By Seela Subba Rao India’s achievement in the agriculture sector, though impressive in some areas and States, has remained below potential. There is a large gap between the income of agriculture and non-agriculture workers. Even after over seven decades of planning, most farmers still face the problem of poor production and inadequate return for their […]
By Seela Subba Rao
India’s achievement in the agriculture sector, though impressive in some areas and States, has remained below potential. There is a large gap between the income of agriculture and non-agriculture workers. Even after over seven decades of planning, most farmers still face the problem of poor production and inadequate return for their produce.
Major Constraints
According to Agriculture Census 2010-11, the number of operational land holdings stood at 138.35 million with an average size of 1.15 hectares. Of the total holdings, 85% are in the marginal and small farmers’ categories of less than 2 hectares.
Seed is a critical and basic input for attaining higher yields and sustained growth in production. Distribution of assured quality seeds is as critical as the distribution of seeds. Unfortunately, good quality seeds are not within the reach of most farmers, especially small and marginal, because of exorbitant prices.
In spite of large-scale mechanisation in some parts of the country, there is less use of technology resulting in poor productivity. Also, farmers are still dependent on informal agencies for their credit needs despite a steady increase in the flow of rural credit from formal institutions. When the agriculturist’s capital is locked up in his lands and stocks, he is obliged to borrow money for stimulating the tempo of production.
Transforming Crucial
Transformation of the sector is crucial as 40% of households in the country depend on agriculture for their employment and livelihood. Research reveals that during the period of high agriculture growth (above 4%), almost half of it was driven by an increase in agricultural prices. Thus, if agricultural prices do not rise faster than other prices, there is a danger that the growth rate of agriculture will collapse, which then becomes a major cause of agrarian distress and impacts the overall economic growth.
A formidable and foremost challenge at present is how to sustain agriculture growth without letting food prices rise beyond acceptable limits and also to incentivise farmers to raise production without causing hardship to consumers. Hence, a shift in emphasis from growth to efficient growth is needed.
Successive surveys provide empirical evidence that there is a large-scale withdrawal by female labour from agriculture. However, such withdrawals have sharply decelerated while the shift of agriculture labour from the sector has accelerated.
India currently produces about 726 million tonnes of food to meet the demand of 1.3 billion people. Three-fourth proportion of this comprises food of plant origin (pulses, cereals, vegetables, etc) while the remaining comprises food of animal origin (milk, egg, fish etc). Agriculture will be required to produce 40.7% more food in the next 15 years to meet the domestic demand, which implies 2.3% annual growth. We will need about 1,016 million tonnes of food by 2031-32. Apart from meeting the agri-food production target, the real challenge comes from the composition of food and meeting nutrition requirements.
Agriculture accounts for more than 80% of total water use in the country. Still, more than 50% area under cultivation is without irrigation. Because of the common practice of flood irrigation, water use efficiency in the country is around 33%. Indian farmers use 2-times the water used to produce one tonne of food in major agricultural countries. Without modern irrigation facilities such as drip, sprinklers and sensors, the country cannot address the stress on water use.
Paradigm Shift
The National Agriculture Policy (July 2020) seeks to actualise the vast untapped potential of agriculture and aims at achieving a growth rate of 4% per annum in the sector with inclusiveness and equity. It emphasises the need to cater to domestic markets and maximise benefits from agri products. However, certain recommendations of the five reports of the Swaminathan Committee (2004-2006) need to be blended with the National Agriculture Policy to enhance productivity, profitability and sustainability of major farming systems.
The present challenges need to be converted into opportunities. Problems such as low wages, stress of manual work and irregular employment can be addressed by innovative approaches in production and post-harvest activities. These can be harnessed by developing and promoting new farm models based on knowledge and skill-based agriculture and post-harvest value-addition at the farm itself. The Pradhan Mantri Kaushal Vikas Yojana can play a vital role in this by promoting and imparting skills required in modern agriculture, value-addition and primary processing.
Food surplus has been continuously increasing for more than three decades. This requires a complete shift in food policy from shortage management to surplus management. We need to attain export competitiveness, and for this, the focus should be on three areas: Prices in primary markets should not be higher than international prices; price spread should be reduced and producers should be integrated with global chains.
Special focus is needed to raise the income of farmers at a much faster rate. This needs transformation of agriculture and marketing through a strategy that involves an increase in productivity, reduction in average cost, better price realisation for farm produce, expansion of allied activities and shift of farmers to non-farm activities.
Upgrading farming from low-tech to high-tech such as greenhouse cultivation, polyhouses, tissue culture, and precision farming will reduce average cost and enhance the income of farmers. Application of biotechnology will play an important role in shaping the future of agriculture. Agri-biotechnology occupied a back seat after the restrictions imposed on field testing and the non-release of Bt brinjal in the country. Countries which have embraced GM and genetically engineered technology have gained a lot in terms of productivity and cost. We must weigh the option for acceptance of biotech products vis a vis going back to indigenous technologies.
Use of nano-technology for the enhancement of food quality and safety, and the efficient use of inputs will be in near future. Nano-materials in agriculture will reduce wastage in the use of chemicals and also minimise nutrient losses in fertilization. This may also be used to increase yield through pest and nutrient management.
A well-coordinated strategy between the Centre and States is paramount to ensure that agriculture marches to the next stage of development along with secondary and tertiary sectors. Enhanced role of the private sector, active land lease market, formation of Farmers Producers Organisations and liberalised output market will help address these challenges.