Agriculture has historically played a large role in India's economy and workforce, but its contribution has been declining over decades as other sectors like industry and services have grown. Some key factors contributing to the agricultural crisis in India include growing economic disparities between rural and urban areas, low and unstable agricultural incomes, dependence on rainfall and climate effects, liberal import policies, reduced subsidies and government investment, and lack of access to cheap and easy loans. Addressing these issues through increased subsidies, import restrictions, credit availability, and public investment in agriculture could help support the rural economy and farming communities.

1. Agriculture
Crises
In
Indian

2. Importance
of
Agriculture
in
Indian Economy
..

3. Distribution of the workforce
across economic sectors
Distribution of the GDP
across economic sectors
Distribution of the export quantity
across economic sectors
Agriculture (17.1%)
I n d u s t r y ( 2 9 . 1 % )
Services (53.9%)
Industry (25.58%)
Services (32.04%)
Agriculture (42.39%)
Industry (62.8%)
Others (25%)
Agriculture (12.2%)
Various Sectors Contribution in
India Parameter
Source: MoSPI-Statical Year Book of 2018

4. Trends in
Indian
Agriculture

5. Agriculture (57.0%)
1950/51
Agriculture (26.0%)
2000/01
Agriculture (19.78%)
2007/08
0
0
10
20
30
40
50
60
1950/51
1960/61
1970/71
1980/81
1990/91
2000/01
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
Agriculter Sector Contribution in India GDP
NSSO 66th Nationwide Survey, Planning Commission, Government of India(2019) and c Statista 2020

6. 0
2
4
6
8
10
1951/68 1968/81 1981/91 1991/97 1997/2002 2002/07
Av Growth rate
Total Economy Growth Rate Agriculture and Allied Sector growth Rate
q Growth rates of agriculture in India’s GDP had been growing during early periods, but in the
last few years, it is constantly declining.
q Growth performance of agriculture is always lower than that of the total economy since the
early independence period say pre-green revolution era.
q The divergence is the highest during the Tenth Plan Period.
q The growth rate of agriculture was relatively high during the eighties and early nineties.
q 2008- 09 growth rate fall to 1.6% which is account of the high base effect of 2007- 08
and due to a fall in the production of non-food crops including oilseeds, cotton, sugarcane and
jute than in 2007-08
Source : National Accounts Statistics 2008 (New Series), Central Statistical
Organization, Ministry of Statistics and Programme Implementation, New Delhi.

7. Root Cause for
Agriculture
Crises
The long term growth trend in production and productivity
of agriculture, considerably less than required to sustain the
projected high overall growth rates in the coming decade,
may actually be slowing down

8. Scientific Development
Technological Development
Climate | Soil | Topography
Market | Transport Facilities
Labour| Capital Government
policies.
Other FactorsPhysical Factors
Economic Factors
Factors that affects agriculture in India

9. 1.The
growing
economic
and social
disparities
SOURCE : 10th agriculture census 2015-16
q Agriculture is no more a profitable economical activity as compared to enterprices
q Due to this reason the activity create Economic and social disparrities between
agriculture and rest of the economy between rural and urban sectors
q Small and Marginal farmers with less than two hectares of land account for 86.2% of all
farmers in India.
q Semi-medium and medium land holding farmers owning between 2-10 hectares of land
account for 13.2% of all farmers.
q Land Holdings inequiality.
q For more frofit this large land holding farmers undergoes structurcal changes.
q The investment of large farmers in other sector is incresed which create crisis situation.

10. 2. Low level of income in Agriculture
SOURCE : Situation Assessment Survey of Farmers, 2013 (SAS), NSSO 70
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
<0.01 0.01-0.4 0.41-1.00 1.01-2.00 2.01-4.00 4.01-10.0 10.00+
Rupees(RS)
Size class of land in hectares
Monthly Income and Consumption by Size-Class of Holdings
Total Income(inRs) Total consumption expenditure(in Rs)
q At all-India level, average monthly income per agricultural household during the year 2012-2013 was estimated as Rs.6426.
q During the same period, the average monthly consumption expenditure per agricultural household was Rs.6223.
q So imcome drived from this activites is not sufficent enough to meet the expenditure of the cultivatars and hardly suffice to
meet some basic day-to-day requirements.

