Agriculture in Modern India

7/29/2019 Agriculture in Modern India

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Agriculture in Modern India

Agriculture has a significant role in socio-economic fabric of India. Here Sikh farmers aredeploying a tractor and cane crusher to produce and distribute free cane juice on an Indianfestival.

Several festivals relate to Agriculture in India. Holi - the festival of colors - is celebrated acrossIndia as the coming of spring. It is celebrated with bonfires, meeting friends and strangers,playful painting each other with colors.

Farms in rural India. Most farms in India are small plots such as in this image.

Agriculture in Indiahas a significant history. Today, India ranks second worldwide in farmoutput. Agriculture and allied sectors like forestry and fisheries accounted for 16.6% of the GDP

in 2009, about 50% of the total workforce. The economic contribution of agriculture to India'sGDP is steadily declining with the country's broad-based economic growth. Still, agriculture isdemographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India.

developing countries. Additionally, losses after harvest due to poor infrastructure andunorganized retail cause India to experience some of the highest food losses in the world.
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Indian agriculture since 1947

Over 50 years since its independence, India has made immense progress towards food security.Indian population has tripled, but food-grain production more than quadrupled: there has thusbeen substantial increase in available food-grain per capita.

Prior to the mid-1960s India relied on imports and food aid to meet domestic requirements.However, two years of severe drought in 1965 and 1966 convinced India to reform itsagricultural policy, and that India could not rely on foreign aid and foreign imports for foodsecurity. India adopted significant policy reforms focused on the goal of foodgrain self-sufficiency. This ushered in India's Green Revolution. It began with the decision to adoptsuperior yielding, disease resistant wheat varieties in combination with better farming knowledgeto improve productivity. The Indian state ofPunjab led India's green revolution and earned itselfthe distinction of being the country's bread basket. The initial increase in production was centredon the irrigated areas of the Indian states ofPunjab, Haryana and western Uttar Pradesh. Withboth the farmers and the government officials focusing on farm productivity and knowledge

transfer, India's total foodgrain production soared. A hectare of Indian wheat farms that producedan average of 0.8 tons in 1948, produced 4.7 tons of wheat in 1975 from the same land. Suchrapid growths in farm productivity enabled India to become self-sufficient by the 1970s. It alsoempowered the smallholder farmers to seek further means to increase food staples produced perhectare. By 2000, Indian farms were adopting wheat varieties capable of yielding 6 tons of wheatper hectare.

With agricultural policy success in wheat, India's Green Revolution technology spread to rice.However, since irrigation infrastructure was very poor, Indian farmer innovated with tube-wells,

to harvest ground water. When gains from the new technology reached their limits in the statesof initial adoption, the technology spread in the 1970s and 1980s to the states of eastern IndiaBihar, Orissa and West Bengal. The lasting benefits of the improved seeds and new technologyextended principally to the irrigated areas which account for about one-third of the harvestedcrop area. In the 1980s, Indian agriculture policy shifted to "evolution of a production pattern inline with the demand pattern" leading to a shift in emphasis to other agricultural commoditieslike oilseed, fruit and vegetables. Farmers began adopting improved methods and technologies indairying, fisheries and livestock, and meeting the diversified food needs of India's growing
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population. As with Rice, the lasting benefits of improved seeds and improved farmingtechnologies now largely depends on whether India develops infrastructure such as irrigationnetwork, flood control systems, reliable electricity production capacity, all season rural andurban highways, cold storage to prevent food spoilage, modern retail, and competitive buyers ofproduce from the Indian farmer. This is increasingly the focus of Indian agriculture policy.

According to a 2007 EU report, in the 1990s and early 2000s, Indian agriculture policy aimed toimprove food self sufficiency and alleviate hunger through food distribution. Aside frominvesting in infrastructure, the government supports agriculture through minimum support prices(MSP) for the major agricultural crops, farm input subsidies and preferential credit schemes.Under the price support policy, MSPs are set annually for basic staples to protect producers fromsharp price falls, to stabilise prices and to ensure adequate food stocks for public distribution.MSPs have been below the prevailing market prices. Indian government has also deployedsubsidies on farm inputs including fertilizers, electrical power and irrigation water. Thesesubsidies have led to inefficient use of these farm inputs.

