Introduction

A Glimpse
Agriculture may be defined as an integrated system of techniques to control the growth and
harvesting of animal and vegetables. It is an uncomplicated endeavor comprising of technical
and practical processes that helps in the maintenance of the ecological balance and protects
human resources; and most importantly it is a viable food production system.

Human beings started practicing farming/cultivation some 10,000 years ago. Since then,
agriculture as a practice and as a process have undergone substantial changes which have had
consequential impact on human progress and lifestyle. Over the ages these developments in
agriculture have radically transformed human ecology, society, organizations, demography and
even art and religion and have to a certain extent determined the course of scientific progression.

Early men gave up their hunter-gatherer lifestyle after they started

cultivation of plants as well as domestication animals. Rapid
developments were witnessed over the years though technology
and crop enhancement options were not available during the
successive periods. With the industrial revolution, the entire facet
of agriculture changed. The development and easy availability of
agricultural techniques led to increased agricultural productivity.
The industrial revolution is thus immediately followed by the
agricultural revolution across the world. Since then variety has
been noticed leading to a boom in the agro products sector,
thereby giving birth to innumerable companies, organizations,
institutes and more.

With the introduction of eco-friendly pesticides and fertilizers, crop yields increased to a
remarkable level. The early 20th century witnessed the usage of synthetic nitrogen, along with
mined rock phosphate, pesticides and mechanization including the synthesizing of ammonium
nitrate. Rice, wheat, and corn were the main crops that gave the best yield, thus introducing the
Green Revolution. Export of technologies, pesticides and fertilizers from the developed countries
to the developing countries, further increased the yields in all regions almost equally.

Organic farming, a concept introduced in the 1900s, that overused pesticides and synthetic
fertilizers, stayed dormant for several decades. This was because the cultivation process damaged
the long-term fertility of the soil. The European Union first certified organic food in 1991 and
then began research, exploration, use of alternative technologies like integrated pest
management and selective breeding. Today the markets of developed and also developing
countries across the world are flooded with genetically modified food.

Forms of Agriculture
Depending upon the purpose for which food is produced and livestock is raised, agriculture can
be divided into two groups. These two are:
 Subsistence Agriculture:
This form of agriculture can be definedas production of a certain
amount of food that is enough to sustain the family producing
food. The farmer engaged in such type of farming does not
produce in order to sell the food to the market, but retains it for
himself and his family. It is very rare to have surplus amount of
produce in subsistence agriculture and therefore there is no scope
for any commercial profit. Subsistence agriculture is practiced
without buying any fertilizers. This type of agriculture can
survive for a longer duration in those area where there is sparse
population; but in densely populated areas, it can have serious
repercussions in the form of damage to the environment and
depletion of soil nutrients

Commercial Agriculture:
The practice of producing crops and raising livestock for the purpose of selling the end products
in the market for gaining monetary benefits is termed as 'commercial agriculture'. It is defined
as the production of those products and commodities that can be consumed by the end users
through wholesale and retail distribution. Commercial agriculture includes raising of livestock
but does not include crops that are grown solely for consumption within the household.

Environmental Impact of Agriculture

It has been observed that intensive farming can alter the natural environment leading to some
major problems. Following are the ways by which agriculture can affect nature:
• Increasing area being brought under cultivation can have a negative impact on the
wildlife and can completely reduce wildlife habitat
• Surplus use of fertilizers can pollute rivers and lakes
• It can hugely affect the flora and fauna
• There can be depletion of mineral in the soil
• Agriculture can also create bad odor from the agricultural wastes

• It can lead to soil erosion.

Various Kinds of Agricultural Practices

Farmers in India and around the world have now resorted to more advanced techniques in
farming that can lessen the environmental degradation. The various forms of agricultural
practices are:

• Organic Agriculture: In this form of agriculture, one

largely does away with synthetic or man made fertilizers
and pesticides and adopts those techniques which are
ecologically sustainable by using biological rocesses. This
is done mainly to have a fertile soil and a healthy
livestock

• Industrial Agriculture: It is defined as a modernized

 form of farming in which the farmer uses the services of
advanced machines and tractors instead of labour of
humans and animals. The method of industrial agriculture
is used mostly in the developed countries. The method of
industrial agriculture comprise constant innovation in
farming methods and agricultural machinery

• Crop Agriculture: This involves meticulous cultivation of food, fiber, etc. It produces
not just food but also products which are highly used in industries or medicines. Crop
agriculture first came into existence during the Stone Age when hunters made a switch
from hunting to a more sophisticated culture of species which were favored.

Categories of Agro Products

The various agro foods can be categorized as cereals, seeds, spices, fruits, dehydrated fruits,
vegetables, dehydrated vegetables, dry fruits & nuts, edible oil, flowers, fertilizers, tea & coffee,
oil crops, aromatic plants, herbs, essential oils, floral absolutes, coconut and coir products,
potpourri, processed food & snacks, pickles $ condiments, pet-use products, milk & dairy
products, meat & poultry food, marine food supplies, baby foods, animal fodder, etc.

