Policies and Performance in Agriculture


Agricultural growth has received special attention in India since the establishment of economic planning. Special focus was placed on the growth of the agricultural sector only after 1965, i.e., from the mid-period of the Third Plan. 

Every year since then, a large sum of money has been set aside for the growth and modernisation of this agricultural sector.

Growth:

During the pre-green reform era, from 1951 to 1965, extra land was brought into agriculture, including marginal areas, fallow lands, waste lands, and forest lands. Between 1950 and 1965, the yearly rate of increase in cropland area was fairly significant.

In India, gross agricultural area expanded from 122 million hectares in 1949-50 to 151 million hectares in 1964-65, then to 168.4 million hectares in 2008-09.

In India, the net planted area is projected to be 143 million hectares out of a total cultivable area of 186 million hectares.

1.6% for all crops, 1.4% for grain production, and 2.5% for non-food grains. However, throughout the post-green reform era, from 1965 to 1995, land under all products could not rise much, and the average annual growth rate in area was also relatively low—all crops: 0.3%, grains: 1.2%, and non- food grains: 0.7%.

Productivity of Agriculture:

Signifying the changing link between agricultural production and one of the primary inputs, such as land, us what a agricultural productivity means. The average yield per hectare of land is the most often used word to measure agricultural production.

In India, yield per hectare of all crops has increased dramatically with the advent of modern agricultural techniques, including the use of hybrid seeds, the expansion of irrigation infrastructure, and the use of intensified farming methods.

In India, yield per hectare of all crops has increased dramatically with the advent of modern agricultural techniques, including the use of hybrid seeds, the expansion of irrigation infrastructure, and the use of intensified farming methods.

During the post-green revolution period (1965-2009), the average yields for rice and wheat grew to 21.86 quintals and 28.91 quintals, however, indicating a significant yearly growth rate of 3.4% for wheat and 2.3% for rice.

Furthermore, when we compared the overall yields of various crops in India to other nations, we discover that India falls considerably behind the world's other industrialised countries.

In 1990-91, the yearly average output of rice per hectare in India was just 17.5 quintals, compared to 61.9 quintals in Japan, 41 quintals in the United States, and 54 quintals in China. Again, the yearly average wheat production per hectare in India was just 22.7 quintals, compared to 61 quintals in France, 30 quintals in China, and 68 quintals in Germany.

Agrarian Structure & technology:

The structure of land (area category) arrangement among landholders is referred to as agrarian structure.

Peasantry has always been a component of larger historical dynamics in India. Throughout these historical processes, their role in the industrial organisation has shifted dramatically.

Peasantry always has been a part of India's broad range of research dynamics. Their function in industrial organisation has evolved considerably during the course of these historical processes.

During the British period, India's agrarian system became extremely stratified. As a result of the execution of colonial policies in India, many agricultural classes formed.

To advance their interests, the Britishers, in addition to creating a new land tenure system, made successful efforts to open up road and railway links, as well as promote export commerce in specific agricultural goods within the scope of the colonial power's free trade policy.

Changes in agricultural production, trade and travel, the growth of railroads and industry, the state and administrative system were all responsible for the shift in class relations during British rule.

Trade & Prices:

Trade is critical in supplying food and supplies to customers all around the world. It contributes to increased customer preference and has helped to reduce food shortages throughout the world.

A lot of developments have occurred in international agriculture and food markets during the last decades, bringing domestic and international markets increasingly integrated.

Since the Second World War, agricultural prices, like most other commodity prices, have been steadily declining in inflation-adjusted terms.

Simultaneously, the production cost for the majority of agriculture goods has gradually climbed. The cost-price difference has been closed in a variety of methods, including off-farm work, loans, and explicit government subsidies.

Even with these efforts, millions of farmers in both rich and developing nations have been unable to earn a living and have been forced to abandon their farms. Despite the fact that many farmers have left the land, farming has not typically abandoned the land.

Rather, technological developments have taken the place of people as well as other resources.

Most farms have been cultivated in increasingly bigger units, necessitating the procurement of larger agricultural equipment, artificial fertilisers, more herbicides, and so on, resulting in substantial negative environmental consequences and economic loss in many rural areas.

In addition to the general decreasing trend in agricultural prices, there has been an increase in price volatility. Prices are at all-time lows, despite the fact that several commodities hit all-time highs just three years ago. Farmers responded at the time by planting more acreage than they had previously.

Governments have sought to protect against severe market volatility caused by unpredictability in the environmental, technology and policy advances, and other sources of unequal supply. 

Land predefined, import and export controls, supply chain management, and wholesale prices are examples of government policies used to maintain prices within acceptable limits.

Reserve storage is another efficient method of smoothing supply, demand, and price fluctuations.

Written By - Tanya C

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