MODULE 2

AGRICULTURAL SECTOR – ISSUES

The agriculture sector plays a significant role in the Indian economy. Around 60% of the total
Indian population is engaged in agriculture, contributing about 18% of the country’s GDP. Farmers
are plagued by several issues. These directly or indirectly affect the farmer’s life. From
procurement of inputs to marketing and post-harvest activities, farmers face a lot of challenges.
However, the problems faced by farmers go often unnoticed.
MAJOR PROBLEMS FACED BY FARMERS IN INDIA.
1. Small and Fragmented land holdings:
Indian Agriculture is mainly dominated by small and fragmented land holdings. This makes the
farmers less competent. According to the 10th Agricultural Census in 2015-16, India’s total
operational land holding was 146.45 million hectares and the total operated area was 157.82
million hectares. Among them, marginal and small operational holdings together (0 – 2 ha)
constituted 86.2% of the total operational holdings. Due to this fragmentation of land, farmers do
not generate adequate income. This is because of difficulty in mechanization, practicing usual
agricultural practices like monocropping and products which leads to deterioration of land quality.
This leads to high production costs and low productivity. The root cause of this problem started
due to the inheritance law.
2. Lack of Marketing and Storage facilities:
Problems faced by farmers in agricultural marketing include transportation costs, inadequate
market infrastructure, price fluctuation, lack of proper market information, and the role of
exploiting local traders and middlemen. Lack of storage facilities in rural areas has been a limiting
factor for post-harvest losses. Nearly 16% of fruits and vegetables, 10% of oilseeds, 9% of pulses,
and 6% of cereals produced are being wasted every year due to lack of storage facilities. Since
most of the agricultural produce is perishable, farmers are distressed to sell the produce
immediately after harvest even at lower prices. This gives them a meager income. Insufficient
storage facilities make it difficult for the farmers to meet people’s demands during the off-season.
3. Poor Adoption of Mechanization:
Regardless of the expansion of mechanization in India, most of the agricultural operation is still
done by labourers. The highest level of mechanization in India about 60 – 70% is observed in
plowing, harvesting, threshing, and irrigation. Although machinery has been invented in seeding,
weeding, and other agricultural operations, only a few farmers use it for crop production. Due to
small land holdings, small farmers find it difficult to adopt mechanization. Lack of awareness
among rural farmers and capital constraints create this problem.
4. Credit Availability:
In the agriculture sector, availability and access to timely, adequate, and low-cost credit from
financial institutional sources is more important, especially to marginal and small farmers. Along
with all other inputs, capital is one of the most crucial inputs for increasing agricultural production.
Access to credit is one of the factors influencing farm productivity. Farmers facing capital
constraints would use fewer inputs by not investing in better technologies, machinery, and
equipment in their production activities compared to others having no such constraints. This affects
not only productivity but also the produce quality.
Improved credit access may facilitate optimal use of inputs and have a major impact on crop
productivity. Availability of credit may allow farmers to satisfy their cash needs induced by the
agricultural production cycle and requirements for consumption. Even though governments are
improving agricultural credit policies, regional imbalance in credit distribution is still persistent
over the years.
5. Poor irrigation facilities
80% of water consumption in India is for irrigation in agriculture. Depletion of the groundwater
table is a major factor affecting agriculture. Good irrigation helps farmers to carry out timely
agricultural activities. The steady decline in the groundwater table can be noticed in recent times
due to its over-exploitation as 65% of irrigation uses groundwater sources. In India, irrigation
facilities are limited, and the majority of farmers are still dependent on rainfall. Rainfed agriculture
accounts for about 51% of the net sown area in our country and occupies nearly 40% of total
production.
In the areas under irrigation, farmers mainly follow flood irrigation methods. Even though
microirrigation systems are gaining importance nowadays most of their adopters are large farmers.
Poor farmers are unable to afford it. Out of the total area sown in the year 2021, the net irrigated
area occupies around 68.38 million hectares. Out of which the area under micro-irrigation is only