India is the second largest producer of food in the world. Whether it is canned food, processed
food,
food grains, dairy products, frozen food, fish, meat, poultry, the Indian agro industry has a huge
potential, the significance and growth of which will never cease.

Problems faced by Indian Agriculturist

1. Lack of education and awareness about opportunities.

2. Lack of Market Knowledge and Marketing skills.
3. Lack of professionalism and small land holding.
4. Absence of innovative financing for agriculture.

5. Agriculture has become un-viable due to over supply because new hybrids are giving
excellent yield but due to over supply, the price realization is very low.
6. Cost of transport to market, electricity for water pump, cost of fertilizers, cost of living is
going up several times but the selling price of agriculture produce is stagnating due to over
supply and record productions.
7. Lack of reliable Agriculture publication and media to provide latest and reliable localized
data.
Economic Evolution of Indian Agriculture AND MODERN INDIAN AGRICULTURE

Indian agriculture is undergoing a rapid change particularly since mid-sixties i.e. from the
on-set of ‘Green Revolution’. Therefore, we have witnessed a ‘white Revolution’ marking a
tremendous increase in the milk production. Our horticulture, which includes fruit
production, floriculture and vegetable production is also making a tremendous heading and
it is said that ‘yellow Revolution’ is in the sight.

If we analyse this changing scene in agriculture, we can notice that the traditional
agriculture. Which was a ‘way of life’ for our farmers is now becoming a ‘business
proposition’. In the traditional farming there was no much change in the cropping pattern,
cultivation practices etc. It was based on the experiences transmitted from father to the
son. However, with the developments taking place due to five-year plans and technologies
developments in agriculture, traditional farming is changing into modern farming.
Traditional farming is slowly becoming absolute and uneconomic. Traditional farming was
more or less self-sufficient. No, farming is becoming market oriented. The needs of the
farmers are increasing. He has to purchase many things such as high yielding seeds,
fertilizers, pesticides, machinery etc. from the market. As a result, his investment and
financial needs are increasing. Naturally, he has to produce and get income to meet the
costs and also to make some profit. This, the costs, returns, markets, profits of the
enterprise become significantly important. This is nothing but ‘Agri-economics’.

With increasing population, rapid urbanization and growing export markets, the demand for
farm products is increasing and is likely to increase in the near future. However, the
competition is also likely to increase. The consideration of economic aspects in the
production process is inevitable.

As indicated above, there has been a technological break-through in agriculture in recent

years. New non-traditional crops, new varieties of crops, new methods of cultivation are
coming in very fast and farmers are adopting the same. A large number of farm products
are being produced for exports. However there are specifications about the size, color,
quantity, taste, packaging etc. Which farmers should know. Farmer has to consider all these
aspects and consider the costs and returns before entering into the venture.

Farmer has several enterprises (such as crops, dairy, and poultry) on the farm. He has to
consider the economics of each enterprise separately also of the farm as a whole. It helps in
decision making and proper planning of the farm. Now, the time has come that every
activity on the farm has to be viewed from the perspective of economics.

Along with the adoption of new technology in farming, the problems faced by the farmer’s
fare also increasing. There are problems of soil and water management, choice of crops,
technical know-how, pests and diseases, natural hazards, marketing, finance, surplus
production, price fluctuations and so on. In finding the solutions for these problems,
economic criteria are to be applied.

India is a vast country with varied climate, soils, and ecological conditions. In addition to
this, individual farmer is having his own set up of resources and socio-economic situation.
In solving the problems of individual farmers all these situational factors are to be taken
into account.

An important ray of hope, which one can notice in this complex changing scenario of
agriculture, is that a new generation of farmers who are more educated, young and
energetic have taken up to this enterprise. In addition, many non-farming community
entrepreneurs are also attracted towards agriculture. They are very keen on getting more
knowledge about the new technology. Many of them are innovative and experimenting of
their own. Naturally, they are more economics oriented.

How can u revolutionize Indian agriculture?

There are many ways you can support indian agriculture &
some of the practical projects are included here. These
projects will be executed with the help of renowned NGO's.

3. Sponsor an Agriculture Improvement and awareness project

4. Sponsor Indiaagronet.com
5. Partner with us
6. Creation Of CD on Farm Management, Pest Control, Organic Farming,
Harvesting
7. Sponsor a Video Van

Sponsor an Agriculture Improvement and awareness project

You can also revolutionize Indian Agriculture by doing simple things like creation of
awareness about profitable agriculture strategies, new Agri-technologies, new seeds and
products.

You can sponsor a project by providing monetary help. The project list includes:
1. To hold Campus Seminar for Agri-graduates for incubation and promotion of effective
agriculture techniques.

2. Set up a agriculture clinic with a PC, Internet Connection, Books and a fulltime
Agriculture expert to introduce new seeds, Agri-technology, irrigation technology, new
ideas of income generation.

