It’s quite evident that the youth in rural hinterlandare not motivated to agricultural practices any more as agronomy has become negligible for a toug labour all through the year and deprived of any leave. Also their incompetence to meet the expense of better - quality seed varieties together with input costs that are rising excessively more than the output prices has supplemented to their distresses. The government should take instantaneous steps so that agrarian paybacks reach even the small farmers

1. http://www.iaeme.com/ijarm/index.asp 20 editor@iaeme.com
International Journal of Advanced Research in Management (IJARM)
Volume 7, Issue 1, Jan-Apr (2016), pp. 20-23, Article ID: 10220160701003
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___________________________________________________________________________
CAN RURAL INDIA BENEFIT FROM
FARMING? A QUESTION TO PONDER
UPON!!!
Prof. Anish K. Ravi
Chennai Business School, Chennai 600 042, India
ABSTRACT
It’s quite evident that the youth in rural hinterland are not motivated to
agricultural practices any more as agronomy has become negligible for a
tough labour all through the year and deprived of any leave. Also their
incompetence to meet the expense of better-quality seed varieties together with
input costs that are rising excessively more than the output prices has
supplemented to their distresses. The government should take instantaneous
steps so that agrarian paybacks reach even the small farmers.
Key words: Inflation, Organic, Drought, Economy, Infrastructure,
Technology, Transportation, Distribution
Cite this Article: Prof. Anish K. Ravi. Can Rural India Benefit From
Farming? A Question To Ponder Upon!!!. International Journal of Advanced
Research in Management, 7(1), 2016, pp. 20-23.
http://www.iaeme.com/IJARM/issues.asp?JType=IJARM&VType=7&IType=1
1. INTRODUCTION
Agriculture in India is beleaguered by glitches like ineffectual water management and
extreme use of fertilizers. Start-ups have come up in recent years to deliver solutions
to these problems. The system is also impending to back these innovations. Recently,
the Centre for Innovation Incubation and Entrepreneurship launched a food and
agriculture business accelerator to invest in agricultural technology start-ups, and
water innovation. There are start-ups that focus on building solutions for the masses.
Like start-ups that provides organic pesticides and fertilizers, as well as water saving
technology. Thanks to a subsidy-driven governing price regime, inert solutions have
been over-used. This has stemmed in compromises to crop-input effectiveness, the
environment & soil health.
A bionetwork develops to take the chemical substances out of agriculture in India.
There is a rush in demand for unconventional organic products. It is one of the fastest
growing agricultural input segments. Currently, this demand is achieved by local
operators distributing products with unreliable quality and inadequate applicability

2. Can Rural India Benefit From Farming? A Question To Ponder Upon!!!
http://www.iaeme.com/ijarm/index.asp 21 editor@iaeme.com
across regions and crop categories. Few claims that the products are all organic and
can be used across various soil types and crop life-cycles. Novel technologies for
generating cheap organic pesticides and enrichers to solve irrigation issues are at once
needed to help stem the fading situation is worth investing in.
2. MOUNTING FOOD PRICES
Consecutive droughts striking food production; rural inflation and the gap growing
India’s villages face a strident spike in food prices, and drives up the cost of
constituents such as milk and sugar. Poor transportation stops dwindling global prices
from reaching the hinterland. India’s first consecutive drought in three decades also
obscures government spending calculations as the Prime Minister of the country
attempts to trim a subsidy regime that has long bolstered up the rural economy.
The central bank faces a challenge achieving its four per cent inflation mark for
the medium term as levels deviate in town and country, and infrastructure growth
would take years to fix it. India’s overall retail inflation eased to 4 per cent in
October, aided by dwindling commodity prices, however rural inflation was at 5 per
cent, typically due to food prices. Some analysts claim, could deteriorate, despite the
diminishing effect of lower wages and slow growth in the agrarian sector. The effect
of this year's drought will expurgate supplies of milk, sugar and vegetables, which the
market hasn’t factored in yet completely.
Mounting food prices will hit rural India while urban inhabitants have realized
some low-priced imported food products, profiting from global depression that has
not sieved through to rural areas, given poor roads, rail and a dearth of storage
facilities for perishable goods. Prices of vegetables like tomatoes, onions and potatoes
have already been mounting, with some staples up as much as 19 per cent in a month.
Palm oil prices have also scaled in the last quarter, while milk prices have risen by 9
per cent.
3. WAVERING RURAL ECONOMY
A sign of relief is that the Indian sugar stocks are up by a quarter, and producers say
lower output for the reason that of the drought, which may perhaps will push them up
further. Edible oil prices which meets approximately 60 per cent of demand above
imports, and are also expected to upsurge, given the inadequate rainfall in palm oil
producing countries. In the interim, shortage of water and fodder is projected to hit
diary production. Production could drop by 4 to 6 per cent this year. The reduction
will obviously allow prices to rise. Food accounts for more than 50 per cent of rural
price rise in India, associated with a third of urban inflation, while categories like fuel,
which has come across a substantial price drop, has a smaller effect in rural areas,
where families use firewood or biogas from manure. The agrarian economy adds
around 50 per cent of Indian gross domestic product and is already showing marks of
stress as government condenses the generous subsidies that shielded villagers and
farmers once upon a time. Farmer’s income has dropped nearly 50 per cent due to
drought which in turn makes it hard to repay the loan taken to buy seeds and
fertilizers.
4. INFLATION DIVIDE
Urban India is benefitting from lower global prices whereas rural India isn’t
advancing because of its structural problems. Last several months have seen the
inflation falling strikingly, however the gains are not correspondingly disseminated.