India's agricultural economy is undergoing structural changes. Between 1970 and 2011, the GDPshare of agriculture has fallen from 43 to 16 percent. This isn't because of reduced importance ofagriculture, or a consequence of agricultural policy. This is largely because of the rapideconomic growth in services, industrial output, and non-agricultural sectors in India between2000 to 2010.

Accomplishments

Indian agriculture is diverse, ranging from impoverished farm villages to developed farmsutilizing modern agricultural technologies. This image shows a farming community in a moreprosperous part of India.
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A farm in Haryana, a northern state of India, prospering with India's Green Revolution.

The changing face of Indian agriculture - formation of larger farms and adoption of wind powergeneration technologies.

Rice farming in Bihar, an eastern state of India

A panoramic view of a rice, cassava and banana farm in Kerala, a southern state of India.
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A mustard farm in Rajasthan, a western state of India.

Amul - an integrated dairy with milk processing plant in Gujarat, a western state of India.

India has some of the world's best agricultural yields in its tea plantations. An tea estate inKerala, a southern state of India

As of 2011, India had a large and diverse agricultural sector, accounting, on average, for about16 percent of GDP and 10 percent of export earnings. India's arable land area of 159.7 millionhectares (394.6 million acres) is the second largest in the world, after the United States. Its grossirrigated crop area of 82.6 million hectares (215.6 million acres) is the largest in the world. Indiahas grown to become among the top three global producers of a broad range of crops, includingwheat, rice, pulses, cotton, peanuts, fruits, and vegetables. Worldwide, as of 2011, India had thelargest herds of buffalo and cattle, is the largest producer of milk, and has one of the largest andfastest growing poultry industries.
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The following table presents the twenty most important agricultural produce in India, byeconomic value, in 2009. Included in the table is the average productivity of India's farms foreach produce. For context and comparison, included is the average of the most productive farmsin the world and name of country where the most productive farms existed in 2010. The tablesuggests India has large potential for further accomplishments from productivity increases, in

increased agricultural output and agricultural incomes.

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Agriculture in India, largest crops by economic value

Economic

valueUnit price

Average yield,

India

(2010)

World's most productive

farms

(2010)

Rank Produce(2009 prices,US$)

(US$ /kilogram)

(tons perhectare)

(tons perhectare)

Country

1 Rice $35.74 billion 0.27 3.3 10.8 Australia

2 Buffalo milk $25.07 billion 0.4 1.7 1.9 Pakistan

3 Cow milk $14.09 billion 0.31 1.2 10.3 Israel

4 Wheat $12.13 billion 0.15 2.8 8.9 Netherlands

5 Sugar cane $8.61 billion 0.03 66 125 Peru

6 Mangoes $8.12 billion 0.6 6.3 40.6 Cape Verde

7 Bananas $7.60 billion 0.28 37.8 59.3 Indonesia

8 Cotton $5.81 billion 1.43 1.6 4.6 Israel

9 Potatoes $5.31 billion 0.15 19.9 44.3 USA

10FreshVegetables

$5.28 billion 0.19 13.4 76.8 USA

11 Tomatoes $4.12 billion 0.37 19.3 524.9 Belgium

12 Buffalo meat $3.84 billion 2.69 0.138 0.424 Thailand

13 Onions $2.92 billion 0.21 16.6 67.3 Ireland

14 Okra $2.90 billion 0.64 10.6 20.2 Cyprus

15 Chick peas $2.83 billion 0.4 0.9 2.8 China

16 Fresh fruits $2.79 billion 0.35 7.6 23.9 Israel

17 Eggs $2.65 billion 0.83 13.8 24.7 Jordan

18 Soybean $2.61 billion 0.26 1.1 3.7 Turkey19 Cattle meat $2.39 billion 2.7 0.1 0.42 Japan

20 Groundnuts $2.33 billion 0.42 1.1 5.5 Nicaragua

The Statistics Office of the Food and Agriculture Organization reported that, per final numbersfor 2009, India had grown to become the world's largest producer of the following agriculturalproduce:
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Fruit Fresh Lemons and

