OBJECTIVES

India is mainly an agricultural country. Agriculture is the most important occupation for most of
the Indian families. In India, agriculture contributes about sixteen percent (16%) of total GDP
and ten percent (10%) of total exports.
Over 60 % of Indias land area is arable making it the second largest country in terms of total
arable land. Agricultural products of significant economic value includes rice, wheat, potato,
tomato, onion, mangoes, sugar-cane, beans, cotton, etc.
Economic Growth: Agriculture is the backbone of Indian economy. Though, with the growth of
other sectors, the overall share of agriculture on GDP of the country has decreased. Still,
Agriculture continues to play a dominant part in the overall economic scenario of India.
Source of Food for domestic consumption: Food is essential for life. We depend on agricultural
outputs for our food requirements. India produces large quantity of food grains such as millets,
cereals, pulses, etc. A major portion of the food-stuffs produced is consumed within the country.
Besides agriculture with a commercial bias, subsistence agriculture with its emphasis on the
production of food for the cultivators family is widespread. Traditionally, Agriculture is
followed as the simplest method of obtaining food for the family. Agriculture in India is more a
way of life then a mode of business.
Export: India exports excess food and agricultural products. A large proportion of Indias export
trade is based on the agricultural products, such as jute, tea, tobacco, coffee, spices, and sugar. It
helps in increasing the foreign exchange. India is ranked seventh in terms of agricultural exports.
In 2013, India exported agricultural products valuing around 39 billion dollars.
Agriculture supplies bulk of wage goods required by the non-agricultural sector. It provides raw
materials for a large section of industries. Sugar, tea, cotton textiles, jute goods, vegetable oil,
etc. industries are regularly fed by agricultural produces. Many cottage industries depend on
agricultural operations. The contribution of agriculture to the nations Forex (foreign exchange
reserve) is also quite significant. Agriculture accounts for about 18 percent share of the total
value of Indias export. Agricultural growth has direct impact on poverty eradication.
With an objective of achieving self-sufficiency in the field of agriculture, the initiative of Green
revolution were introduced during 1960s. The introduction of HYV seeds for the agriculture of
wheat and other grains has given very satisfactory results. Other factors such as agricultural
finance, famines, and irrigation methods were also considered. These efforts boosted the Indian
economy in a great way.
Thus, the importance of Agriculture in Indian economy and society can never be denied.

DESCRIPTION OF METHODOLOGY
Minor crop Areas in India: P Pulses, S Sugarcane, J Jute, Cn Coconut, C Cotton, and T Tea.
The fertile Ganges River Deltaknown for severe flooding and tropical cyclonessupports
cultivation of jute, tea, and rice. Fisheries are both produced and exported from this region.
Agriculture in India has a significant history. Today, India ranks second worldwide in farm
output. Agriculture and allied sectors like forestry and logging accounted for 16.6% of the GDP
in 2007, % of the total workforce and despite a steady decline of its share in the GDP, is still the
largest economic sector and plays a significant role in the overall social-economic development
of India.
India is the largest producer in the world of fresh fruit, anise, fennel, badian, coriander, tropical
fresh fruit, jute, pigeon peas, pulses, spices, millets, castor oil seed, sesame seeds, safflower
seeds, lemons, limes, cow's milk, dry chillies and peppers, chick peas, cashew nuts, okra, ginger,
turmeric guavas, mangoes, goat milk and buffalo milk and meat. India is also the largest
producer of millets like Jowar Bajra and Ragi. It is second only to China in the production of
rice. India is the 6th largest coffee producer in the world It also has the world's largest cattle
population (281 million). It is the second largest producer of cashews, cabbages, cotton seed and
lint, fresh vegetables, garlic, egg plant, goat meat, silk, nutmeg. mace, cardamom, onions, wheat,
rice, sugarcane, lentil, dry beans, groundnut, tea, green peas, cauliflowers, potatoes, pumpkins,
squashes, gourds and inland fish. It is the third largest producer of tobacco, sorghum, rapeseed,
coconuts, hen's eggs and tomatoes. India accounts for 10% of the world fruit production with
first rank in the production of mangoes, papaya, banana and sapota.
India's population is growing faster than its ability to produce rice and wheat.
Initiatives
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 various
schemes to raise investment in marketing infrastructure. Among these schemes are Construction
of Rural Go downs, Market Research and Information Network, and Development /
Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization.
The Indian Agricultural Research Institute (IARI), established in 1905, was responsible for the
research leading to the "Indian Green Revolution" of the 1970s. The Indian Council of
Agricultural Research (ICAR) is the apex body in agriculture and related allied fields, including
research and education. The Union Minister of Agriculture is the President of the ICAR. The
Indian Agricultural Statistics Research Institute develops new techniques for the design of

