India should focus on agriculture

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India should focus on agriculture

  1. 2. India's focus going forward: Agriculture or manufacturing and services -Sriram Vangara (07927849) -Arijit Majumdar (07927865)
  2. 3. WHY AGRICULTURE?
  3. 4. EMPLOYMENT FOR MASSES
  4. 5. Employment for masses <ul><li>Agriculture currently employs 60% of the country's population. </li></ul><ul><li>Natural advantages India possesses </li></ul>42.0 53.2 2001 46.0 57.8 1991 Agriculture Population as % of Total Population 11.7 57.1 2001 11.5 57.0 1991 Agriculture Land as % of Total Land World India Year Indicator
  5. 6. <ul><li>FOOD SECURITY </li></ul>
  6. 7. Food security <ul><li>Effects of the green revolution are drying out </li></ul><ul><li>The ministry of agriculture estimates that within next five years, India will be short of 20 million tonnes wheat, rice and pulses </li></ul><ul><li>Wheat </li></ul><ul><li>- India currently grows 67 kilograms of wheat per person annually </li></ul><ul><li>- India’s per capita wheat consumption is nudging 73 kg and is on the upswing . </li></ul>
  7. 8. Food security <ul><li>Over the period 1990-91 to 2000-01 </li></ul><ul><li>- the growth rate of foodgrain production dropped to 1.66 per cent per annum(from 2.5 percent) </li></ul><ul><li>- population growth rate over the same period - 1.9 per cent </li></ul>
  8. 9. Food security
  9. 10. <ul><li>INFLATION </li></ul>
  10. 11. Inflation <ul><li>Foodgrains’ price is one of the major contributor to Inflation ,along with oil in the Indian economy </li></ul><ul><li>Inflation due to foodgrains’ price hits poor the most </li></ul><ul><li>Often Inflation due to increase in food prices have caused electoral losses to the ruling party. </li></ul>
  11. 12. Inflation 2.6 -19 2002-03 8.2 -2.1 -19 1987-88 5.8 -4.7 -13 1986-87 4.9 -2.8 -14 1982-83 17.1 -16.8 -19 1979-80 25.2 -4.6 -12 1974-75 10.0 -7.7 -24 1972-73 Avg inflation % change foodgrain production Rainfall % departure from normal Years of poor rainfall Years of poor rainfall and effect on Inflation
  12. 13. Food and general inflation <ul><li>On a whole price inflation has been more marked for food items than for all commodities </li></ul>
  13. 14. RAW MATERIAL
  14. 15. Raw material <ul><li>Sugar industry </li></ul><ul><li>Vegetable Oils </li></ul><ul><li>Textiles </li></ul><ul><li>Medicinal plants </li></ul><ul><li>Biofuel industry </li></ul><ul><li>Fruit and vegetable pulp </li></ul><ul><li>Besides industries like fertilizers ,herbicides, </li></ul><ul><li>Insecticides, tractors depend totally on agriculture for their sustenance. </li></ul>
  15. 16. CONSUMPTION POWER
  16. 17. Reasons at a glance … <ul><li>Provides employment to 3/5 th of the population </li></ul><ul><li>food security </li></ul><ul><li>inflation </li></ul><ul><li>raw material to industries </li></ul><ul><li>security net in rural areas </li></ul><ul><li>population pressure-food + employment </li></ul><ul><li>purchasing power </li></ul>
  17. 18. Major problems faced by Indian agriculture <ul><li>Low productivity </li></ul><ul><li>Irrigation </li></ul><ul><li>Lack of storage facilities </li></ul><ul><li>Transportation </li></ul><ul><li>Water supply </li></ul><ul><li>Decreasing farm sizes </li></ul>
  18. 19. Low productivity-Rice,Wheat and Maize(2002) RICE WHEAT MAIZE 3916 World 3532 Myanmar 3448 Bangladesh 6582 Japan 7372 USA 9135 Egypt 2915 India Yield Country 2720 World 2262 Pakistan 2164 Bangladesh 3885 China 7449 France 8043 U.K 2770 India Yield Country 4343 World 1769 Pakistan 5022 China 7789 Egypt 8813 France 9560 Italy 1705 India Yield Country
  19. 20. Low productivity causes <ul><li>Low quality of seeds </li></ul><ul><li>Low level of mechanisation </li></ul><ul><li>Inefficient plant protection measures </li></ul><ul><li>Huge post harvest losses </li></ul><ul><li>Poor irrigation facilities </li></ul>
  20. 21. Post Harvest issues <ul><li>a 20 % reduction in transportation costs will reduce final prices by as much as 10 pp </li></ul><ul><li>without more efficient logistics, increasing production — through subsidised credit, power and fertilisers — can lead to gluts that hurt rather than help farmers. </li></ul><ul><li>30% of the fruits and vegetables wasted due to cold storage problem ( 40 million tons amounting to US$ 13 billion ). </li></ul>
  21. 22. Irrigation
  22. 23. Vicious cycle in irrigation
  23. 24. Problems in irrigation sector <ul><li>Competition from households and industries </li></ul><ul><li>Canal irrigation systems - stagnating or declining from mid-1980s </li></ul><ul><li>Ground water-Rapid depletion, salinization and pollution related problems. </li></ul>
  24. 25. Decreasing farm sizes 0.9 Large(> 10 ha) 4.8 Medium(4.001-10 ha) 10.6 Semi-medium(2.001-4 ha) 18.1 Small(1.001-2 ha) 55.6 Marginal(0.1-1 ha) 9.9 Near landless (0-0.099 ha) Proportion of farmers Land size
  25. 26. <ul><li>growth originating in agriculture is at least twice as effective in reducing poverty as GDP growth originating outside agriculture </li></ul>World Development Report 2008
  26. 27. AREAS TO INVEST
  27. 28. Areas to invest (cont)
  28. 29. <ul><li>AGRICULTURE IS THE SOLUTION </li></ul>
  29. 30. <ul><li>THANK YOU ! </li></ul>

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