12.90 million hectares which accounts for only 18.8% of the net irrigated area.
6. Soil fertility depletion
After the Green Revolution in the 1960s, the use of chemical fertilizers has been increased. To get
quicker results, farmers have started using fertilizers excessively. Excessive usage of chemical
fertilizer contributes to reduced organic matter content and humus content, decreased number of
beneficial insects, poor growth, increased pest attacks, and altering of soil pH which ultimately
leads to low productivity.
Imbalanced use of urea leads to soil fertility depletion over a period of time. In the year 2022-23,
urea accounts for more than half of the total fertilizer production (58.4%) total consumption
(57.9%), and 35.9% of imports. Other causes of soil depletion include a lack of proper cropping
systems and continuous cultivation. In India, the total area under the monocropping system during
the year 2015-16 was approximately 52.8 million hectares, which is about 47% of the total cropped
area.
7. Inadequate access to crop insurance schemes
The major problems persistent with crop insurance schemes faced by farmers include lack of
proper awareness of insurance schemes, evaluation of extend of damages caused due to crop losses,
inadequate coverage of insurance schemes and non-payment / delayed settlement of claims.
8. Impact of climate change
Climate change can lead to changes in weather patterns, such as increased frequency and intensity
of extreme weather events like droughts, floods, and storms. These changes can affect soil fertility,
crop yields and livestock production, leading to reduced productivity and income for
farmers. Farmers may need to invest more in pest and disease management practices, which can
increase their costs and reduce their profits. Heat waves can cause heat stress in crops, which
affects the yield especially when they occur during pollination, pod or fruit set. Climate change
can lead to water scarcity in some regions which can affect irrigation and reduce yield. Farmers
may be forced to rely on rain-fed agriculture, which can be more unpredictable and vulnerable to
the effects of climate change.
Unpredictable rainfall affects several agricultural operations and unexpected rainfall during
harvest will lead to total crop loss. Heavy rains that result in flooding can be detrimental to crops
and soil. In India, around 33.9 million hectares of cropped area have been damaged due to hydro-
meteorological calamities including heavy rainfall and floods between 2015-16 and 2021-22.
9. Price volatility:
Price volatility can have a significant impact on the livelihoods of farmers, especially small farmers
who are more vulnerable to market fluctuations. Price volatility can lead to income instability for
farmers as sudden drops in prices can reduce their income and profits. This can make it difficult
for farmers to plan and invest in their farms, leading to a vicious cycle of poverty and low
productivity. This situation creates uncertainty for farmers as they are not sure of the prices they
will receive for their produce in the future. This makes it difficult for farmers to make informed
decisions about what crops to grow, how much to produce, and when to sell their produce.
10. Poor training and extension facilities:
Agricultural extension programmes help farmers by means of transfer of technology, assisting
farmers in problem-solving and contributing to rural development. But extension system in India
is not equally balanced. Without adequate training and access to extension services, farmers may
not be aware of the latest farming practices, techniques and technologies that can help them to
increase crop yields. This results in reduced yield, which can affect farmer’s income.
Lack of training and extension services can make farmers vulnerable to pests and diseases that can
cause reduced yield. Without access to information on how to prevent or mitigate these risks, losses
are incurred. Farmers may not have knowledge of recent schemes, financial assistance and how to
access the financial resources to invest and increase their yield due to lack of training and extension
activities.
11. Limited spending on R&D by Government:
Limited spending on research and development (R&D) by Government have a negative impact on
farmers in agriculture including reduced productivity, increased costs, and reduced profitability. If
Government spending on R&D is limited, then farmers may not have access to new technologies
and practices, improved crop varieties, leading to reduced productivity and competitiveness in the
market. Government investing less in R&D may force farmers to invest their own resources in
adapting to changing conditions which can be expensive. This may increase the production cost,
making it difficult for farmers to compete in the marketplace

