sector.
