Indian agriculture has made rapid strides since Independence. In taking the annual food grains production from 51 million tonnes in early fifties to 206 million tonnes at the turn of the century, it has contributed significantly in achieving self-sufficiency in food and in avoiding food shortages.
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Agricultural Growth Opportunities in India
1.
2. Agriculture Overview
New Economy Policy and New agricultural
policy
Opportunities & Threats
Opportunities to Export Agricultural Products
Increase Income from farming
Lots of Room to grow in food processing
Marketing of Fresh agriculture produce
Corporate farming
Contract farming
3. Indian agriculture has made rapid strides since
Independence. In taking the annual food grains
production from 51 million tonnes in early
fifties to 206 million tonnes at the turn of the
century, it has contributed significantly in
achieving self-sufficiency in food and in
avoiding food shortages.
4. Over 4 per cent annual growth rate aimed over
next two decades..
Greater private sector participation through
contract farming.
Price protection for farmers.
National agricultural insurance scheme to be
launched.
Dismantling of restrictions on movement of
agricultural commodities throughout the country.
Rational utilisation of country's water resources
for optimum use of irrigation potential.
5. High priority to development of animal
husbandry, poultry, dairy and aquaculture.
Capital inflow and assured markets for crop
production.
Exemption from payment of capital gains tax on
compulsory acquisition of agricultural land.
Minimise fluctuations in commodity prices.
Continuous monitoring of international prices.
Plant varieties to be protected through a
legislation.
Adequate and timely supply of quality inputs to
farmers.
7. Size of Holdings
Land Degradation
Climate Change
Declining Interest in Agriculture
Crop loss due to weeds, insect and diseases
8. Agricultural exports were 44 % of total exports
in FY 1960; they decreased to 32 % in FY 1970,
to 31 % in FY 1980, to 18.5 % in FY 1988, and to
15.3 % in FY 1993.
12. Food processing
Food processing sector is indispensable for
the development of the economy. It helps to
commercialize farming which gives farmers
the opportunity to diversify and increase
their income and generates employment.
13. Primary processing of food comprises of
sorting, grading and packaging of fruits and
vegetables, milk, rice, spices, etc.
Secondary processing of food comprises of
re-shaping of food for ease of consumption.
It includes flour, oil cakes, tea leaf and
beverages powder.
Tertiary Processing of Food (or) Value Added
Food Segment Value added food segment
includes processed fruits and vegetables,
juices, jam & jelly etc.
14.
15. Indian agriculture is under policy reforms for
some time now. One of the issues it faces is
that of lack of viability of smallholdings and
lack of international competitiveness of its
produce.
17. Inputs and production services are often
supplied by the sponsor
This is usually done on credit through
advances from the sponsor
Contract farming often introduces new
technology and also enables farmers to learn
new skills
Farmers' price risk is often reduced as many
contracts specify prices in advance
Contract farming can open up new markets
which would otherwise be unavailable to
small farmers
18. Particularly when growing new crops, farmers
face the risks of both market failure and
production problems
Inefficient management or marketing problems
can mean that quotas are manipulated so that
not all contracted production is purchased
Sponsoring companies may be unreliable or
exploit a monopoly position
The staff of sponsoring organizations may be
corrupt, particularly in the allocation of quotas
Farmers may become indebted because of
production problems and excessive advances