Agriculture sector of india

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Information about Agriculture sector of india
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Published on February 28, 2014

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detail about agriculture sector of india

Agriculture sector of India Overview Agriculture is the dominant sector of Indian economy, which determines the growth and sustainability. About 58% of the population still relies on agriculture for employment and livelihood. Indian agriculture however, has milestones. The green revolution transformed India form a food deficient stage to a surplus food market. Agriculture is the mainstay of the majority of the population in India. Extremes in climate and a variety of soil conditions have made possible the cultivation of almost every item from cash crops to food grains. India's growth in per capita food production during 1979-92 was about 1.6% per annum, which is the highest growth rate in the world during this period. Agriculture provides livelihood to about 65% of the labour force, contributes nearly 29% to the Gross Domestic Product (GDP) and accounts for 8.56% of India's exports. In terms of gross fertilizer consumption, India ranks 4th in the world, after the USA, the erstwhile USSR and China. India has the largest area in the world under pulse crops and is also the first in the world to evolve a cotton hybrid. About 43 % of India's geographical area is used for agricultural activity. With the spread of irrigation facilities, the introduction of high yielding variety of seeds and farm mechanization, the vulnerability of the Indian agricultural sector to the vagaries of the monsoons has declined, compared to earlier. In a span of 3 decades, India become a net exporter of food grains. Remarkable results were achieved in these fields of dairying and oil seeds through white and yellow revolutions. The sector could not however maintain its growth momentum in the post green revolution years, the strategic growth in agriculture and the accelerated growth in industry reversed the structure of national GDP in Indian economy. Despite these major structural transformations, the agriculture sector continues to accommodate the major share of the workforce. According to:( CII & think quest atical ) Currant scenario According to the PARLIAMENT LIBRARY AND REFERENCE, RESEARCH, DOCUMENTATION AND INFORMATION SERVICE (LARRDIS) In the advance estimate of GDP for 2012-13, the CSO had pegged farm growth at a three-year low of 1.8 per cent against last year's 3.6 per cent. Production of foodgrain is expected to decline by 2.8 per cent as compared to the growth of 5.2 per cent in the previous year. According to the 2nd Advance Estimates of Production of foodgrains for 2012-13, estimated foodgrain production in the 2012-13 crop marketing year (beginning June) is 250.14 million tonnes (mt), a little over nine mt less than last year owing to erratic monsoon in many parts of the country.

The output of all crops, barring pulses and mustard, is expected to be less than last year. Production of wheat in the ongoing rabi sowing season is expected to be 92.3 mt from 94.88 mt in last year. Production of rice, mainly grown during the kharif sowing season, is estimated to be 101.8 mt from 105.31 mt in last year Coarse cereals' production in 2012-13 at 38.5 mt, as against 42 mt last year. Production of protein-rich food crops such as pulses is estimated to be better this year, especially that of gram. Production of all pulses this year is estimated to be 17.6 mt, about 0.5 mt more than last year. Oilseed production is expected at 29.5 mt, marginally less than last year's 29.8 mt. Among cash crops, production of cotton this year is expected to 33.8 million bales (a bale is 170 kg), about 1.40 mb less than last year. Sugarcane is expected to be 334.5 mt from 361.03 mt in last year. Jute is pegged at 11.13 million bales (a bale is 180 kg) in 2012-13, down from 11.4 million bales last year. Growth rate of Indian agriculture sector Improvement in performance of agriculture and manufacturing sectors is expected to push the economic growth rate to 6.4% in 2013-14 from 5% in the previous fiscal. "Economy will grow at higher rate from now. The govt. projected growth rate of 6.4% in the current fiscal", According to Prime Minister's Economic Advisory Council (PMEAC) Economic growth rate had slipped to decade's low of 5% in 2012-13 mainly on account of the impact of the global financial woes. by according to (PMEAC) hoped that the GDP estimate for 2012-13 would be revised upwards from 5% estimated by the Central Statistical Organisation (CSO). The improvement in the growth rate in the current fiscal, he said, would mainly be on account of better performance of agriculture, industry and services sectors. The agriculture sector was likely to grow at 3.5% compared to 1.8% in the previous fiscal. In case of industry and services sectors, the growth rates have been projected at 4.9% (3.1% in 2012-13) and 7.7% (6.6%), respectively. On the spiralling current account deficit (CAD), according to (PMEAC) it is likely to come down to 4.7% of the GDP in 2013-14 from about 5.1% in the previous fiscal. The CAD, which is the difference between inflow and outflow of foreign exchange, shot up to an historic high of 6.7% of the GDP for the quarter ended December 2012. According to : (Business Standard news report) Table 1: Trend GDP growth rates in India (%) 2011-12 Industry Agriculture Q1 3.7 Q2 3.1 Q3 2.8 2012-13 Q4 1.7 Q1 2.9