agricultural 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 the
agriculture program. However the recommendations have had a mixed reception.
Indian agriculture policy
Indian agriculture policy is aimed essentially at improving food self sufficiency and alleviating
hunger through food distribution. Aside from investing in agricultural infrastructure, the
government supports agriculture through measures including 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 from sharp price
falls, to stabilise prices and to ensure adequate food stocks for public distribution. In the past
guaranteed prices have been below the prevailing market prices, according to the International
Food Policy Research Institute (IFPRI) in 2012.At the same time subsidies on farm inputs
including fertilisers, electrical power and irrigation water have led to inefficient use of inputs and
indirectly subsidise income. IFPRI concluded that support for agriculture (from 1985-2002) has
been largely counter cyclical to world prices.
Problems
Cotton flower in India. This is the main cash crop in Vidarbha region.
"Slow agricultural growth is a concern for policymakers as some two-thirds of Indias people
depend on rural employment for a living. Current agricultural practices are neither economically
nor environmentally sustainable and India's yields for many agricultural commodities are low.
Poorly maintained irrigation systems and almost universal lack of good extension services are
among the factors responsible. Farmers' access to markets is hampered by poor roads,
rudimentary market infrastructure, and excessive regulation."World Bank: "India Country
Overview 2014"
The low productivity in India is a result of the following factors:

According to the World Bank, Indian Branch: Priorities for Agriculture and Rural
Development", India's large agricultural subsidies are hampering productivity-enhancing
investment. Overregulation of agriculture has increased costs, price risks and uncertainty.
Government intervenes in labour, land, and credit markets. India has inadequate
infrastructure and services. World Bank also says that the allocation of water is
inefficient, unsustainable and inequitable. The irrigation infrastructure is deteriorating.
The overuse of water is currently being covered by over pumping aquifers, but as these
are falling by foot of groundwater each year, this is a limited resource.

Illiteracy, general socio-economic backwardness, slow progress in implementing land

reforms and inadequate or inefficient finance and marketing services for farm produce.

Inconsistent government policy. Agricultural subsidies and taxes often changed without
notice for short term political ends.

The average size of land holdings is very small (less than 20,000 m) and is subject to
fragmentation due to land ceiling acts, and in some cases, family disputes. Such small
holdings are often over-manned, resulting in disguised unemployment and low
productivity of labour.

Adoption of modern agricultural practices and use of technology is inadequate, hampered

by ignorance of such practices, high costs and impracticality in the case of small land
holdings.

Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of the land was
irrigated in 200304, which result in farmers still being dependent on rainfall, specifically
the Monsoon season. A good monsoon results in a robust growth for the economy as a
whole, while a poor monsoon leads to a sluggish growth. Farm credit is regulated by
NABARD, 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 to
an alarming drop in aquifer levels.

Indian agriculture began by 9000 BC as a result of early cultivation of plants, and domestication
of crops and animals. Settled life soon followed with implements and techniques being
developed for agriculture. Double monsoons led to two harvests being reaped in one year. Indian
products soon reached the world via existing trading networks and foreign crops were introduced
to India. Plants and animalsconsidered essential to their survival by the Indianscame to be
worshiped and venerated.
The middle ages saw irrigation channels reach a new level of sophistication in India and Indian
crops affecting the economies of other regions of the world under Islamic patronage. Land and
water management systems were developed with an aim of providing uniform growth. Despite
some stagnation during the later modern era the independent Republic of India was able to
develop a comprehensive agricultural program
Agriculture in India is a major economic sector and it creates plenty of employment
opportunities as well.
Scenario of India Agriculture
India agriculture has an extensive background which goes back to 10 thousand years. At present,
in terms of agricultural production, the country holds the second position all over the world. In
2012, agriculture and other associated industries such as lumbering and forestry represented

around 16.6% of the Gross Domestic Product of the country. In addition, the sector recruited
about 52% of the entire manpower.
Regardless of the fact that there has been a gradual slump in its contribution to the gross
domestic product of the country, India agriculture is currently the biggest industry in India. On
the whole, it has a key role in the socioeconomic growth of the country.
In terms of agricultural contribution, the following states in India are the most developed states:

Punjab

Uttar Pradesh

Madhya Pradesh

Haryana

Bihar

Andhra Pradesh

Maharashtra

West Bengal

All these states play a key role in the agrarian development of India.
The total arable territory in India is 1,269,219 km2, which represents about 56.78% of the overall
land zone of the country. Arable land in India is diminishing because of continuous strain from
an ever-increasing number of inhabitants and growing urbanization.
The overall water surface area of the country is 31440 km2 and the country experiences a mean
yearly precipitation of 1,100 mm. Irrigation represents 92% of the consumption of water and in
1974, it was 380 km2. By 2025, the capacity will probably increase to 1,050 km2, with the
equilibrium justifying both household and industrial usage.
Agricultural Products in India
India ranks first in producing the following agricultural outputs:

Anise

Fresh fruit

Badian

Fennel

Tropical fresh fruit

Coriander

Pigeon peas

Jute

Spices

Pulses

Castor oil seed

Millets

Safflower seeds

Sesame seeds

Limes

Lemons

Dry chillies and peppers

Cow's milk

Cashew nuts

Chickpeas

Ginger

In addition, the country also ranks as the top producer of millets such as Bajra, Jowar, and Ragi.
In terms of rice production, India holds the second position after China.

