Agriculture Sector In India

Prepared By:Anshul 0161mba129

Anshuman 0161mba130Anunay Sinha 0161mba132

Arushi goel 0161mba133

Introduction and background onIndian Agriculture

India ‘s population is 1.21 billion in 2011. 67% are rural. Majority are in agriculture.

Importance of agriculture in Indian economy. Although it contributes only 15% of GDP, the share of workers is about 55%.

Marginal and small farmers dominateMajor crops are rice, wheat, maize, coarse cereals,

groundnut, cotton, sugarcane, fruits and vegetables

60% of cultivated area is rainfed as only 40% of area is under irrigation.

Rural poverty is 41%in 2004-05. Agriculture is a ‘State Subject’. In other words,

the policies of provinces are also important

Performance of AgricultureGrowth performance in agriculture%)1950-1 to 1964-5: 2.51 (area gro. +yield gro)1967-8 to 1980-1: 2.20 (yield gr. green revol)1980-1 to 1990-1: 3.07 (spread of green rev)1992-3 to 2004-5: 2.76 (reform period)1997-8 to 2004-5: 1.60 (neglect of agri.)2004-5 to 2010-1: 3.47 (revival of growth)

The policy, institutional and investment focus during green revolution time helped India achieve its food self sufficiency goals.

However, now different policies are needed to focus on small holdings, rainfed areas, women, lagging regions, rural non-farm for sustainable agricultural transformation

Agriculture accounts for almost 60 per cent of aggregate employment in India. Employment in agriculture is rural-based (97 percent); but it is depressing to note that in the rural sector the rate of growth of agricultural employment is abysmally low (0.01 per cent4 ) and was insignificant during the ‘90s. The corresponding growth during the ‘80s was moderate and significant (1.18 per cent). The decade of 80s and 90s frequently referred in the present discussion strictly refers to periods 1983-93 and 1993-99, respectively. These are in fact the years for which NSSOs quinquennial survey results based on a large sample is available5 for employment. With increased pressure on land, the role of allied activities increases but the annual compound growth rate (ACGR).

EMPLOYMENT IN AGRICULTURE

Technology in Agriculture

Use of machines on farms. Now a farmer can cultivate on more than 2 acres of land with less labor, and can cut costs even more when they are looking for a used tractor and other harvesting technology, versus new equipment. The use of planters and harvesters makes the process so easy.

Modern transportation: This helps in making products available on markets in time from the farm. With modern transportation, consumers in Dubai will consume a fresh carrots from Africa with in the same day that carrot lives the garden in Africa.

Irrigation of plants. In dry areas like deserts, farmers have embraced technology to irrigate their crops. A good example is in Egypt, were farmers use water pumps to collect water from river Nile to their crops. Most of these farmers grow rice which needs a lot of water, so they manage to grow this rice using irrigation methods enhanced by advanced technology.

Executive Summary

Advantage in India

Evolution Of Agriculture

Key States

Growth Drivers

Scheme By GovernmentAgricultural Technology Management Agency

(ATMA)Small Farmers Agribusiness Consortium (SFAC)Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)Paramparagat Krishi Vikas Yojana (PKVY)

India GDP From Agriculture• GDP From Agriculture in India decreased to 3095.38 IND Billion in

the third quarter of 2016 from 3743.90 IND Billion in the second quarter of 2016.

• GDP From Agriculture in India averaged 3899.02 IND Billion from 2011 until 2016, reaching an all time high of 5217.45 IND Billion in the fourth quarter of 2013 and a record low of 2715.05 IND Billion in the third quarter of 2011.

As per Union Budget 2016-17, the major focus would be on doubling farmers income by 2022. Other than that, the government would increase expenditure in farm and rural sector, infrastructure sector, social sector and also work on employment generation.

To establish a Long Term Irrigation Fund, under NABARD, an initial collection of nearly USD3.06 billion has been planned in Union Budget 2016-17. A multilateral funding of around USD0.92 billion to execute various program’s related to sustainable management of ground water resources.

As per Union Budget 2016-17, allocation of USD76.38 million was made, to enhance production of pulses, under National Food Security Mission in around 622 districts of the country.

Agribusiness

Agribusiness is the business of agricultural production. It includes agrichemicals, breeding , crop production

(farming and contract farming),farm machinery and seed supply, as well as marketing and retail sales. All agents of the food and fiber value chain and those institutions that influence it are part of the agribusiness system.

New Innovative Agriculture Business Ideas in 2017

Rice CultivationVegetable FarmingGroundnut CultivationFruits PlantationMushroom FarmingHerbs and Flower FarmingPig FarmingAir Fresheners and Perfumes

INDIAN AGRICULTURAL SECTOR

Steps taken by the governmentCrop Insurance PolicyEasy availability of capital or investment

inputIntroducing the MSP policySubsidy in using capital intensive technologyLand reforms Institutional credit increasedPDS & TPDS

Food processingMEANING:

Transformation of raw ingredients, by physical or chemical means into food.

