2. Introduction and background on
Indian Agriculture
India ‘s population is 1.21 billion in 2011. 67% are rural.
Majority are in agriculture.
Importance of agriculture in Indian economy. Although
it contributes only 15% of GDP, the share of workers is
about 55%.
Marginal and small farmers dominate
Major crops are rice, wheat, maize, coarse cereals,
groundnut, cotton, sugarcane, fruits and vegetables
60% of cultivated area is rainfed as only 40% of area is
under irrigation.
Rural poverty is 41%in 2004-05.
Agriculture is a ‘State Subject’. In other words, the
policies of provinces are also important
3. Performance of Agriculture
Growth performance in agriculture%)
1950-1 to 1964-5: 2.51 (area gro. +yield gro)
1967-8 to 1980-1: 2.20 (yield gr. green revol)
1980-1 to 1990-1: 3.07 (spread of green rev)
1992-3 to 2004-5: 2.76 (reform period)
1997-8 to 2004-5: 1.60 (neglect of agri.)
2004-5 to 2010-1: 3.47 (revival of growth)
The policy, institutional and investment focus during green
revolution time helped India achieve its food self sufficiency
goals.
However, now different policies are needed to focus on small
holdings, rainfed areas, women, lagging regions, rural non-
farm for sustainable agricultural transformation
4. Agriculture accounts for almost 60 per cent of aggregate
employment in India. Employment in agriculture is rural-
based (97 percent); but it is depressing to note that in the
rural sector the rate of growth of agricultural employment
is abysmally low (0.01 per cent4 ) and was insignificant
during the ‘90s. The corresponding growth during the ‘80s
was moderate and significant (1.18 per cent). The decade of
80s and 90s frequently referred in the present discussion
strictly refers to periods 1983-93 and 1993-99, respectively.
These are in fact the years for which NSSOs quinquennial
survey results based on a large sample is available5 for
employment. With increased pressure on land, the role of
allied activities increases but the annual compound growth
rate (ACGR).
EMPLOYMENT IN AGRICULTURE
6. Use of machines on farms. Now a farmer can cultivate on
more than 2 acres of land with less labor, and can cut costs
even more when they are looking for a used tractor and other
harvesting technology, versus new equipment. The use of
planters and harvesters makes the process so easy.
Modern transportation: This helps in making products
available on markets in time from the farm. With modern
transportation, consumers in Dubai will consume a fresh
carrots from Africa with in the same day that carrot lives the
garden in Africa.
Irrigation of plants. In dry areas like deserts, farmers have
embraced technology to irrigate their crops. A good example is
in Egypt, were farmers use water pumps to collect water from
river Nile to their crops. Most of these farmers grow rice which
needs a lot of water, so they manage to grow this rice using
irrigation methods enhanced by advanced technology.
12. Scheme By Government
Agricultural Technology Management Agency
(ATMA)
Small Farmers Agribusiness Consortium (SFAC)
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
Paramparagat Krishi Vikas Yojana (PKVY)
13. India GDP From Agriculture
• GDP From Agriculture in India decreased to 3095.38 IND Billion in
the third quarter of 2016 from 3743.90 IND Billion in the second
quarter of 2016.
• GDP From Agriculture in India averaged 3899.02 IND Billion from
2011 until 2016, reaching an all time high of 5217.45 IND Billion in
the fourth quarter of 2013 and a record low of 2715.05 IND Billion
in the third quarter of 2011.
14. As per Union Budget 2016-17, the major focus would be on
doubling farmers income by 2022. Other than that, the
government would increase expenditure in farm and rural
sector, infrastructure sector, social sector and also work on
employment generation.
To establish a Long Term Irrigation Fund, under NABARD,
an initial collection of nearly USD3.06 billion has been
planned in Union Budget 2016-17. A multilateral funding
of around USD0.92 billion to execute various program’s
related to sustainable management of ground water
resources.
As per Union Budget 2016-17, allocation of USD76.38
million was made, to enhance production of pulses, under
National Food Security Mission in around 622 districts of
the country.
15. Agribusiness
Agribusiness is the business of agricultural production.
It includes agrichemicals, breeding , crop production
(farming and contract farming),farm machinery
and seed supply, as well as marketing and retail sales.
All agents of the food and fiber value chain and those
institutions that influence it are part of the agribusiness
system.
16. New Innovative Agriculture Business Ideas in 2017
Rice Cultivation
Vegetable Farming
Groundnut Cultivation
Fruits Plantation
Mushroom Farming
Herbs and Flower Farming
Pig Farming
Air Fresheners and Perfumes
17.
18. Steps taken by the government
Crop Insurance Policy
Easy availability of capital or investment input
Introducing the MSP policy
Subsidy in using capital intensive technology
Land reforms
Institutional credit increased
PDS & TPDS
19. Food processing
MEANING:
Transformation of raw ingredients, by physical or
chemical means into food.
