Introduction to Agriculture in India
Agriculture provides the principal means of livelihood for over 60% of India’s population. Despite a steady decline in its share to the Gross Domestic Product (GDP), agriculture remains the largest economic sector in the country. Low and volatile growth rates under the sector and the recent escalation of an agrarian crisis in several parts of the country pose a threat not only to national food security but also to the economic well-being of the nation as a whole.
In 1947, the share of Agriculture in total GDP was 50%. Gradually it declined and has now come down to about 20%. Still however, 60% population depends on agriculture for the survival. In 1988-89 i.e. prior to introduction of Financial Sector Reforms, growth rate in Agriculture in India was 15.4%, which has come down to 9.4%(2006-07). Due to rapid growth of rural population and division of families the farmland has undergone rapid fragmentation.
Presently 80% of the farmland holding are with the small and marginal farmers owning land up to 5 acres. For these categories of farmers, cost of production by way of farm inputs has increased manifold over the years while the productivity of the land remained at the same level and sale price of farm produce has not commensurately increased. These factors have driven farmers to the debt trap and have caused distress leading to suicide.
Many studies have revealed that smaller the landholding, higher is the cost of production. The distressed economy of small scale crop cultivation is further accentuated by lack of knowledge, scientific application of crop management, diversification practices, inappropriate system such as non-availability of quality input material in time, inadequate irrigation facility, non-remunerative prices and dominance of middlemen in Agricultural Marketing Structure.
Government of India has been aiming to achieve close to 10% growth by 2016, but all this cannot be achieved unless the targeted growth is ensured for Agriculture sector.
