Indian Agriculture : Constraints and how did it change after liberalization

1. INDIAN
AGRICULTURE:
Constraints and how
did it change after
liberalization

2. INTRODUCTION
Indian Agriculture had reached a stage of
development and maturity much before
the now advanced countries of the world
embarked on the path of progress. Till the
middle of the 18th century there was a proper
balance between industry and agriculture and
both of them flourished hand in hand.it was only
after the advent of the alien British government
that agriculture lost the fibre of balance and the
economy of the country was badly shattered.

3. Some recent Facts on Indian
Agriculture
 Agriculture and allied activities
contribute to country’s GDP about 14.2%
 India is the largest producer, processor
and exporter of cashew in the whole
world.
 As per the final estimates the production
of food grains during 2008 2009 was
234.47 million tonnes.

4. Continued..
 National food for work programme
was launched on November 14,2004
 The top producer of pulses in india –
Madhya Pradesh.
 India is the largest producer of milk
and spices.
 Second largest producer of
rice,wheat,cotton,sugarcane,farmed
fish,sheep,goat and tea.

5. Importance of Agriculture in India
• Share in national income- 14% in 2011-
12.
• Largest employment providing sector-
57% in 2001.
• Provision of food surplus to the
expanding population.
• Providing raw materials to industries
• It plays a key role in international
trade for India.
• Role in poverty reduction.

6. Constraint for Agriculture in India
• Smallholder agriculture under neo-liberalism
small-holder agriculture which
predominates on large tracts of land in
the developing countries is slowly
regaining its importance after decades
of neglect that it was subject to under
neo-liberal policies.
• Lack of Infrastructure
Indian agriculture industry is suffering of lack
infrastructure for long period of time and those
people are doing the agriculture work they don’t
have that ability to build required infrastructure.

7. • Monsoon
Indian agriculture industry is mostly monsoon
depended. Unless there is good monsoon is
hard to get agriculture to get as smooth as
possible.
• Diminishing rate of return
It refers to the fact that how much I invest I get
less return. Due to that factor the agricultural
industry is getting affected and most of the
farmers are opting for another profession.

8. • Falling Output Prices
The real returns in agriculture were already
declining, particularly for commercially
cultivated crops, under the economic reforms
period. Since the liberalization of trade in
agricultural commodities in the mid-nineties.
• Technological factors
Apart from some part of the country Indian
farmers are not so economically well off. For
that reason farmers don’t get to access new
technologies.

9. i
g
h
l
o
a • Lack of credit
Credit for agriculture industry was not well
structured that is why many farmers were
suffering from taking high debt and many
bank as now it is we can see it was not there
before.

10. Causes of low productivity
• Social environment of villages is often stated as an
obstacle in agriculture development.
• Extreme pressure of population on land due that
non-agricultural sectors of the economy not even
expand.
• Lack of credit and marketing facilities.
• One of the key reason is zamindari system due to
that land in not get the proper tenure.
• Outdated agricultural techniques.
• Inadequate irrigation facilities.

11. Green revolution
• A new agricultural strategy was put into
practise for the 1st time in India in the kharif
season of 1966 and was termed high yielding
variety of seeds and the programme was also
called high yielding variety seeds programme
(hyvp) since it depended crucially on
irrigation,fertilisers,heavy seeds, pesticides
and insecticides. However, it was mainly
restricted to wheat,rice,jowar,bajra and maize.

12. continued
• However green revolution mainly
concentrated on wheat and an increase in
productivity was mainly seen in states like
Punjab, Haryana, western Uttar Pradesh
• Poor farmers could not afford the new seeds
or fertilisers that was required
 Inadequate irrigation cover
 Inadequate adoption of technology

13. Agricultural Growth before 1991
Period Food grains Non-food crops
1 1949-50 to
1964-65
2.93 3.54
2 1967-68 to
1989-90
2.74 2.72
3 1970-71 to
1979-80
2.08 1.66
4 1980-81 to
1989-90
3.54 4.84

14. Post Liberalization
Period

15. Post liberalization
Economic liberalisation and Indian agriculture is
an in depth study that throws light on the
changes that happened after 1991. After 1991 a
massive change happened in Economic Policy
that directly affect Indian Agriculture.

16. Structured Credit system
After 1991 government of India forms many banks
to give a proper credit delivery . For that reason
government form many banks for giving loan to the
farmers. Like
•NABARD
• RRB
• National Institute Agriculture Extension
Management.
• Multi Commodity Exchange

17. Government’s Policies for agriculture
• Krishan credit card
• e-choupel
• Easy loan process system for the farmers
• waiving the processing fees for the farmers
• Direct buy from the farmers
• Reducing the middle man as low as possible

18. Causes:
• Significant collation in the overall investment
• Evolve new technologies
• Shrinking farm size
• Inadequate irrigation cover
• Balanced use of inputs
• Credit delivery system

19. Post liberalisation phase
its generally divided into two phases:
The period 1990-93 to 2003-6
The period since 2005-6

20. The period since 2005-06
• This period specially in the 11th 5 year plan has
seen remarkably the recovery of agricultural
growth. states like Andhra
Pradesh,Gujarat,Maharashtra,Jharkhand,Tripu
ra have recorded a 5%plus growth rate in
agriculture. This was mainly due to the
conscious hike in public and private
investment

21. 1990 to 2012
• Agricultural growth during these years are
mainly the reflection of the impact of
economic reforms on agricultural
performance. this period is marked by sharp
deceleration in the southern and north
western region except Gujarat. Because there
was a rapid spread of cotton during that time
in Gujarat.

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