limes Buffalo milk,

whole, fresh

Castor oil seed Safflower seed Sorghum Millet Spices Okra Jute Beeswax Bananas Mangoes,

mangosteens,

guavas

Pulses Indigenous

Buffalo Meat Fruit, tropical Ginger

Chick peas Areca nuts Other Bastfibres Pigeon peas Papayas Chillies and

peppers, dry Anise, badian,

fennel, corian Goat milk,

whole, fresh

Per final numbers for 2009, India is the world's second largest producer of the followingagricultural produce:

Wheat Rice Vegetables fresh Sugar cane Groundnuts, with

shell Lentils Garlic Cauliflowers and

broccoli Peas, green Sesame seed Cashew nuts,

with shell Silk-worm

cocoons, reelable

Cow milk,whole, fresh

Tea Potatoes Onions

Cotton lint Cottonseed Eggplants

(aubergines) Nutmeg, mace

and cardamoms Indigenous

Goat Meat Cabbages and

other brassicas Pumpkins,

squash andgourds

In 2009, India was the world's third largest producer of eggs, oranges, coconuts, tomatoes, peasand beans.


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In addition to growth in total output, agriculture in India has shown an increase in averageagricultural output per hectare in last 60 years. The table below presents average farmproductivity in India over three farming years for some crops. Improving road and powergeneration infrastructure, knowledge gains and reforms has allowed India to increase farmproductivity between 40% to 500% over 40 years. India's recent accomplishments in crop yields

while being impressive, are still just 30% to 60% of the best crop yields achievable in the farmsof developed as well as other developing countries. Additionally, despite these gains in farmproductivity, losses after harvest due to poor infrastructure and unorganized retail cause India toexperience some of the highest food losses in the world.

Agriculture productivity in India, growth in average yields from 1970 to 2010

Crop[12]

Average YIELD, 1970-

1971

Average YIELD, 1990-

1991

Average YIELD, 2010

2011

kilogram per hectare kilogram per hectare kilogram per hectare 4

Rice 1123 1740 2240

Wheat 1307 2281 2938

Pulses 524 578 689

Oilseeds 579 771 1325

Sugarcane 48322 65395 68596

Tea 1182 1652 1669

Cotton 106 225 510

India and China are competing to establish the world record on rice yields. Yuan Longping ofChina National Hybrid Rice Research and Development Center, China, set a world record forrice yield in 2010 at 19 tonnes per hectare in a demonstration plot. In 2011, this record wassurpassed by an Indian farmer, Sumant Kumar, with 22.4 tonnes per hectare in Bihar, also in ademonstration plot. Both these farmers claim to have employed newly developed rice breeds andSystem of Rice Intensification (SRI), a recent innovation in rice farming. The claimed Chineseand Indian yields have yet to be demonstrated on 7 hectare farm lots and that these arereproducible over two consecutive years on the same farm.

Problems
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Farmers manually harvesting rice in southern India

A rural market in India - farmers with limited marketing options sell their surplus produce inbulk to middlemen at a price that is less than 25% of the price paid by Indian consumer. The lackof modern retail network is a major problem for Indian agriculture.

India lacks cold storage, food packaging as well as safe and efficient rural transport system. Thiscauses one of the world's highest food spoilage rates, particularly during Indian monsoons andother adverse weather conditions. Food travels to the Indian consumer through a slow andinefficient chain of traders. Indian consumers buy agricultural produce in suburban marketsknown as 'sabzi mandi' such as one shown or from roadside vendors.

