Agriculture is important for Indian economy and society for multiple reasons. It employs more than 50% of the working population. it is not just a profession but a way of life for the Rural India. Considering its importance, India has to look for ways to convert agriculture from a sector employing the unskilled and the uneducated to a sector contributing significantly towards India’s GDP, exporting its produce and becoming a leader in R&D of farming.
There are multiple ways in which agriculture can be modernised to utilize its potential in India. The first step towards improving agriculture in India is to improve the condition of the tiller. More than 85% of farmers in India are still marginal farmers with land holding so small that they cannot follow advanced technology or export their produce. If FPOs and Farmer cooperatives like AMUL can be multiplied in every corner of the country, the condition of farmers and farming can be improved. The productivity of major food crops like wheat and rice is double in China, when compared with India. Marginal landholdings, less use of technology, deteriorating condition of farmers, lack of R&D are the major reasons behind low productivity.
The second step in achieving possibilities in agriculture is to open the private sector so that modernization of agriculture can happen at industrial level. Contract farming can be useful, if regulated well by an independent regulatory body. This will reduce the risk of sales for farmers and increase agriculture exports for the country.
The biggest problem in agriculture in India is dependence on weather and monsoon. There are two solutions here. Firstly, modern techniques like Greenhouse farming, aquaculture and hydroponics can overcome the dependence on weather changes. Secondly, modern irrigation techniques like drip irrigation, sprinkler irrigation can overcome dependence on monsoons. More than 50% agriculture in India is still rainfed. This affects productivity and production year after year.
Financial freedom is a major constraint for small farmers in India. Considering that 85% farmers are marginal, accessibility of finance is still a major constraint for most farmers. Schemes like Priority sector lending (PSL) and Kisan credit card (KCC) need to be taken to every farmer of the country so that financial exploitation of farmers can be eliminated.
Food processing provides backward and forward linkage to agriculture, increasing its value at every level. Most developed nations purchase food products from developing countries, process it and sell it back to the entire world, earning through value addition. India can enhance the value of its agriculture by creating a strong food processing sector. Many NGOs are already working in this direction but the speed of food processing is still limited in the country.
Agriculture is the backbone of India due to dependence of our people on it and the food security that India needs to feed its 1.4 billion population. With the right financial and strategic support, it can be transformed into a major contributor towards India’s growth story.
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India is an agrarian economy and the agriculture sector is one of the major contributors to the GDP of the country, contributing about 16.8% to GDP. Nearly two-thirds of India’s rural households and 50% of total workforce depends directly on agriculture for its livelihood. It meets the food requirements of the people and produces several raw materials for industries. India has achieved Food Security due to sustained growth in agriculture production. The agricultural produce forms a major chunk in the list of exports as well.
Despite the significance of agriculture, it has been largely ignored by the successive governments and thus faces many challenges. More than 50% of agriculture land is still dependent on monsoon. The average landholding of farmers in India stands at 1.08 hectares, among the lowest in the world. Small landholdings are economically unviable. India has achieved Food security at the cost of Nutritional Security due to obsolete farming techniques. Covid-19 has proven that agriculture is still the backbone of Indian Economy.
India needs to take several measures to maximise the possibilities of agriculture and improve the condition of farmers:
Opportunities in Financial Inclusion- Agriculture is the major driver of rural demand in India because majority of rural households are still dependent on agriculture for their livelihood. The Financial sector in India can grow immensely by bringing these households within the formal financial system. It can also help in reducing farmer suicides that are largely a product of exploitation by moneylenders. With higher flow of Finances, the agriculture sector can also grow faster. Various schemes like PM Jan Dhan Yojana, Kisan Credit Card (KCC) and PM Fasal Bima Yojana have been launched for Financial Inclusion but there is a need to work on Land Reforms and Farmer’s Income Enhancement through the Financial System.
Organic Farming- Organic Farming has become the new gold of exports due to a rise in focus on health and falling nutrition in conventional farming products. Paramparagat Krishi Vikas Yojana is the scheme which motivates groups of fifty or more farmers to switch to organic farming. Due to spatial diversity and existence of old methods of farming, India still has a lot of potential to grow and export organic products to the world markets. In-stead of running after HYV seeds and Fertilizers, India can focus on High Tech Organic farming to become a world leader in Agriculture in the future.
Food Processing Industry- In 2017-18, the food processing industry accounted for 7.9 per cent of manufacturing GVA and 9.5 per cent in agricultural value added. It is also a major employment provider, contributing to 11.4 per cent of organised manufacturing employment. There is immense potential to create forward linkages of agriculture with Industries by processing raw materials and increasing their value. Through food processing, the wastage of agriculture products can also be reduced, which presently stands at 35% of gross produce. Farmer Producer Organizations (FPOs) are contributing towards creation of Food processing companies in the vicinity of agriculture areas but we need to work on a mission mode to become a world leader in Food processing.
Building proper infrastructure in rural areas- We need to focus on building the infrastructure of the rural sector such as connecting roads, market yards, and storage facilities. These will help in saving a lot of overhead costs. Infrastructure development in rural areas will also provide non-agriculture livelihood to the unemployed. It will also reduce rural-urban migration by fulfilling the vision of Dr APJ Abdul Kalam- “Provision of Urban Amenities in Rural Areas (PURA)”
Crop Insurance- Instead of providing subsidies to the farmers on water and electricity, a better option could be to provide subsidies on the premium and do with the capping in the case of the crop insurance. This will encourage the farmers to adopt innovative technologies, enhance crop productivity, and they will be more willing to take risks. This will encourage farmers to come together to pool up their resources and the premium rates will automatically fall. A robust crop insurance is the best way to deal with risks associated with the agriculture sector.
Educating the farmers about sustainable agriculture- The need of the hour is the incorporation of sustainable practices in the agriculture sector. Being one of the core sectors of Indian economy, the agriculture sector needs to regularise and update itself. The farmers need to be taught about the alternatives in order to make better use of the available resources. The focus must be on increasing the productivity of the land and irrigation. Piped conveyance, better off-farm management of water, use of better water management practices such as drip irrigation and rain water harvesting should be done. The farmers need to focus on utilisation rather than exploitation of ground water resources. They must be encouraged to grow higher value commodities, especially in the areas which receive high rainfall. Crop diversification and soil health are other important factors. The farmers must be encouraged to follow the practice of organic farming and refrain from the use of DDT, pesticides, and insecticides. This will be helpful in maintaining the health of the soil and getting better yields.
Poverty alleviation and community actions: While agricultural growth will, in itself, provide the base for increasing incomes, for the 170 million or so rural persons that are below the poverty line, additional measures are required to make this growth inclusive. For instance, rural livelihood program empowers communities to become self-reliant. This program promotes the formation of self-help groups, increases community savings, and promotes local initiatives to increase incomes and employment. Through this, the poor farmers gain the strength to negotiate better prices and market access for their products, and also gain the political power over local governments to provide them with better technical and social services.
Major upcoming challenges include Climate change and more extreme events like droughts, floods, erratic rains, etc. They are expected to have greatest impact in rain-fed areas. The watershed program, allied with initiatives from agricultural research and extension, may be the most suited agricultural program for promoting new varieties of crops and improved farm practices. But other thrusts, such as the livelihoods program and development of off-farm employment may also be key. To achieve agricultural reform, Indian government also needs to provide support in case of land, bank loans and other machineries to the small farmers along with the big farmers as it would bring much improvement in Indian economy