3. To provide reliable data on demand - supply and marketing scenario through website.

4. Provide or sponsor Computer, used Vehicle, used Laptop , used PDA, Books, support
agriculture survey, provide quality seed and planting material, information
dissemination on essential quality norms for export of agriculture produce.

5. There are many such projects and they can be executed by renowned NGOs with
minimum cost and in fixed time frame to achieve maximum benefit.

If you are interested in this project please get in touch with us so that we can send you all
details and how to proceed about this to make it successful in true sense.

Sponsor Indiaagronet.com

If you want to help indiaagronet.com to provide more features and in depth localised
information and if you want to help us to invest in rural and agriculture research and
development programme then you can sponsor various features on indiaagronet.com.
Please send a mail to webmaster@indiaagronet.com and we will get in touch with you.

Sponsor a Publication

1. Publication of a series of booklets and distribution to popularize modern agriculture

techniques

2. Monetary help to start a Agri-Magazine to promote new technologies, increase in

productivity, motivate entrepreneurship among Agri-graduates.

Partner With us

If you are interested in becoming a investor in agriculture knowledge research then a

separate entity can be created with your help to give a boost to the efforts to help Indian
agriculturist.

Sponsor a Radio Programme

To sponsor radio programme for effective delivery of information to Farmers.

Creation Of CD on Farm Management, Pest Control, Organic Farming, Harvesting

You can help us to prepare and distribute Audio Cassettes and Multimedia CD on
demonstration of various technologies, various crop practices, pest management, irrigation
practices, etc.

Sponsor a Video Van

To own and run a agriculture I-van where a van fitted with pc and video projector will tour
entire length and breadth of the country to promote cost effective income generation in
agriculture via a video demo at small villages. Mobile video van for demonstration of good
crop practices and for Medicinal plant, Aromatic plant, Herbals and Organic Farming.

Emerging Scenario in Indian Agriculture

The constraints to development of the region which are examined under four heads as follows:

Socio-cultural : Rapid population growth, high population density, and tribal to non-tribal
composition, shyness of the people, shortage of technical manpower, lack of skilled agricultural
work force, inappropriate land tenure system, private property rights in hill areas, insurgency and
ineffective governance etc.

Physical : Hill topography, land-lock characteristics, primitive agro-economic system, high

rainfall and its skewed distribution, frequent floods, fragile ecology, unsuitable cropping pattern,
shifting cultivation, fragmented holdings, soil degradation, poor development of fishery,
livestock and forestry etc.

Technological : Underdeveloped irrigation facility, poor or non-adoption of HYVs and

fertilizers, absence of agro-processing industries, lack of sound disaster warning system, soil
testing facilities, viable fishery and livestock technologies, high risk and uncertainty in kharif
season

Infrastructure : Very poor and inadequate road and communication network, markets,
transport (rail, road, air and water including total lack of sea route), banking and other financial
institutions, low investment on health, education and rural electrification, absence of private
sector participation in the development process, lack of skill and enterprises in the region etc.

Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis

In order to get greater insights into the development paradigms in the region, a framework of
SWOT analysis is attempted.

Strengths
Water : Numerous rivers, streams, and other water bodies with perennial flow of water in the
region, potential for irrigation, hydropower, water transport, fishery etc.

Tea : Climate-topographical situation is most suitable. Fifty-six per cent of India’s tea
production in the region, most of which is organically grown.

Oil and petroleum products : Over half of oil and natural gas production of the country is in
the northeast region (NER).

Forests : The region possesses richest bio-diversity, good quality usable wood / timber

Potential international markets for exports and imports : The NER is surrounded in all sides
with international borders

Mineral resources : Several mineral resources are found in abundance

Weaknesses

Isolation : from the main land and shyness of the people

Socio-cultural closeness : (particularly of the tribal), subgroups, multiplicity of ethnic groups,

diversity of language and dialects etc.

Shifting cultivation : Though labeled as inefficient, shifting cultivation is a major mode of

production in many areas, 16 per cent of the available land area involving 4.5 lakh Jhumia
families. Due to population pressure, the Jhum cycle is reduced which is a deterrent to local
ecosystem

Lack of capital formation : Outside markets for trading the natural resources of the region are
in existence from colonial regimes. But the market is unidirectional, inefficient and does not
favour capital formation

Movement of flow of men and material : Due to various reasons, the flow of man and material
is highly limited

Lack of data-base : Lack of relevant on information on socio-economic and development

parameters, is a policy deterrent

Opportunities

Potential international market : Triangular and quadrangular trade can be promoted

Close society : Better socio-cultural exchange in tribal societies; a model of collective action

Diversification : Agro-based industries using the local raw materials-horticulture, fishery, tea,
rubber, jute, oilseed etc.
Threats

Ecological : Floods, cyclone and earthquakes occur frequently

International border : Long and difficult terrain in the international border

Social Security : Possibilities for border-crossing creating situations of threat to social/national

security

The Road Ahead – Strategies

The strategies are suggested based on constraints and SWOT analysis keeping in view the basic
tenets of interdisciplinarity, eco-regional perspective, making business with a changing attitude,
and with strong O&M motivation. The principles involved include ecology, gender and social
equity, economics and employment.