Food processing typically involves activities such as mincing, emulsification, and cooking (such as boiling, broiling, frying ,or frilling), pickling , pasteurization and many other kinds of preservation; and canning or other packaging.

Pros & Cons Benefits Drawbacks

Easy TRF of delicate perishable product Impacts nutritional density

Help elevate food shortage Food preservatives & additives are used

Mass production is cheaper Artificial flavors damages health

Reduced time in preparing the food Risk of contamination is present

Easy availability at all times Frequent intake of such food degrades mental health

Food processing has potential to turnaround whole economy. Indian economy is still agrarian, because about 55% population is directly dependent upon agriculture. FPI directly targets farming sector as it attempts to create more types of products out of single crop. This will increase demand for farmers and hence more remunerative prices.

India’s demographic dividend is much talked about and most of this lies in rural India. Indian youth is turning away from agriculture because of low profitability. FPI is perhaps best bet to seize opportunity of demographic dividend. It can give us a genre of progressive rural entrepreneurs. Prosperous countryside will have multiplier positive impact on socio-economic and political problems. In short, FPI can narrow gap between rural and urban India.

FPI is employment intensive industry; it can be an answer to jobless growth of past decade. Currently, only 3 % of employment is in FPI, while in developed countries it handles 14% population. Again, much of the employment will be created into rural India. This can remedy problem of distress migration. Growth in direct employment in the organized food processing sector stands at 6 % between 2011-12.

Improving the sectorAgriculture EducationProvide adequate diesel, electricity and water

at subsidized ratesEncourage crop rotationMulti crop farmingEncourage cooperative farmingRelaxed credit terms

Major Challenges faced by Indian Agriculture

If we look at the challenges faced by Indian agriculture, we can broadly group them into two categories. One category belongs to the problems that have been long standing. Second category of problems is new and has been emerging from the prevailing agricultural practices, system, changing climate and economy. Let us discuss the major challenges in detail:•Stagnation in Production of Major Crops: Production of some of the major staple food crops like rice and wheat has been stagnating for quite some time. This is a situation which is worrying our agricultural scientists, planners and policy makers. If this trend continues, there would be a huge gap between the demand of ever growing population and the production•High cost of Farm Inputs: Over the years rates of farm inputs have increased manifold. Farm inputs include fertilizer, insecticide, pesticides, HYV seeds, farm labour cost etc. Such an increase puts low and medium land holding farmers at a disadvantage.

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• Soil Exhaustion: On one hand green revolution has played a positive role in reducing hunger from India. On the other hand it has also led to negative consequences. One of which is Soil exhaustion. Soil exhaustion means loss of nutrients in the soil from farming the same crop over and over again. This usually happens in the rain forest. • Depletion of Fresh Ground Water: The second major negative consequence of green revolution is depletion of fresh ground water. You would remember that areas where green revolution was successful, it was due to the use of chemical fertilizers and irrigation. Most of the irrigation in dry areas of Punjab, Haryana and Western Uttar Pradesh was carried out by excessive use of ground water. Today fresh ground water situation in these states is alarming. In the coming few years if this type of farming practice continues, these states are going to face water famine.• Impact of Globalisation: You can see the effect of globalisation on the farm sector in India. All developing countries have been affected by it. The most evident effect is the squeeze on farmer’s income and the threat to the viability of cultivation in India. This is due to the rising input costs and falling output prices. This reflects the combination of reduced subsidy and protection to farmers. Trade liberalization exposes these farmers to competition from highly subsidized production in the developed world.

Opportunities to Agricultural Sector in India

Opportunities to Agricultural Sector in India

•Agri machineryIndia is the largest manufacturer of tractors in the world. Power tillers are gaining popularity especially for lowland flooded rice fields and hilly terrains. Manually operated tools, animal-operated machines, and mechanical - or electrical - operated machinery are some examples, which are slowly increasing in demand. Innovation and technology in the Indian agricultural machinery industry can take the industry to greater heights, keeping pricing in mind.•Cold chain sectorDue to India being an agricultural-based economy, wastage is a concern and so the government with the help of U.S. technology is developing the cold chain sector. Therein lies an opportunity for those looking to invest in this sector with improved storage and transportation techniques.

Opportunities to Agricultural Sector in India

•Food processing sectorIndia has an abundant supply of food yet only a small portion of these foods is processed. Nevertheless, this industry is still one of the highest in the country. Advanced methods of food processing are still to be introduced into this country. Though some top global players such as Nestle and PepsiCo have presence in India, there is still huge potential in the Indian food processing and packaging industry.•Poultry sectorThere is high demand for poultry and this poses as a great target for consumers due to their increasing income rates. This sector prides itself in being one of the largest producers of eggs and poultry meat. Innovation and advancement by foreign companies can further boost sector production and raise industry standards.

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