3. Prof. Anish K. Ravi
http://www.iaeme.com/ijarm/index.asp 22 editor@iaeme.com
Urban inflation is running lower than rural inflation and its basic trend is actually
directly above the RBI's upcoming target. This superfluous inflation is outward for
food fuel and transport. Digging further, we will find that operational logjams are not
letting rural folks to profit completely from overall disinflation.
5. KEY REASONS
 Fuel and transportation prices have come down because of the fall of oil.
Nevertheless, rural India didn’t benefit the pass-through. Rural India's fuel mix is
more powered towards locally produced wood and biogas, which are not a part of the
deflation cycle. Conversely, fuel products are extensively used in urban India, i.e.
diesel and LPG, have profited from lower prices.
 Despite the lower diesel prices, fares across bus, taxi and auto rickshaws have been
stubbornly rising. Inversely, I would rather say operational bottlenecks like
inadequate transport networks are getting in the way of rural India obtaining the
complete benefits of cyclical developments i.e. the falling oil prices.
 Paradoxically let’s take the case of food, despite the fact that most of India's food is
from rural India, they seem to suffer pressures with higher food price. Largely the
inflation in India has continued lukewarm, owing to low global prices which in turn
makes it possible to import food merchandises that are short in supply. Conversely,
the rural Indians have not benefitted much from imports as compared to their urban
counterparts.
6. WHAT DO WE INFER FROM THIS?
 Rural India has some operational disadvantages vis-a-vis urban India.
 Operational bottlenecks are severer, transportation networks sparer and distribution
channels inadequate.
 These operational bottlenecks, unruffled with consecutive droughts, are undoubtedly
bringing down impending growth, keeping rural inflation to widen further.
 If monsoon patterns are increasingly becoming volatile, the impending growth
prospects could become even more susceptible.
7. POSSIBLE SOLUTION
 Rural infrastructure needs higher investments
 Evocative restructurings of policies in rural India's on occupation, agriculture are
unavoidable.
8. CONCLUSION
There are many challenges still, however various government schemes must be
implemented as a part of encouraging agriculture by providing financial support to the
farmers in the event of failure of crops as a result of natural calamities, pests and
diseases. These schemes need to be available to all farmers irrespective of their size of
holding (small and marginal farmers). These schemes should cover all the food crops.
Such initiatives will certainly face some challenges. However proper training,
uninterrupted services, electricity, availability of smart phones, tablets and computers
to almost every farmer can make the difference.

4. Can Rural India Benefit From Farming? A Question To Ponder Upon!!!
http://www.iaeme.com/ijarm/index.asp 23 editor@iaeme.com
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