Agricultural Sector in India

Learning Outcomes:

1. Understanding the central role of agriculture in India’s economy and employment.
2. Comprehending the structure and evolution of agricultural policy across various Five-Year Plans.
3. Identifying key agricultural reforms, programs, and initiatives in India.
4. Recognizing India’s position in global agricultural production.

Agriculture’s Role in India
Agriculture is the backbone of India’s economy, occupying about 43% of its geographical area and providing livelihood to over 58% of rural households. As of 2011-12, agriculture employed 48.9% of the workforce. Its GDP contribution was 17.4% in 2015-16 and 15.2% in 2016-17. This sector accounts for more than 90% of the total unorganized labor force.

Characteristics of Indian Agriculture

1. Largest Employment Provider: Agriculture is the most crucial employment source, ensuring sustenance for rural households.
2. Basis for Industrial Development: Provides raw materials like cotton, sugarcane, and oilseeds for industries such as textiles and oil-processing. Capital goods industries rely on agricultural sector demands.
3. Support for Tertiary Sector: Facilitates internal trade in agricultural produce, ensuring transport services gain bulk business by moving goods.
4. Contribution to Foreign Trade: Plays a significant role with exports like jute, tea, coffee, and spices while importing agricultural equipment such as fertilizers.
5. International Importance: India is the top producer of coconuts, mangoes, and milk and ranks second in rice, wheat, and cotton production.

Five-Year Plans and Agricultural Development
India’s approach to agricultural growth has been shaped by its Five-Year Plans:

1. 1st Plan (1951-56): Prioritized solving the food crisis with an outlay of over 14%, achieving a 2.71% growth rate.
2. 2nd Plan (1956-61): Reduced focus on agriculture with an 11.7% allocation, resulting in 3.15% growth.
3. 3rd Plan (1961-66): Introduced Intensive Agricultural District Programme (IADP) and High Yielding Variety Programme (HYVP), but growth fell to 0.73%.
4. 4th Plan (1969-74): Promoted science and technology in agriculture, achieving 4.16% growth.
5. 5th Plan (1974-79): Exceeded foodgrain targets; agricultural growth was 3.28%.
6. 6th Plan (1980-85): Achieved 4.3% growth with the year 1983-84 marked as the “Second Green Revolution.”
7. 7th Plan (1985-90): Allocated 6% to agriculture; growth was 3.47%, missing most targets.
8. 8th Plan (1992-97): Registered 4.68% growth owing to favorable weather.
9. 9th Plan (1997-2002): Failed to meet targets, growth fell to 2.02%.
10. 10th Plan (2002-07): Adopted the National Agricultural Policy (NAP), resulting in 2.3% growth.
11. 11th Plan (2007-12): Average growth was 3.6%, with substantial improvements.
12. 12th Plan (2012-17): Targeted 4% growth but faced challenges like climate change and shrinking land.

Important Concepts and Notes:

• The 12th Plan emphasizes public-private partnerships, institutional credit distribution, and soil quality improvement for sustainable agriculture.

Green Revolution in India
India’s Green Revolution in the 1960s introduced high-yield seeds, fertilizers, and irrigation, making India self-sufficient in food grains. However, it had drawbacks:

1. Environmental Impact: Overuse of fertilizers and pesticides damaged soil health and water resources.
2. Resource Depletion: Excessive water and soil nutrient exploitation raised input costs.

Second Green Revolution focuses on:

1. Enhancing yields in Eastern India.
2. Promoting organic farming.
3. Developing drought-resistant crops.
4. Expanding credit availability.
5. Improving soil quality through rainwater harvesting.

Evergreen Revolution
Conceptualized by Dr. M.S. Swaminathan, it emphasizes sustainable agricultural practices using integrated pest management and resource management.

Agricultural Revolutions and Schemes

Key Agricultural Policies and Programs

1. National Food Security Act (2013): Provides subsidized food grains to 75% of rural and 50% of urban populations.
2. Pradhan Mantri Fasal Bima Yojana: Crop insurance for farmers against natural calamities with uniform premiums.
3. Kisan Credit Card (KCC) Scheme: Provides timely credit to farmers for cultivation needs.
4. National Horticulture Mission: Ensures the holistic development of the horticulture sector.
5. Rashtriya Krishi Vikas Yojana (RKVY): Promotes public investment for agriculture with national priority sub-schemes like Green Revolution in Eastern India.