11. 3. Dependence on Rainfall and Climate
q Gbobal mean temperature have incresed by 0.74 degree during last 100 years.
q Rise in sea level is at rate of 1.8 mm per year over last 50 years.
q Globally hot days and nights leads to Heat Wave.
q Frequancy of heavy rainfall increase but modrate rainfall gets down.
q Increase in CO2 to 550 ppm increase yields of rice, wheat, legumes and
oilseeds by 10-20%.
q A 1 degree increase in temparature may reduce yields of overall crop.
Much higher loss at higher temperature.
q Productivity of most crops to decrease marginally by 2020 but
10-40% by 2100
q Agriculture sector itself is responsible for climate change mainly.
SOURCE : Indian Counsil of Agriculture Research 2005

12. 4. Liberal Import of Agricultural Products
qIn 2014,India's total global agriculture & allied export and import were at US$
43.47 billion and US$ 27.31 billion respectively.The share of agricultural exports is
decreased from 13.79 % in 2013-14 to 12.46% in 2015-16.
qDecrease in Tax Recipt
qBut in India there is removal of all restrictions to import these products or we can
say import duty is neglegible on these products which means cultivation of such
products became unprofitable and so their production was fully or partly stopped.
q Stop of this cultivation of that corp leads to loss agriculture jobs.
q Increase in Unemployment
q To save India Economy India Government take its step back form RCEP.

13. 5. Reduction in Agricultural Subsidies
q The post-reform period the government reduced different types of subsidies to
agriculture, and this has increased the production cost of cultivation.
q Govt Subsides on ferilizer, Irrigaton and power subsides fell $22.08B in FY14 from
$29.1B in FY11
q The input cost increased and made agriculture less profitable.
q India share $14 Subsidy/Hectare and 59 % population depandence.
Whereas China share $30 Subsidy/Hectare and 24 % population depandence.
0
2000
4000
6000
8000
10000
Wheat Gram Barley Masur Mustaed Safflower
MSP by quintal for 2018-19
MSP(2017-18)|(Rs/Quintal) MSP(2018-19)|(Rs/Quintal)
SOURCE : RBI Database

14. 6. Lack of Easy and Cheap Loan to Agriculture
q Credit is often considered to be the key element in increasing the productivity in
agriculture through modernisation.
q The credit flow to agriculture, more importantly after introduction of financial
sector reforms in early-nineties, increased from Rs.2,85,146 crore during the
Ninth Plan (1997-2002) to Rs.6,91,739 crore (243%) during the Tenth Plan
(2002-07). Credit disbursement during the Eleventh Plan (2007-12) further shot
up to Rs.19,20,400 crore (277%).
0
500000
1000000
1500000
2000000
2500000
Ninth Plan (1997-2002) Tenth Plan (2002-07) Eleventh Plan (2007-12)
Loan distribution / Five year plane
Rs(Crore)
SOURCE : RBI Database

15. 7. Decline in Gov-Investment in the Agri-Sector
q Falling private investment one of the reasons for low growth in Agro-secter.
q The official data shows that between FY12 and FY17 - the period for which comparative data
are available - public investment remained more or less static at 0.3-0.4% of the GDP ( 2011-
12 base, market price) while private investment fell from 2.7% to 1.8% - dragging the overall
investment from 3.1% of the GDP to 2.2%.
q Policy of economic liberalisation has adversely affected Indian agriculture.
q Unemployment in the agricultural sector increased as agriculture was not considered as a
profitable venture due to the fall in the price of farm products.
q The suicide of farmers is the third fall-out of stagnation in agriculture.
0
0.5
1
1.5
2
2.5
3
FY12 FY14 FY17
Investment of Agriculutre as % of GDP
Private Sector Public Sector
SOURCE : Agriculture Statistices 2017(2011-12 base, market price

17. q Subsidy and
concessions given
to agriculture
sector should be
increased
q Credit facilities should be
easily made available to
the farmers, especially
since the input cost of
agriculture has gone up
q Quantitative
restrictions should
be imposed on
import of
agricultural products

18. q The rural economy,
particularly agriculture,
will be greatly benefit if
programmes meant for
economically backward
q The government
should should not
acquire fertile
agricultural land
for SEZs
q The government
should increase its
investment and
expenditure in the
agriculture sector