Cotton flower in India. This is the main cash crop in Vidarbha region.
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Indian agriculture includes a mix of traditional to modern farming techniques. In some parts ofIndia, traditional use of cattle to plough farms remains in use. Traditional farms have some of thelowest per capita productivities and farmer incomes."Slow agricultural growth is a concern for policymakers as some two-thirds of Indias peopledepend on rural employment for a living. Current agricultural practices are neither economicallynor environmentally sustainable and India's yields for many agricultural commodities are low.Poorly maintained irrigation systems and almost universal lack of good extension services areamong the factors responsible. Farmers' access to markets is hampered by poor roads,

rudimentary market infrastructure, and excessive regulation."World Bank: "India Country Overview 2008"

"With a population of just over 1.2 billion, India is the worlds largest democracy. In the pastdecade, the country has witnessed accelerated economic growth, emerged as a global player withthe worlds fourth largest economy in purchasing power parity terms, and made progress towardsachieving most of the Millennium Development Goals. Indias integration into the global

economy has been accompanied by impressive economic growth that has brought significanteconomic and social benefits to the country. Nevertheless, disparities in income and humandevelopment are on the rise. Preliminary estimates suggest that in 2009-10 the combined allIndia poverty rate was 32% compared to 37% in 2004-05. Going forward, it will be essential forIndia to build a productive, competitive, and diversified agricultural sector and facilitate rural,non-farm entrepreneurship and employment. Encouraging policies that promote competition inagricultural marketing will ensure that farmers receive better prices."World Bank: "India Country Overview 2011"

A 2003 analysis of Indias agricultural growth from 1970 to 2001, by Food and Agriculture

Organization of the United Nations, identified systemic problems in Indian agriculture. For foodstaples, the annual growth rate in production during the six-year segments 1970-76, 197682,198288, 19881994, 1994-2000 were found to be respectively 2.5, 2.5, 3.0, 2.6, and 1.8 percentper annum. Corresponding analyses for the index of total agricultural production show a similarpattern, with the growth rate for 1994-2000 attaining only 1.5 precent per annum. The lowgrowth rates may constitute in part a response to inadequate returns to Indian farmers. India hasvery poor rural roads affecting timely supply of inputs and timely transfer of outputs from Indianfarms, inadequate irrigation systems, crop failures in some parts of the country because of lack ofwater while in other parts because of regional floods, poor seed quality and inefficient farmingpractices in certain parts of India, lack of cold storage and harvest spoilage causing over 30% offarmer's produce going to waste, lack oforganized retail and competing buyers thereby limitingIndian farmer's ability to sell the surplus and commercial crops. The Indian farmer receives just10 to 23 percent of the price the Indian consumer pays for exactly the same produce, the
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difference going to losses, inefficiencies and middlemen traders. Farmers in developedeconomies of Europe and the United States, in contrast, receive 64 to 81 precent of the price thelocal consumer pays for exactly the same produce in their supermarkets.

Even though, India has shown remarkable progress in recent years and has attained self

sufficiency in food staples, the productivity of Indian farms for the same crop is very lowcompared to farms in Brazil, the United States, France and other nations. Indian wheat farms, forexample, produce about a third of wheat per hectare per year in contrast with wheat farms inFrance. Similarly, at 44 million hectares, India had the largest farm area under rice production in2009; yet, the rice farm productivity in India was less than half the rice farm productivity inChina. Other food staples productivity in India is similarly low, suggesting a major opportunityfor growth and future agricultural prosperity potential in India. Indian total factor productivitygrowth remains below 2 percent per annum; in contrast, China has shown total factorproductivity growths of about 6 percent per annum, even though China too has smallholdingfarmers. If India could adopt technologies and improve its infrastructure, several studies suggestIndia could eradicate hunger and malnutrition within India, and be a major source of food for the

world.

Indian farms are not poor performing for every crop. For some, Indian farms post the best yields.For example, some of India's regions consistently posts some of the highest yields for sugarcane,cassava and tea crops every year.