Agricultural Inputs and Infrastructure
Agricultural productivity relies on quality seeds, fertilizers, and irrigation. The government initiatives include:

1. National Seed Policy (2002): Promotes the use of certified seeds and regulates seed distribution.
2. Fertilizer Subsidy: Ensures affordable fertilizers to farmers to encourage intensive cultivation.
3. Irrigation Programs:

• Pradhan Mantri Krishi Sinchai Yojana (PMKSY): Enhances irrigation coverage and water efficiency.
• National Mission on Micro Irrigation: Aims to bring 2.85 million hectares under micro-irrigation systems.

Public Distribution System (PDS)
The PDS is essential for food security, distributing food grains like wheat, rice, and sugar to the poor. It operates jointly between the Central and State Governments and includes sub-schemes:

1. Revamped PDS (RPDS): Focuses on strengthening distribution in remote areas.
2. Targeted PDS (TPDS): Introduced in 1997 to specifically target BPL (Below Poverty Line) households.

Agricultural Finance
Agricultural credit in India is managed through a multi-agency network, including:

1. Cooperative Credit Societies: Operate at the village, district, and state levels to offer short-term loans.
2. Commercial Banks: Post-nationalization, they became significant players in agricultural lending.
3. Regional Rural Banks (RRBs): Established to supplement cooperative and commercial banks, focusing on small and marginal farmers.
4. NABARD: Apex development bank facilitating credit for agricultural and rural development.

Key Schemes for Farmer Welfare

1. PM Kisan Samman Nidhi Yojana: Provides financial support to small and marginal farmers.
2. KUSUM Scheme: Promotes solar power production to support irrigation.
3. Gobardhan Yojana: Focuses on waste management and energy generation using cattle dung.

Agricultural Marketing

1. APMC Acts: Agricultural Produce Market Committees govern agricultural marketing in states, creating barriers to free trade.
2. National Agriculture Market (NAM): An e-platform to integrate markets across India, enhancing transparency and farmer income.

Important Note: National Agriculture Market (NAM) launched in 2016, aims to unify agricultural markets to increase price realization for farmers.

Comparative Table of Major Schemes

Agricultural Exports and Market Regulation
India has set goals to double agricultural exports from the current $30 billion to $60 billion by 2022. Market regulation is overseen by:

1. Forward Markets Commission: Regulates commodity futures trading.
2. Price Mechanisms: Implements Minimum Support Prices (MSP) and Procurement Prices to ensure farmers get fair returns.

• Key Concept: Price Fixation in agriculture involves MSP, procurement prices, and CIP (Central Issue Prices) to stabilize farmers’ income.
• National Land Records Modernisation Programme (NLRMP) aims to digitize land records, minimizing disputes and enhancing transparency.

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Agricultural Challenges**

1. Land Fragmentation: Smallholdings reduce farming efficiency.
2. Water Scarcity: Increasing pressure on water resources.
3. Climate Change: Adversely impacts agricultural productivity.

Agricultural Insurance Schemes

• NAIS: National Agricultural Insurance Scheme provides coverage for crop losses.
• MNAIS: Modified NAIS offers improvements based on previous learnings.
• Weather-Based Crop Insurance: Protects against weather-induced crop failures.

Note: Agriculture accounted for 17.4% of India’s GDP in 2014-15, emphasizing its critical role despite a decreasing trend in percentage terms.

MCQ: Which revolution focuses on sustainable agricultural practices emphasizing organic agriculture?

1. Green Revolution
2. Evergreen Revolution
3. Blue Revolution
4. White Revolution
   Answer: 2. Evergreen Revolution

This comprehensive view of India’s agricultural sector illustrates its multifaceted role in the economy, encompassing employment, industrial raw material supply, and food security. Government policies, schemes, and Five-Year Plans continue to shape and sustain agriculture’s evolving landscape.