Food processing typically involves activities such
as mincing, emulsification, and cooking (such as
boiling, broiling, frying ,or frilling), pickling ,
pasteurization and many other kinds of preservation;
and canning or other packaging.
20. Pros & Cons
Benefits Drawbacks
Easy TRF of delicate perishable product Impacts nutritional density
Help elevate food shortage Food preservatives & additives are used
Mass production is cheaper Artificial flavors damages health
Reduced time in preparing the food Risk of contamination is present
Easy availability at all times
Frequent intake of such food degrades
mental health
21. Food processing has potential to turnaround whole
economy. Indian economy is still agrarian, because about
55% population is directly dependent upon agriculture. FPI
directly targets farming sector as it attempts to create more
types of products out of single crop. This will increase
demand for farmers and hence more remunerative prices.
India’s demographic dividend is much talked about and
most of this lies in rural India. Indian youth is turning away
from agriculture because of low profitability. FPI is perhaps
best bet to seize opportunity of demographic dividend. It can
give us a genre of progressive rural entrepreneurs.
Prosperous countryside will have multiplier positive impact
on socio-economic and political problems. In short, FPI can
narrow gap between rural and urban India.
22. FPI is employment intensive industry; it can be an
answer to jobless growth of past decade. Currently, only 3
% of employment is in FPI, while in developed countries it
handles 14% population. Again, much of the employment
will be created into rural India. This can remedy problem
of distress migration. Growth in direct employment in the
organized food processing sector stands at 6 % between
2011-12.
23. Improving the sector
Agriculture Education
Provide adequate diesel, electricity and water at
subsidized rates
Encourage crop rotation
Multi crop farming
Encourage cooperative farming
Relaxed credit terms
24.
25. If we look at the challenges faced by Indian agriculture, we can broadly
group them into two categories. One category belongs to the problems
that have been long standing. Second category of problems is new and has
been emerging from the prevailing agricultural practices, system, changing
climate and economy. Let us discuss the major challenges in detail:
•Stagnation in Production of Major Crops:
Production of some of the major staple food crops like rice and
wheat has been stagnating for quite some time. This is a situation which is
worrying our agricultural scientists, planners and policy makers. If this
trend continues, there would be a huge gap between the demand of ever
growing population and the production
•High cost of Farm Inputs:
Over the years rates of farm inputs have increased manifold. Farm
inputs include fertilizer, insecticide, pesticides, HYV seeds, farm labour
cost etc. Such an increase puts low and medium land holding farmers at a
disadvantage.
.
26. • Soil Exhaustion:
On one hand green revolution has played a positive role in reducing hunger
from India. On the other hand it has also led to negative consequences. One of
which is Soil exhaustion. Soil exhaustion means loss of nutrients in the soil from
farming the same crop over and over again. This usually happens in the rain forest.
• Depletion of Fresh Ground Water:
The second major negative consequence of green revolution is depletion of
fresh ground water. You would remember that areas where green revolution was
successful, it was due to the use of chemical fertilizers and irrigation. Most of the
irrigation in dry areas of Punjab, Haryana and Western Uttar Pradesh was carried
out by excessive use of ground water. Today fresh ground water situation in these
states is alarming. In the coming few years if this type of farming practice
continues, these states are going to face water famine.
• Impact of Globalisation:
You can see the effect of globalisation on the farm sector in India. All
developing countries have been affected by it. The most evident effect is the
squeeze on farmer’s income and the threat to the viability of cultivation in India.
This is due to the rising input costs and falling output prices. This reflects the
combination of reduced subsidy and protection to farmers. Trade liberalization
exposes these farmers to competition from highly subsidized production in the
developed world.
28. •Agri machinery
India is the largest manufacturer of tractors in the world. Power
tillers are gaining popularity especially for lowland flooded rice fields
and hilly terrains. Manually operated tools, animal-operated
machines, and mechanical - or electrical - operated machinery are
some examples, which are slowly increasing in demand. Innovation
and technology in the Indian agricultural machinery industry can
take the industry to greater heights, keeping pricing in mind.
•Cold chain sector
Due to India being an agricultural-based economy, wastage is a
concern and so the government with the help of U.S. technology is
developing the cold chain sector. Therein lies an opportunity for
those looking to invest in this sector with improved storage and
transportation techniques.
29. •Food processing sector
India has an abundant supply of food yet only a small portion of these
foods is processed. Nevertheless, this industry is still one of the
highest in the country. Advanced methods of food processing are still
to be introduced into this country. Though some top global players
such as Nestle and PepsiCo have presence in India, there is still huge
potential in the Indian food processing and packaging industry.
•Poultry sector
There is high demand for poultry and this poses as a great target for
consumers due to their increasing income rates. This sector prides
itself in being one of the largest producers of eggs and poultry meat.
Innovation and advancement by foreign companies can further boost
sector production and raise industry standards.