Within India, average yields for various crops vary significantly between Indian states. SomeIndian states produce two to three times more grains per acre of land than the grain produced insame acre of land in other Indian states. The table compares the statewide average yields for afew major agricultural crops within India, again for 2001-2002 agricultural year.

Crop Average farm yield inBihar

Average farm yield inKarnataka

Average farm yield inPunjab

kilogram per hectare kilogram per hectare kilogram per hectare

Wheat 2020 unknown 3880

Rice 1370 2380 3130

Pulses 610 470 820

Oil seeds 620 680 1200

Sugarcane 45510 79560 65300

Crop yields for some farms within India are within 90% of the best achieved yields by farms in

developed countries such as the United States and in European Union. No single state of India isbest in every crop. Indian states such as Tamil Nadu achieve highest yields in rice and sugarcane,Punjab enjoys the highest yields in wheat and coarse grains, Karnataka does well in cotton, Bihardoes well in pulses, while other states do well in horticulture, aquaculture, flower and fruitplantations. These differences in agricultural productivity within India is a function of localinfrastructure, soil quality, micro-climates, local resources, farmer knowledge and innovations.However, one of the serious problems in India is the lack of rural road network, storage, logisticsnetwork, and efficient retail to allow free flow of farm produce from most productive but distant
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Indian farms to Indian consumers. Indian retail system is highly inefficient. Movement ofagricultural produce within India is heavily and overly regulated, with inter-state and even inter-district restrictions on marketing and movement of agricultural goods The talented and efficientfarms are currently unable to focus on the crops they can produce with high yields and at lowestcosts.

One study suggests Indian agricultural policy should best focus on improving rural infrastructureprimarily in form of irrigation and flood control infrastructure, knowledge transfer in forms ofbetter yielding and more disease resistant seeds with the goal of sustainably producing as manykilograms of food staples per hectare as already produced sustainably in other nations.Additionally, cold storage, hygienic food packaging and efficient modern retail to reduce wastecan also dramatically improve Indias agricultural output availability and rural incomes.

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The low productivity in India is a result of the following factors:

The average size of land holdings is very small (less than 2 hectares) and is subject tofragmentation due to land ceiling acts, and in some cases, family disputes. Such smallholdings are often over-manned, resulting in disguised unemployment and lowproductivity of labour. Some reports claim smallholder farming may not be cause of poorproductivity, since the productivity is higher in China and many developing economieseven though China smallholder farmers constitute over 97 percent of its farmingpopulation.

[62]Chinese smallholder farmer is able to rent his land to larger farmers,

China's organized retail and extensive Chinese highways are able to provide the incentiveand infrastructure necessary to its farmers for sharp increases in farm productivity.

According to the World Bank, Indian Branch: Priorities for Agriculture and RuralDevelopment", India's large agricultural subsidies are hampering productivity-enhancinginvestment. Overregulation of agriculture has increased costs, price risks and uncertainty.

Government intervenes in labour, land, and credit markets. India has inadequateinfrastructure and services. World Bank also says that the allocation of water isinefficient, unsustainable and inequitable. The irrigation infrastructure is deteriorating.The overuse of water is currently being covered by over pumping aquifers, but as theseare falling by foot of groundwater each year, this is a limited resource.

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Illiteracy, general socio-economic backwardness, slow progress in implementing landreforms and inadequate or inefficient finance and marketing services for farm produce.

Inconsistent government policy. Agricultural subsidies and taxes often changed withoutnotice for short term political ends.

Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of the land wasirrigated in 200304 which result in farmers still being dependent on rainfall, specificallythe Monsoon season. A good monsoon results in a robust growth for the economy as awhole, while a poor monsoon leads to a sluggish growth. Farm credit is regulated byNABARD, which is the statutory apex agent for rural development in the subcontinent.At the same time overpumping made possible by subsidized electric power is leading toan alarming drop in aquifer levels.