About 10% of the fruits produced in the world are produced in India. India holds the first
position in the world in producing the following fruits:

Papaya

Mangoes

Sapota

Banana

India holds the third rank in the world in the production of the following:

Sorghum

Tobacco

Coconuts

Rapeseed

Tomatoes

Hen's eggs

By coffee production, India holds the sixth rank in the world.

India houses the biggest number of livestock in the world and the count is 281 million. In 2008,
the country housed the second biggest number of cattle in the world and the count was 175
million livestock.
The population of India is increasing at a faster pace than its capacity to produce wheat and rice.
India holds the second position in production of wheat, rice, cotton, sugarcane, and groundnuts.
It is also the second biggest harvester of vegetables and fruit, representing 8.6% and 10.9% of
the overall vegetable and fruit production in the world correspondingly.

The country is the top producer of jute, milk, and pulses and holds the second rank in the
production of silk and it is the biggest consumer of silk in the world. In 2005, the country
produced 77,000 million tons of silk.

What are the initiatives taken by Government for India Agriculture

In a huge country like India, the necessary extent of outlay for the expansion of merchandising,
warehousing, and cold storage arrangement is expected to be massive.
The Government of India has been earnestly trying to put into operation different plans to
increase investment or outlay in merchandizing and commercializing. Some of the known plans
and strategies of the Indian Government include the following:

Market Research and Information Network

Construction of Rural Godowns

Grading and Standardization

Development/Strengthening of Agricultural Marketing Infrastructure

The Indian Council of Agricultural Research (ICAR) is the principal authority in farming and
ancillary industries, which comprise learning and research.
The post of the President of the ICAR is held by the Union Minister of Agriculture and at
present, Mr. Sharad Pawar is holding the position.
The Indian Agricultural Research Institute (IARI) was set up in the year 1905. The institute had a
key role in the studies and explorations that resulted in the Green Revolution in the decade of the
1970s. The Indian Agricultural Statistics Research Institute formulates new methods for the
planning of agricultural testing. It also evaluates information associated with cultivation and
offers expert advices in statistical methods for livestock and tree raising.
Of late, the Government of India has established Farmers Commission to fully assess the
cultivation plan. Nonetheless, the suggestions received varied responses.
Other interesting facts about India Agriculture
India enjoys the second position all over the world in terms of agricultural production. During
the period of 2009-10, farming and associated industries such as lumbering, forestry, and fishing
represented approximately 15.7% of the Gross Domestic Product of the country. These industries
also recruited 52.1% of the overall manpower of India.
Outputs on a unitary basis for every type of harvest have increased from 1950. This has been
possible since the government has put particular focus on farming operations in the five-year
plans (Panchabarshiki Parikalpana) and stable developments in the domains of engineering
science, irrigation, implementation of contemporary farming operations, and supply of
cultivation loans and grants after the Green Revolution took place in the country.

Nonetheless, worldwide evaluative studies disclose that the mean agricultural output in the
country is typically 30%-50% of the maximum average output in the world.

Analysis Of Agriculture In India

A 2003 analysis of Indias agricultural growth from 1970 to 2001 by the Food and Agriculture
Organisation identified systemic problems in Indian agriculture. For food staples, 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% per annum. Corresponding
analyses for the index of total agricultural production show a similar pattern, with the growth rate
for 1994-2000 attaining only 1.5% per annum.
India has very poor rural roads affecting timely supply of inputs and timely transfer of outputs
from Indian farms. Irrigation systems are inadequate, leading to crop failures in some parts of the
country because of lack of water. In other areas regional floods, poor seed quality and inefficient
farming practices, lack of cold storage and harvest spoilage cause over 30% of farmer's produce
going to waste, lack of organised retail and competing buyers thereby limiting Indian farmer's
ability to sell the surplus and commercial crops.
The Indian farmer receives just 10% to 23% of the price the Indian consumer pays for exactly
the same produce, the difference going to losses, inefficiencies and middlemen. Farmers in
developed economies of Europe and the United States receive 64% to 81%
Although India has attained self-sufficiency in food staples, the productivity of its farms is below
that of Brazil, the United States, France and other nations. Indian wheat farms, for example,
produce about a third of the wheat per hectare per year compared to farms in France. Rice
productivity in India was less than half that of China. Other staples productivity in India is
similarly low. Indian total factor productivity growth remains below 2% per annum; in contrast,
China's total factor productivity growths is about 6% per annum, even though China also has
smallholding farmers. Several studies suggest India could eradicate its hunger and malnutrition
and be a major source of food for the world by achieving productivity comparable with other
countries.
By contrast, Indian farms in some regions post the best yields, for sugarcane, cassava and tea
crops. Crop yields vary significantly between Indian states. Some states produce two to three
times more grain per acre than others. The table compares the statewide average yields for a few
major agricultural crops in India, for 2012-2015.
Average farm yield in
Bihar
kilogram per hectare
Wheat
2020
Rice
1370
Pulses
610
Oil seeds 620
Sugarcane 45510
Crop

Average farm yield in

Karnataka
kilogram per hectare
unknown
2380
470
680
79560

Average farm yield in

Punjab
kilogram per hectare
3880
3130
820
1200
65300