The components of the strategy include:

Technology Policy : Conservation of biodiversity, integrated farming system approach, soil

conservation, soil health care, sustainable land use, rain water harvesting and conservation,
watershed development, groundwater utilization, energy management, IPM, demand-driven
identification of crop, livestock, tree and fish enterprises of the farming system, efficient post-
harvest management including producer oriented marketing and promotion of non-farm rural
enterprises and knowledge, skill, information and management improvement / upgradation.

Socio-economic and policy : Thrusts on land reform, institutional reform, marketing, transport,
communications, energy, industry, handloom and handicrafts, trade and transit, tourism, banking
and finance and effective governance.

Solutions to the problems :

India’s massive agricultural sector employs about 60% of the population, yet
accounts for only about 17% of total GDP. Growth in agriculture has stagnated
relative to other sectors: last year the agricultural sector grew at a rate of 2.7%,
relative to 11% growth in both the service and industry sector. Agricultural incomes
are lower and growing slower than incomes in other sectors. The government has a
clear imperative to seriously examine whether existing policies are optimal.
There is a staggering amount of literature analyzing agricultural policy in India.
From my admittedly cursory review I noticed several recurring themes, which I
discuss in no particular order:

1. Increase farmer’s access to markets.

The World Bank cites an “almost universal lack of good extension services” to
farmers as a major factor inhibiting growth. In addition to the miserable
infrastructure in many rural areas, the inability of farmers to directly access
markets has sustained the presence of a chain of middlemen through whom most
agricultural commodities must circulate before finally reaching consumers. Many
SHGs have, with great success, arranged cooperatives that bypass such middlemen
and sell directly to wholesalers. The government should learn from the success of
such initiatives and try to help streamline the agricultural commodity supply chain.

2. Improve agricultural productivity.

In spite of the gains of the Green Revolution, Indian agriculture lags behind in terms
of technology take-up and production efficiency. Lack of access to credit, which we
discussed earlier, may be one of the factors inhibiting farmers from investing in
technology. However, the ground reality also suggests that poor education and lack
of awareness of the benefits of new technology is also a factor. In addition, the epic
and recurring issue of poor irrigation and infrastructure is widely recognized as a
drain on productivity in many regions (Its estimated that about 10% of all
agricultural production in India is wasted due to lack of storage, transport, etc). The
government already proved itself capable of stimulating advances in agricultural
productivity with the Green Revolution. Future policies should focus on providing
incentives to farmers to adopt better production technology, bridging the
information gap that currently exists in the agricultural sector, and remedying
severe underdevelopment of irrigation and infrastructure facilities.

3. Reconsider distortionary subsidies and other policies.

Currently, the Indian government sets a minimum support price for almost all
agricultural commodities. Farmers who produce various goods are guaranteed the
option of selling directly to the government at a price fixed in the beginning of the
season. The stated goal of this policy is to “ensuring remunerative prices to the
growers for their produce with a view to (sic) encouraging higher investment and
production.” The inherent endogeneity of MSP policy makes a rigorous impact
assessment difficult, but the persistently low productivity growth in agriculture
suggests that the MSP policies have failed to stimulate sufficient capital
investments by farmers. Its conceivable the virtual subsidy provided by MSPs might
actually dampen incentives for technology take-up by guaranteeing a basic level of
income security. Furthermore, the existence of MSPs may encourage agricultural
production for which there is actually limited demand in private markets, leading to
unbalanced and suboptimal production choices by individual farmers. The process
by which which MSPs are set is also somewhat dubious, and many have suggested
that the current price-setting system is vulnerable to political manipulation and lack
of parity across goods. Although scrapping MSPs would obviously expose a large
number of farmers to the risk of price shocks, it seems to me that improving
farmers access to insurance products and commodity futures markets is more
sustainable and optimal way to manage such risks.

4. Improve public education.

Even if agricultural productivity does increase, it is still likely to lag behind the
explosive IT and service sectors. However, the public education system is clearly
failing to provide rural children with the skills necessary to enter these labor
markets. This is perhaps the single biggest factor inhibiting the transition from
agriculture to service sector employment. The demand for skilled workers in India
has exploded, particularly in the service sector, demand which many firms are
finding difficult to meet domestically due to extremely skewed distribution of
human capital (something Doug discussed in the previous post).

5. Promote non-farm entrepreneurship among farmers.

Although India’s rural poor are by and large uneducated, many of them are capable
of operating small businesses that have higher returns than traditional agriculture.
However, their ability to start such business is often hampered by lack of access to
credit and capital. In spite of the microfinance “revolution” and government policies
designed to stimulate capital flow to the rural population (such as priority sector
lending), there is still a massive failure of credit markets to meet the demands of
the rural population. Empirical research has demonstrated that returns to capital
are extremely high in microenterprises (roughly 80% in Sri Lanka), which of course
suggests that there is tremendous potential for farmers who start operating small
businesses to supplement or replace their primary line of work.