LAND OWNERSHIP PATTERNS UNDER THE BRITISH RULE

PERMANENT SETTLEMENT OF BENGAL/ ZAMINDARI SYSTEM
Lord Cornwallis introduced the Permanent Settlement in 1793. Under this system, a class of
landlords called Zamindars was created whose responsibility it was to pay a fixed rent to the
government for the lands they owned. They gave out parcels of land to farmers who became their
tenants. Their title to the land was hereditary. What was intended as a system beneficial for all
parties concerned soon turned out to be exploitative? The State was only concerned with
maximising revenue with minimum effort. The Zamindar too wanted maximum rent from his
tenants irrespective of the land’s true potential. He could increase his own wealth by extracting
most out of his farmer tenants since his due to the State was fixed. In addition, several layers of
intermediaries were created between the Zamindar and the tenants adding to the burden. The
landless farmers and labourers suffered greatly in poverty. Also, this led to the creation of a group
of rich Indians whose loyalty lay largely with the British.

Objectives of Land Reforms

The Indian government aimed at speeding up the socio-economic advancement of rural India and
its agricultural industries with this land reform system. Some of the main objectives of Land
Reforms are listed below-
 
The primary objective concerned an overall renewal of law structure for agricultural lands
in India.
 These acts aimed at an equal and uniform distribution of agricultural lands so that
concentration of ownership was not in few hands.
 Abolition of intermediaries of the medieval land-ownership system in India.
 Facilitating optimum agricultural produce with healthy and economic practices.
 Ensuring social and economic justice for previous violations of the tiller’s rights.
 Uniform ownership of land would prevent exploitation of tenant farmers and will help in
reducing rural poverty.
 Elimination of the exploitation in the Land relations.
 To increase agricultural production and infuse equality in society.
 To restructure the agrarian relations in order to achieve an egalitarian social structure.
 To realize the age-old goal of Land to the tiller.
GREEN REVOLUTION

The Green Revolution was a period that began in the 1960s during which agriculture in India was
converted into a modern industrial system by the adoption of technology, such as the use of high
yielding variety (HYV) seeds, mechanised farm tools, irrigation facilities, pesticides,
and fertilizers. Mainly led by agricultural scientist M. S. Swaminathan in India, this period was
part of the larger Green Revolution endeavor initiated by Norman Borlaug, which
leveraged agricultural research and technology to increase agricultural productivity in the
developing world.[3] Varieties or strains of crops can be selected by breeding for various useful
characteristics such as disease resistance, response to fertilizers, product quality and high yields.
Under the premiership of Congress leaders Lal Bahadur Shastri and Indira Gandhi,[4] the Green
Revolution within India commenced in 1968, leading to an increase in food grain production,
especially in Punjab, Haryana, and Western Uttar Pradesh. Major milestones in this undertaking
were the development of high-yielding varieties of wheat, and rust resistant strains of wheat. The
long-term effects of the green revolution have been analysed by environmentalists like Vandana
Shiva and others who say that it caused greater environmental, financial and sociological problems
like droughts, rural indebtedness and farmer suicides. Reports have shown soil deterioration from
the use of chemicals which has led to the collapse of agricultural systems in many regions of the
country, and negatively affected the farmers, food and water supply.
A number of people have been recognized for their efforts during India's Green Revolution.
 M. S. Swaminathan, the main architect or the Father of the Green Revolution in India.
 Chidambaram Subramaniam, the food and agriculture minister at the time, a Bharat Ratna, has
been called the Political Father of the Green Revolution.
 Dilbagh Singh Athwal, is called the Father of the Wheat Revolution

 The Green Revolution was an endeavour initiated by Norman Borlaug in the 1960s. He is
known as the 'Father of Green Revolution' in world.

o It led to him winning the Nobel Peace Prize in 1970 for his work in developing High
Yielding Varieties (HYVs) of wheat.
 In India, the Green Revolution was mainly led by M.S. Swaminathan.
 The Green Revolution resulted in a great increase in production of food grains (especially
wheat and rice) due to the introduction into developing countries of new, high-yielding
variety seeds, beginning in the mid-20th century.