Industry Mining & quarrying Manufacturing Electricity, gas & water supply Construction Services Trade, hotels, transport & communication Financing, insurance, real estate & business services Community, social & personal services GDP at factor cost 5.6 -0.2 7.3 7.9 3.7 -5.4 2.9 9.8 2.5 -2.8 0.6 9.0 1.9 4.3 -0.3 4.9 3.6 0.1 0.2 6.3 3.5 10.2 13.8 6.3 8.8 9.5 6.6 8.9 10.0 4.8 7.9 7.0 10.9 6.9 4.0 9.4 9.9 9.1 10.0 10.8 3.2 6.1 6.4 7.1 7.9 8.0 6.7 6.1 5.3 5.5 Source: CSO & FICCI Research Growth Drivers of Indian agriculture sector : Growth in Organized Retail In india there is many organised retail sector which is help to sale the agricultural product. Example- Reliance fresh, vishal, etc Shift towards horticultural crops Government Initiatives Govt. Of india given many types of incentive to growth of argi. sector like – low interest lone, chef seeds etc. Investments Agri. Sector is a growing sector so that there many investor are attract for it so that many investment drive the growth of this sector like – Govt. And privet investment Government policy initiatives Year –on –year changing attractive Govt. Policy for the growth agri. Sector is drive the growth for it Higher yields and increasing profits Private sector participation Shift to nutrient based subsidy Increasing use of other fertilizers MRP and price decontrol Low penetration per hectare Availability of credit

Low penetration of tractors Low farm availability Opportunity in the new markets and products Increasing consumer spend on processed foods India’s competitive edge Growing food retailing in India Government support Growth in food processing exports Growth in terminal markets Low level of penetration in domestic market Increasing health consciousness of the people Huge export market Increasing organized retail According to : (Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes”) Recent happening in Indian agriculture sector: Govt. Policy towards Agriculture sector : The National Policy on Agriculture seeks to actualise the vast untapped growth potential of Indian agriculture, strengthen rural infrastructure to support faster agricultural development, promote value addition, accelerate the growth of agro business, create employment in rural areas, secure a fair standard of living for the farmers and agricultural workers and their families, discourage migration to urban areas and face the challenges arising out of economic liberalization and globalisation. Over the next two decades, it aims to attain: The salient features of the new agricultural policy are: 1. 2. 3. 4. 5. Over 4 per cent annual growth rate aimed over next two decades.. Greater private sector participation through contract farming. Price protection for farmers. National agricultural insurance scheme to be launched. Dismantling of restrictions on movement of agricultural commodities throughout the country. 6. Rational utilisation of country's water resources for optimum use of irrigation potential. 7. High priority to development of animal husbandry, poultry, dairy and aquaculture. 8. Capital inflow and assured markets for crop production. 9. Exemption from payment of capital gains tax on compulsory acquisition of agricultural land. 10. Minimise fluctuations in commodity prices. 11. Continuous monitoring of international prices. 12. Plant varieties to be protected through a legislation. 13. Adequate and timely supply of quality inputs to farmers. 14. High priority to rural electrification. 15. Setting up of agro-processing units and creation of off-farm employment in rural areas. Market size of Indian agriculture sector:

According to indian mirror report The total planned expenditure for the Department of Agriculture and Cooperation in India has increased by 18 per cent from Rs 17,123 crore (US$ 3.18 billion) in 2011-12 to Rs 20,208 crore (US$ 3.75 billion) in 2012-13. The outlay for Rashtriya Krishi Vikas Yojana (RKVY) was being increased from Rs 7,860 crore (US$ 1.46 billion) in 2011-12 to Rs 9,217 crore (US$ 1.71 billion) in 2012-13. Further, an amount of Rs 1,000 crore (US$ 185.53 million) has been allocated for “Bringing Green Revolution to Eastern India (BGREI)” initiative, compared to Rs 400 crore (US$ 74.22 million) in 2011-12. Allocation to the Department of Agriculture and Cooperation has increased considerably from Rs 5560 crore (US$ 1.03 billion) in 2007-08 to Rs 20,208 crore (US$ 3.75 billion) in 2012-13 facilitating more investment in the sector. India's agricultural growth for the period of 2012-13 was positive, largely on the back of normal monsoon. The Gross Domestic Product (GDP) growth in the agricultural sector is forecast at 3% for coming year, according to the National Council of Applied Economic Research (NCAER). India's agricultural growth for the past three has remained in the positive regime and it is expected to continue for the coming years too. The annual agriculture target for the financial year 2012-13 has been fixed at Rs 5,75,000 crore (US$ 106.69 billion) against the target of Rs 4,75,000 crore (US$ 88.13 billion) in 2011-12 Challenges Agriculture sector of india current scenario is facing a lot of challenges. It is important to have food security through a transformation of Indian agriculture. There are some challenges which are abstract in the way of growth, six major problem such as : (a) Population Pressure India has a huge population of over one billion and it is increasing at a very fast rate. density of population is 324 persons per sq. km. This is likely to increase further in future. This has created great demand for land. Every bit of land has been brought under the plough. Even the hill slopes have been cut into terraces for cultivation. (b) Small and Fragmented Land Holdings The pressure of increasing population and the practice of dividing land equally among the heirs has caused excessive sub divisions of farm holdings. Consequently, the holdings are small and fragmented. The small size of holdings makes farming activity uneconomical and leads to social tension, violence and discontentment. (c) Inadequate Irrigation Facilities By and large the irrigation facilities available in India are far from adequate. So for half of the total area under food crops has been brought under irrigation and the remaining half is left to the mercy of monsoon rains which are erratic in time and space. (d) Depleted Soils Indian soils have been used for growing crops for thousands of years which have resulted in the depletion of soil fertility. With deforestation the sources of maintaining

natural fertility of soil has been drying out. Lack of material resources and ignorance of scientific knowledge have further depleted the soils of the natural fertility. Earlier only animal waste was enough to maintain soil fertility. (e) Storage of food grains Storage of food grains is a big problem. Nearly 10 per cent of our harvest goes waste every year in the absence of proper storage facilities. This colossal wastage can be avoided by developing scientific ware-housing facilities. The government has taken several steps to provide storage facilities. (f) Farm Implements Although some mechanisation of farming has taken place in some parts of the country, most of the farmers are poor and do not have enough resources to purchase modern farm implements and tools. This hampers the development of agriculture. According to : (preserve articles) There are some other abstract in the agriculture sector : • Shrinking land resources Many industry, road ways, railway tracks ,Airport ,and more then 50% people stay in city those are the main cause of shrinking land resources. • Climate change Climate change is play important role in Indian agriculture sector ,the Indian firming sector most depend on monsoon. • Declining Water resources The dramatic role of monsoon in Indian agriculture sector • Demand for Organic Farming People are more census about health and food so, they demand more healthy food which have more nutrition and less use of pesticides • Shortages of Plant Nutrients In Indian agriculture sector the firmer are not given require nutrients to the plants so that excepted production is not achievable . • High cost of Inputs In agriculture more investment are needed on the time of cultivation in seeds and fertilizer etc. • Inadequate credit availability Indian agriculture sector are face the situation of insufficient of credit. • High Energy costs The agriculture sector consume more energy like Diesel, Electricity for farming and water supply . • Soil health problem In india continuous one type of firming is done in field so that the health of soil day by day. • Negative Thinking The agriculture sector most affected NT is poison, PT is nectar ,Smooth road never makes good drivers, “WHY ME” INSTEAD “TRY ME”, Iron will power, firm determination Opportunity • Scope of Food production exists • Adoption of BMP,IPM,IDM,INM • Adoption of Farming System • OF in Selected Crops and Areas • Contract Farming

• Precision Farming • Corporate & Co-operate Farming • Use of Non traditional energy • Nutrient Fortified crop Plants • Use of Genetic Engineering • Use of Information Tech • Urban Agriculture • Paying farmers for ES According to: (The Fertiliser Association of India New Delhi)

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