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 Problems Of Agricultural Sector In India



Slow And Uneven Growth

(a) While the population is growing at a rate of around 2 per cent per annum, food grain production has increased at an annual rate of 2.42 percent. This rate is just sufficient to maintain the existing standard of consumption of people During the first six years of new millennium starting 2001-02,this sector has grown at modest rate. During the first six years of new millennium, this sector has grown at very modest rate of 3% pa.

(b) Low yield per unit are across almost all crop has become a regular feature of Indian agriculture. For example though India accounted for 21.8 % of global rice production, the estimated yield per-hectare in 2004-05 was 1/3 rd than that of Egypt .Similarly in wheat while India accounted for 12% of global production, its average yield was less than a third of the highest yield level estimated for U.K. in 2004-05 There are regional imbalance in the spread of growth. The growth has remained confined to certain areas like Punjab, Haryana and Western Uttar Pradesh.


Note So Modern Agriculture:

(a) The HYVP was initiated on a small area of 1.89 million hectares in 1966–67 and even in 2003–04 only 80 million hectare of land was covered by this program which is just 44 per cent of the gross cropped area.

(b) About 60% net sown area is rain fed and there are no appropriate dry-farming techniques.

(c) Only 40 per cent of the gross cropped area has irrigation facilities.


Flaws In Land Reforms:

(a) The legislation measures have not been completed in all the states.

(b) There are snags in legislation like definition of ‘personal cultivation’ and ‘tenants’ were inadequate, substantial area were given to zamindars for their personal cultivation, landlords often forced their tenants to surrender the lands voluntarily, ceiling laws were inadequate and zamindars indulged in large scale transfer of land to their family members in order to escape these laws.


Problems Relating To Finance:

In 1951, money lenders accounted for as much as 71.6 percent of rural credit. Moneylenders used to charge exorbitant rates of interest ranging from 18 to 50 per cent. They often manipulated accounts and cheated the poor uneducated farmers. Therefore, after independence steps were taken to free farmers from the clutches of money lenders. In 1975, the government established Regional Rural Banks (RRBs) to specifically meet the requirements of the farmers and villages. This was followed by the setting of an apex bank called National Bank for Agricultural and Rural Development (NABARD) in 1982. Introduction of Farm Credit Package in 2004,Kisan credit card scheme in 1998,Agricultuer Debt Waiver and Debt Relief scheme2008 are few scheme for improving finance in agriculture sector.


Problems Relating To Warehousing And Marketing:

(a) The storage facilities with the individual farmers are normally very primitive types in the form of dug-holes and pits. As a result 10–15 percent of agriculture produce gets spoiled or eaten by rats.

(b) There is a lack of organization among farmers so they do not get a fair price from the purchasers who are generally well-organized.

(c) There are a number of agents between the producers (farmers) and the consumers (buyers). They charge a heavy amount as their fees or as commission. As a result, the farmers do not get a fair share in the total productprice charged.

(d) Because of heavy indebtedness, the farmers are many times forced to sell their produces at low prices and sometimes due to lack of proper transport facilities in the nearest market at not so great prices.

(e) Several malpractices exist in unorganized agricultural markets such as under weighing, levying of a number of unauthorized fees and taxes etc.

(f) The farmers are many a times not well informed about the prevailing market conditions including prices prevailing in the markets.

(g) Grading and standardization are at a very low level. So often inferior quality gets mixed up with superior one, killing the motivation of farmers to produce superior quality products.

(h) In order to meet the needs of poor people in the country, the government runs a network of ration shops and fair price shops which provide food grains and other essential commodities at very low prices to consumers. Agriculture under XIth Plan:
Increased investment in project like irrigation, water shed development in rain fed areas , rail road connectivity and rural electrification.

A second green revolution is urgently needed to raise the growth rate of agricultural GDP to 4 %.


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