I’d be interested in hearing peoples opinions on any of these issues, and think this
discussion would particularly benefit from the observations of people working in
rural ares.

Effects of modern farming :

today's chemical farms have little use for the skilled husbandry which was once the guiding
principle of working the land. The emphasis today is solely on productivity - high input in
exchange for high returns and productivity (mostly diminishing now however for farmers
worldwide). Four important considerations - what happens to the land, the food it produces,
the people who eat it and the communities which lose out - are overlooked.

The constant use of artificial fertiliser, together with a lack

1 Land exhaustion
2 Fertilisers
3 Nitrate run-off
4 Soil erosion
5 Soil compaction
of crop rotation, reduces the soil's fertility year by year.
High yield levels are produced by applying large quantities
of artificial fertilisers, instead of by maintaining the natural
fertility of the soil.
About half of the nitrate in the artificial fertiliser used on
crops is dissolved by rain. The dissolved nitrate runs off the
fields to contaminate water courses.
Where repeated deep ploughing is used to turn over the
ground, heavy rains can carry away the topsoil and leave
the ground useless for cultivation.
Damage to the structure of soil by compression is a serious
problem in areas that are intensively farmed. Conventional
tillage may involve a tractor passing over the land six or
 seven times, and the wheelings can cover up to 90 per cent
of a field. Even a single tractor pass can compress the
surface enough to reduce the porosity of the soil by 70 per
cent, increasing surface run-off and, therefore, water
erosion. In the worst cases, the surface run-off may
approach 100 percent - none of the water penetrates the
surface.
As crop yields grow, so does the amount of fuel needed to
produce them. European farmers now use an average of 12
6 Agricultural fuel
tons of fuel to farm a square kilometre of land; American
farmers use about 5 tons (1987 figures).
The only controls used against weeds and pests are
7 Biocide sprays chemical ones. Most crops receive many doses of different
chemicals before they are harvested.
On most "modern" farms, all animals are crowded together
indoors. Complex systems of machinery are needed to feed
them, while constant medication is needed to prevent
8 Cruelty to animals
disease. The cruelty involved in managing, breeding.
growing and slaughtering farm animals today is
unimaginably repulsive and horrifying.
With so many animals packed together in indoor pens, their
manure accumulates at great speed. It is often poured into
9 Animal slurry lagoons which leak into local watercourses, contaminating
them with disease-causing organisms and contributing to
algae-blooms.
Many farms are not self-sufficient in animal feed; instead
10 Imported animal feed they rely on feed brought into the farm. This often comes
from countries which can ill afford to part with it.
In countries where stubble is burned, large amounts of
11 Stubble burning potentially useful organic matter disappear into the sky in
clouds of polluting smoke.
Loss of cultivated Large and other chemical farms tend to be monocultures
12
biodiversity growing the same crop and crop variety.
Native cultivars and animal breeds lose out to exotic
Threat to indigenous species and hybrids. Many native animal breeds are today
13 seeds and animal threatened with extinction. The same holds true for many
breeds and species indigenous plant varieties which have disappeared within
the space of one generation.
Agribusiness farming demands that anything which stands
in the way of crop production is uprooted and destroyed.
14 Habitat destruction The wild animals and plants which were once a common
sight around farms are deprived of their natural habitat and
die out.
Food, both plant and animal products, leaves the farm
15 Contaminated food contaminated with the chemicals that were used to produce
it.
Destruction of Rural indigenous knowledge and traditions, both
16 traditional knowledge agricultural and non-agricultural, is invariably connected to
systems and traditions agriculture and agricultural systems.
17 Control of agriculture The supply and trading in agricultural inputs and produce is
inputs and food in the hands of a few large corporations. This threatens food
distribution channel security, reducing the leverage and importance of the first
and the last part of the supply chain - the farmer and the
 consumer.
Threat to individual Chemical agriculture is a threat to their livelihoods and
18
farmers changes their lifestyles, unfortunately not for the better.

Pesticides you could find in your food (and water)

The twin controversies in 2003 regarding pesticide content in bottled drinking water and
aerated beverages in India hardly came as a surprise to many working with the environment
and in farming. The pesticide problem is compounded in India because many pesticides
banned abroad are manufactured / dumped and sold freely here. Pesticides are not bio-
degradable, are highly toxic and find their way into ground water and water bodies,
contaminating them and rendering them unfit for drinking purposes. Remember that even if
you blame (though rightly-so) a beverage manufacturer for allowing pesticide residues in
their products and treating human life so cheaply, the fact remains that pesticides entered
the water supply in the first place only because of the agriculture system which used them.

These are some of the pesticides you can find in the food you eat. The list is not,
unfortunately, exhaustive. To know how some of these pesticides affect humans and the
environment, click here.