A third of all food that is produced rots due to inefficient supply chains and the use of the"Walmart model" to improve efficiency is blocked by laws against foreign investment inthe retail sector.
http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-ap1-60http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-ap1-60http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-ap1-60http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-61http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-61http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-61http://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Agricultural_subsidieshttp://en.wikipedia.org/wiki/Irrigationhttp://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-63http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-63http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-63http://en.wikipedia.org/wiki/Monsoonhttp://en.wikipedia.org/wiki/NABARDhttp://en.wikipedia.org/wiki/Walmartinghttp://en.wikipedia.org/wiki/Walmartinghttp://en.wikipedia.org/wiki/NABARDhttp://en.wikipedia.org/wiki/Monsoonhttp://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-63http://en.wikipedia.org/wiki/Irrigationhttp://en.wikipedia.org/wiki/Agricultural_subsidieshttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-61http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-ap1-60


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Initiatives

Viticulture farms in Maharashtra, a western state in India.

A coffee plantation in Kerala. India is the fifth largest producer of coffee beans in the world,according to the statistics office of the FAO.

The required level of investment for the development of marketing, storage and cold storage

infrastructure is estimated to be huge. The government has not been able to implement variousschemes to raise investment in marketing infrastructure. Among these schemes are Constructionof Rural Go downs,Market Research and Information Network, andDevelopment /Strengthening ofAgricultural MarketingInfrastructure, Grading and Standardization.

[71]

The Indian Agricultural Research Institute (IARI), established in 1905, was responsible for theresearch leading to the "Indian Green Revolution" of the 1970s. The Indian Council ofAgricultural Research (ICAR) is the apex body in agriculture and related allied fields, includingresearch and education. The Union Minister of Agriculture is the President of the ICAR. TheIndian Agricultural Statistics Research Institute develops new techniques for the design ofagricultural experiments, analyses data in agriculture, and specializes in statistical techniques for

animal and plant breeding.

Recently Government of India has set up Farmers Commission to completely evaluate theagriculture program. However the recommendations have had a mixed reception.

In November 2011, India announced major reforms in organized retail. These reforms wouldinclude logistics and retail of agricultural produce.
http://en.wikipedia.org/wiki/Food_and_Agriculture_Organizationhttp://en.wikipedia.org/wiki/Agricultural_Marketinghttp://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-70http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-70http://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-70http://en.wikipedia.org/wiki/Indian_Agricultural_Research_Institutehttp://en.wikipedia.org/wiki/Indian_Green_Revolutionhttp://en.wikipedia.org/wiki/Indian_Council_of_Agricultural_Researchhttp://en.wikipedia.org/wiki/Indian_Council_of_Agricultural_Researchhttp://en.wikipedia.org/wiki/Indian_Agricultural_Statistics_Research_Institutehttp://en.wikipedia.org/wiki/Retailing_in_Indiahttp://en.wikipedia.org/wiki/File:Ooty_Coffee_Plantation.jpghttp://en.wikipedia.org/wiki/File:Barrels_outside_Chateau_Indage_Vineyards,_Narayangaon_-_Pune,_Mah..jpghttp://en.wikipedia.org/wiki/File:Ooty_Coffee_Plantation.jpghttp://en.wikipedia.org/wiki/File:Barrels_outside_Chateau_Indage_Vineyards,_Narayangaon_-_Pune,_Mah..jpghttp://en.wikipedia.org/wiki/Retailing_in_Indiahttp://en.wikipedia.org/wiki/Indian_Agricultural_Statistics_Research_Institutehttp://en.wikipedia.org/wiki/Indian_Council_of_Agricultural_Researchhttp://en.wikipedia.org/wiki/Indian_Council_of_Agricultural_Researchhttp://en.wikipedia.org/wiki/Indian_Green_Revolutionhttp://en.wikipedia.org/wiki/Indian_Agricultural_Research_Institutehttp://en.wikipedia.org/wiki/Agriculture_in_India#cite_note-70http://en.wikipedia.org/wiki/Agricultural_Marketinghttp://en.wikipedia.org/wiki/Food_and_Agriculture_Organization


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Agriculture in Modern India

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