o Its early dramatic successes were in Mexico and the Indian subcontinent.
 The Green Revolution, spreading over the period from 1967-68 to 1977-78, changed India’s
status from a food-deficient country to one of the world's leading agricultural nations
Objectives of Green Revolution

 Short Term: The revolution was launched to address India’s hunger crisis during the second
Five Year Plan.
 Long Term: The long term objectives included overall agriculture modernization based on
rural development, industrial development; infrastructure, raw material etc.
 Employment: To provide employment to both agricultural and industrial workers.
 Scientific Studies: Producing stronger plants which could withstand extreme climates and
diseases.
 Globalization of the Agricultural World: By spreading technology to non-industrialized
nations and setting up many corporations in major agricultural areas.
Basic Elements of the Green Revolution

 Expansion of Farming Areas: Although the area of land under cultivation was being
increased from 1947 itself, this was not enough to meet the rising demand.

o The Green Revolution provided assistance in this quantitative expansion of farmlands.

 Double-cropping System: Double cropping was a primary feature of the Green Revolution.
The decision was made to have two crop seasons per year instead of just one.

o The one-season-per-year practice was based on the fact that there is only one rainy
season annually.
o Water for the second phase now came from huge irrigation projects. Dams were built
and other simple irrigation techniques were also adopted.
 Using seeds with improved genetics: Using seeds with superior genetics was the scientific
aspect of the Green Revolution.

o The Indian Council for Agricultural Research developed new strains of high yield
variety seeds, mainly wheat and rice, millet and corn.
 Important Crops in the Revolution:
 o Main crops were Wheat, Rice, Jowar, Bajra and Maize.
o Non-food grains were excluded from the ambit of the new strategy.
o Wheat remained the mainstay of the Green Revolution for years.
Background of Green Revolution in India

 In 1943, India suffered from the world’s worst recorded food crisis; the Bengal
Famine, which led to the death of approximately 4 million people in eastern India due to
hunger.
 Even after independence in 1947, until 1967 the government largely concentrated on
expanding the farming areas.

o But the population was growing at a much faster rate than food production.
 This called for an immediate and drastic action to increase yield. The action came in the form
of the Green Revolution.
 The green revolution in India refers to a period when Indian Agriculture was converted
into an industrial system due to the adoption of modern methods and technology such as
the use of HYV seeds, tractors, irrigation facilities, pesticides and fertilizers.
 It was funded by the US and the Indian Government and the Ford and Rockefeller
Foundation.
 The Green Revolution in India is largely the Wheat Revolution as the wheat production
increased by more than three times between 1967-68 and 2003-04, while the overall increase
in the production of cereals was only two times
Positive Impacts of Green Revolution

 Tremendous Increase in Crop Produce: It resulted in a grain output of 131 million tonnes
in the year 1978-79 and established India as one of the world's biggest agricultural producers.

o The crop area under high yielding varieties of wheat and rice grew considerably during
the Green Revolution.
 Reduced Import of Food-Grains: India became self-sufficient in food-grains and had
sufficient stock in the central pool, even, at times, India was in a position to export food-
grains.

o The per capita net availability of food-grains has also increased.

 Benefits to the Farmers: The introduction of the Green Revolution helped the farmers in
raising their level of income.

o Farmers ploughed back their surplus income for improving agricultural productivity.
 o The big farmers with more than 10 hectares of land were particularly benefited by this
revolution by investing large amounts of money in various inputs like HYV seeds,
fertilizers, machines, etc. It also promoted capitalist farming.
 Industrial Growth: The Revolution brought about large scale farm mechanization which
created demand for different types of machines like tractors, harvesters, threshers, combines,
diesel engines, electric motors, pumping sets, etc.

o Besides, demand for chemical fertilizers, pesticides, insecticides, weedicides, etc. also
increased considerably.
o Several agricultural products were also used as raw materials in various industries
known as agro based industries.
 Rural Employment: There was an appreciable increase in the demand for labour force due
to multiple cropping and use of fertilizers.

o The Green Revolution created plenty of jobs not only for agricultural workers but also
industrial workers by creating related facilities such as factories and hydroelectric
power stations.