Food product Contaminant pesticides

Apples Diphenylamine, Captan, Endosulfan, Phosmet, Azinphos-methyl
Bananas Diazinon, Thiabendazone, Carbaryl
Bell
Methamidophos, Chlorpyrifos, Dimethoate, Acephate, Endosulfan
Peppers
Broccoli DCPA, Methamidophos, Demeton, Dimethoate, Parathion
Cabbage Methamidophos, Dimethoate, Fenvalerate, Permethrin, BHC
Cantaloup Methamidophos, Endosulfan, Chlorothalonil, Dimethoate, Methyl
es Parathion
Carrots DDT, Trifluralin, Parathion, Diazinon, Dieldrin
Cauliflowe
Methamidophos, Endosulfan, Dimethoate, Chlorothalonil, Diazion
r
Celery Dicloran, Chlorothalonil, Endosulfan, Acephate, Methamidophos
Cherries Parathion, Malathion, Captan, Dicloran, Diazinon
Corn Sulfallate, Carbaryl, Chlorpyrifos, Dieldrin, Lindane
Cucumbers Methamidophos, Endosulfan, Dieldrin, Chlorpyrifos, Dimethoate
Grapefruit Thiabendazole, Ethion, Methidathion, Chlorobenzilate, Carbaryl
Grapes Captan, Dimethoate, Dicloran, Carbaryl, Iprodione
Green
Dimethoate, Methamidophos, Endosulfan, Acephate, Chlorothalonil
Beans
Lettuce Mevinphos, Endosulfan, Permethrin, Dimethoate, Methomyl
Onions DCPA, DDT, Ethion, Diazinon, Malathion
Oranges Methidathion, Chlorpyrifos, Ethion, Parathin, Carbary
Peaches Dicloran, Captan, Parathion, Carbaryl, Endosulfan
 Pears Azinphos-methyl, Cyhexatin, Phosmet, Endosulfan, Ethion
Potatoes DDT, Chlorpropham, Dieldrin, Aldicarb, Chlordane
Spinach Endosuslfan, DDT, Methomyl, Methamidophos, Dimethoate
Strawberri
Captan, Vinclozolin, Endosulfan, Methamidophos, Methyl Parathion
es
Sweet
Dicloran, DDT, Phosmet, Dieldrin, BHC
Potatoes
Methamidophos, Chlorpyrifos, Chlorothalonilo, Permethrin,
Tomatoes
Dimethoate
Watermelo
Methamidophos, Chlorothalonil, Dimethoate, Carbaryl, Captan
n

Use of indigenous seeds

One of the most negative results of the commercialisation of agriculture is the total
dependence by the farmer on external sources for all his farming inputs, including seeds.
Whereas earlier farmers used to save and share their seeds, today they depend wholly upon
seed companies for their requirements. Indigenous seeds are more suitable to a particular
region or situation than any hybrid variety.

There are a number of reasons why it makes sense to use indigenous or traditional seeds
(called heirloom seeds in the West). Compared to hybrid seeds, they are hardy, pest-
resistant, withstand unfavourable conditions in the area of their origin, require less water
and nutritional inputs, fit in better in the organic method of farming and may even have
special characteristics such as nutrition, fragrance or colour,

Hybrid seeds on the other hand are developed for very specific situations and have precise
water and nutritional requirements, generally on the higher side. They are also more prone
to pest attacks and diseases. Besides being costlier, hybrids cannot be saved or shared with
any benefit to the farmers. In fact, even where improved varieties are not hybrids, it is
usually illegal for farmers to save or share such seeds. In some western countries, it is now
illegal for farmers to share or sell even their local seed varieties on the grounds that the
seeds are not certified!

However, all this does not mean that just about any indigenous seed should be freely used
by farmers. As with hybrids, all varieties are not suitable for commercial cultivation. Many
farmers save seeds selectively after seeing the vigour and growth of individual plants. This
is an old tradition and is and needs to be continued.

B1. PROBLEMS IN ARICULTURE

Deceleration in growth rate
In 2004-05, the share of agriculture in GDP was 20.2% with 56.5% work force dependent
on agriculture for employment. The following table21 shows the declining trend in the

growth rate of agriculture, while industry and service sector have been growing rapidly.

As mentioned earlier in this paper, credit in agriculture has been given too much
importance while other factors responsible for productivity have been ignored. The
finance minister also assumes indebtedness to be the major cause of distress amongst
farmer households, but according to the ‘Report of Expert Group on Indebtedness’
chaired by R Radhakrishna, indebtedness is just a symptom and not the root cause of this
crisis, and the committee report says that average farmer household borrowing has not
been excessive. According to the committee report the factors contributing to this crisis
are “stagnation in agriculture, increasing production and marketing risks, institutional
vacuum and lack of alternative livelihood opportunities.” The deceleration in the growth
rate of agriculture is evident in the above table.
Decreasing Yield
A major problem ailing Indian agriculture is the declining efficiency of input use and
thus, adversely affecting the yield. The following table22 on ‘Growth of Area, Production

and Yield of Major Crops in India: 1980-81 to 2003-04’ displays this negative trend
This declining trend of annual growth rate of yield might affect the profitability in
agriculture. According to MS Swaminathan, “The prevailing gap between potential and
actual yields in the crops of rain-fed areas such as jowar, bajra, millets, pulses, and
oilseeds is over 200 per cent even with the technologies on the shelf”, and the benefits of
the loan waiver scheme would be fully realised only if the farmers are “supported with
synergetic packages of technology, services, marketing infrastructure, and public policies
related to input and output pricing.”23
Productivity in Agriculture
22
The above figure24 shows near stagnation in ‘per worker productivity in agriculture’, with
some states exhibiting a declining trend. This trend of falling productivity can lead to
negative consequences for agriculture and should be checked. What makes this issue
even more important is the fact that the per-worker productivity in non-agriculture sectors
has been growing much faster than that in agriculture. The situation is same for all Indian

states, as the following table25 shows.

Availability of timely input and information
The main problem with over-emphasising the provision of credit and not considering
other factors, like provision of timely inputs, is the fact that even if farmers have credit, it
would be of no use to them if they are not able to purchase seeds, fertilizers, pesticides
etc. from the money they have. This hampers productivity with the actual yield being less
than the expected yield. The following table26 has the data for the kharif season showing
the number of farmer households using fertilizers, the number of farmer households using
it on time, and the number of farmer households not being able to use the resource on

time.
The table shows that around 75% farmer households use fertilizers, and only 73.5% are
able to use it when required. An important reason for the farmers not using various
modern methods of technology is lack of awareness among them about the existence of
these resources. The following table27 shows the percentage of farmer households
obtaining information on cultivation from any source (extension worker, TV, Radio,
Newspaper, Input Dealer, and Other Progressive Farmers). All over India, only around
40% farmer households access some source for getting information on modern methods
of farming, out of which less than 60% get information on improved seeds, less than 50%
get to know about fertilizer application, while only 24% get information on plant
protection.
27
Water Management
According to Arindam Banik, the share of input subsidies in public expenditure was 44%
in the early 1980s and it rose to 83% by 1990, but “The increasing shares of total public
expenditure on agriculture are allocated to input subsidies (on fertilisers, electricity,
irrigation, and credit, for example), rather than to productivity-enhancing investments
such as research and public investment in irrigation.”28 Irrigation is of vital importance in
agriculture and an individual can not invest in creating infrastructure for the same. The

following table29 shows ‘Net Irrigated Area by Sources’.

Other problems
Sharad Joshi feels that it is very important to open up the economy for agriculture so that
the farmers in India become globally competitive. He says that while “some of the
farmers have to undergo the rather excruciating process of shifting to new jobs. But we
have to open up if our farmers have to learn new skills and new technology.”30 He said
that he would prefer to pay for electricity and get it when he needs it, rather than getting
subsidised electricity at midnight. Alan Greenspan also says that “government in recent
years has expended more than 4 per cent of GDP on subsidies, mainly on food and
fertiliser, while state subsidisation of power and irrigation has added measurably more.”31
There is another very important in agriculture that has been put forth by Arindam
Banik32. He says that the farmer is generally required to repay the debt immediately after
the harvest and as he has no other means of repaying the debt, he is forced to sell the
produce immediately after the harvest. But as all the farmers sell their produce at the
same time (i.e. immediately after harvest) the farmers receive less for their produce than what
they could have obtained at a later stage in the market. This is because at the time of
harvest, there is an excess supply in the market and the prices are driven down. There is
an urgent need to device a mechanism to take care of this issue, because farmers are not
able to reap the full benefits of their labour.
B2. ALTERNATIVE USE OF RESOURCES
When asked about the overlooking of informal sector lending in the loan waiver scheme,
in an interview with The Hindu the Finance Minister replied that “What can I do about
that? Can anyone quantify how much he has taken? The point is we can do what is
doable. There’s no point picking the undoable against the doable and then saying don’t
do the doable. That’s a very strange argument.” There is no disagreement with the
remarks made by the Finance Minister, but there could have been an alternative use of the
huge amount of government resources that have been spent on the loan waiver scheme, to
help all the farmers in general that are suffering due to the ‘Agricultural Crisis’.
It is a well known fact that the current scheme provides only a very short term relief, with
a very limited outreach and it does not cater to the problems of agriculture. S Mahendra
Dev writes that “The budget should have given a large push to core issues like public
investment in infrastructure, land and water management including rain water
conservation and watershed development, research and extension, price stabilisation etc,
to make cultivation viable and profitable.”33
There is no doubt that agriculture could have benefited more if the same amount had been
used for development of infrastructure. Following comparisons are made just to show the
enormous potential of Rs72000 crore.
Laser Land Levelling
33

Apart from the various benefits of land levelling, environmental concerns at some places
make land levelling the need of the hour. According to the Department of Soil and Water
Conservation (Punjab), out of 141 blocks of the state more than 100 are over exploited
due to excessive pumping of ground water. This is evident from the fact that area having
water table below 30 feet depth has increased from 3% in 1973 to 90% in 2004. Levelling
of land can make the situation better because around 20-25% of irrigation water is lost
during application if the land is not level.
Apart from non-optimal use of water, uneven fields have uneven crop stands, increased
weed burden and uneven maturing of crops. All these factors lead to reduction in yield
and also affect the quality of grain. Level land improves water coverage that:34
• Improves crop establishment.
• Reduces weed problems.
• Improves uniformity of crop maturity.
• Decreases the time to complete tasks.
• Reduces the amount of water required for land preparation.
The following table35 shows ‘The additional cost and financial benefit from land
levelling’.
34
The data in the above table clearly shows that in the long run, laser land levelling makes
economic sense. A study done by Punjab Agriculture University (Ludhiana) showed that
average increase in crop yield due to levelling of land was 24%. The data is summarised

in the following table36

C. CONCLUSION AND RECOMMENDATIONS

Undoubtedly, the most important concern in Indian agriculture is the lack of adequate
investment. This is evident in the following table41 which shows the investment in
agriculture.

Large scale investment in agriculture has to be taken up by the state as the private sector
does not have the capacity to undertake such huge investment, and also there is no
incentive for an individual to take up such investment that falls under the category of
public good. If the infrastructure in agriculture is in its place, we can hope to see more
private corporate companies coming up in agriculture, which would be beneficial for the
farmers. This would incorporate the farmers in the mainstream and it might put an end to
the incessant subsidies in agriculture.
Talking of rural credit, as mentioned earlier also, just the provision of credit will not end
all the problems in agriculture. M Sitarama Murty puts forward this view by saying that it
would be a “fallacy to believe that credit or its waiver alone can mitigate the problems of
the afflicted farmers. Timely availability of the right kind of fertilizers, genuine and

quality seeds is very important. The marketing component of the chain is weak and the

Government can improve the storage, transport and processing facilities of grains, fruits
and vegetables and prevent distress sale of produce.”42
As S Mahendra Dev puts it, the most important need in agriculture is the provision of
“measures for raising output and good prices for production rather than more credit
which, in the absence of viable agriculture, push them back into a debt trap. The issue is
not that of availability of institutional credit, but access, ease, and terms and conditions of
such finance.”43 The C Rangarajan committee report on Financial Inclusion says that 46
million farmer households out of 89 million households do not access credit, either from
institutional or non-institutional sources. Venkitesh Ramakrishnan44 quotes a study,
which says that in large parts of Uttar Pradesh (especially Bundelkhand and eastern UP)
instruments of formal credit delivery hardly ever lend money to small or marginal
farmers.
Sharad Joshi feels that the loan waiver scheme was not designed by keeping the interest
of farmers in mind, and if it was so, then the “Finance Minister would have first tried to
correct market imperfections so that the farmers are not driven to the trap of indebtedness
once again.”45 The indebtedness to moneylenders is another important issue, and
Agriculture Minister was ready with a solution to this complex problem. He said the
since the moneylenders are illegal, the farmers need not repay them. Before considering
this option, it is important to realize that the informal moneylenders are a part of the
traditional Indian agrarian society. Moneylenders have survived for the very basic fact
that they hold a ‘comparative advantage’ in this business, which they have been doing for
generations now. More importantly, they fulfil the credit needs of the farmers in case of
institutional vacuum, and it would be unethical to ask the farmers not to repay them as
they are illegal.
It is important to note that all the above recommendations are long term measures, and

even if indebtedness is not the major cause of agrarian crisis and is just a symptom, it is

still a cause of distress among farmer households and there has to be a short term measure
to take care of this issue. The recommendations of the ‘Report of Expert Group on
Indebtedness’ of immediate measures to be undertaken to solve the problem of rural
indebtedness are very relevant. It says:
Rescheduling of Loans of Farmers Affected by Natural Calamities46
The central and state governments have programmes of rescheduling loans to farmers
affected by natural calamities like floods and cyclones with a view to reviving the
livelihood base of the affected families. The Expert Group recommends that:
a. The loans of all the affected families should be rescheduled.
b. The families whose loans are rescheduled should be eligible for fresh loans.
c. The interest liability of the borrowers for the extended period of up to two years
(both for short and long term loans) should be waived and the financial burden
equally shared between the central and state governments.
Formalisation of Informal Credit47
The Expert Group underlines the need for mitigating the burden of farmers’ indebtedness
to moneylenders. It recommends a one-time measure of providing long-term loans by
banks to farmers to enable them to repay their debts to the moneylenders.
These short term measures would take care of the immediate needs of the farmers, and
they do not require a lot of government resources for implementation. And for the overall

benefits of agriculture, the above stated long term measures have to be undertaken