Agricultural productivity

AGRICULTURAL PRODUCTIVITY 

Agricultural Productivity of both land and labour is low in India. There are variations in productivity within the country and it is also low if compared to other countries of the world . It also provides that what measures should be adopted to improve the productivity of food and non-food crops and what measures are being adopted by the govt. to improve the productivity.

CAUSES OF LOW PRODUCTIVITY IN AGRICULTURE 

 Millions of people still suffer from malnutrition and under nutrition which leads to starvation. There is no single reason for low productivity in agriculture in India. The causes of low productivity are as follows :

(A) General Causes

1.Excessive Pressure of population on land. The heavy pressure of population on land is caused by the limited growth of employment opportunities in the non-agricultural sector for rural people and rapid growth of rural population. In 2011, about 52 percent of the population were employed in the agriculture-sector. The increasing population is largely responsible for subdivision, fragmentation of land holdings that results into low productivity in agriculture.

2.Social Environment. The social environment in tems of illiteracy, superstitious attitude and unresponsive behaviour towards the new technology is also a major limiting factor to the improvement in the agricultural productivity. As Such, farmers are against the use of  manure and chemical fertilizers.Besides, they are prejudiced against killing of monkeys and rats at the farm.Further, the hunan factor engaged in the agriculture sector is most unsatisfactory due to poor health and hygiene conditions

3.Land Degradation. The natural resource degradation in rural areas has occured due to two major problems. One is the increasing population pressure that has resulted into decline in forest cover and second is the erosion to loss of top-soil which is very difficult to reverse. The increased land degradation is mainly due to the increased use of chemical fertilizers and low quantity of canal water. This has resulted into loss of nutrients in the land and fall in the productivity levels.

4.Lack of General infrastructural facilities. The economic rural infrastructural facilities are inadequate in terms of availability of road, transportation facilities electricity and power. The Government's expenditure on total rural development has declined tremendously. There is a marked slowdown in capital formation in the agriculture sector. 

(B) Institutional Causes

In adequate Agricultural Capital Formation. Agriculture sector cannot make substantial contribution to the economic development of the country.The capital formation in the agriculture sector particularly the public capital formation in the agriculture sector is declining. The investment in agriculture as a proportion of GDP has fallen from 1.92 percent in l1990 to 131 percent in 2000. After 2000, it has increased. The depressed capital formation has resulted into low agriculture productivity.

1.Defective land Tenure System. The exploitative character of land tenure system in the farm of Zamindari System has reduced the capacity, incentive and motivation of the cultivators to improve productivity. The exploitative practices in terms of excessive rent, insecurity of land tenure and no landownership rights causes cultivators to share large portion of output with landowners. This has resulted in lack of resources and interest of farmers to introduce technological improvements and thus increase productivity.

2.Uneconomic Land Holdings. The average land-holding in India is not only small in size but split into pieces and scattered due to sub-division and fragmentation of land. The average land holding is just 1.16 hectares in 2010-1l agriculture census in India. In USA the average size of holding is 122hectares. This has resulted into the uneconomic land holding making investment in improved technology and inputs unavailable. This has caused reduction in land productivity.

3.Inadequate Credit facilities. There has been a drastic reduction institutional credit for agriculture. The most disturbing trend of institutional financing in the recent financing of farmers has declined tremendously. Thus, a large section of farmers has to depend upon non-institutional credit system like moneylenders, and traders that charge exorbitant rate of interest. The investment for improved seeds, irrigation facilities and other improved technological requirements to increase land productivity is adversely affected due to paucity of funds.

4. Inadequate Marketing facilities. The defective marketing system also poses difficulties to the farmers. The farmers do not get a due reward from the sale of his produce. The middle man takes away portion of their profits. Unless Farmers are guaranteed fair and remunerative prices there is little inducement for agricultural output to increase. Indian marketing has no facilities of godown and warehousing where the cultivators may keep their produce for a better price. Moreover, they lack transportation facilities. This results in low price of the produce.

(C) Technical Causes

1.Technological Backwardness. Most of farmers use traditional agriculture methods mainly due to paucity of finance. The use of high-yielding variety seeds and fertilizers is very limited.  Government has withdrawn from provisioning of HYV seeds developed in laboratory to the farms. Formers have to pay exorbitant prices to the private suppliers for the low quality seed variety which has adverse consequences on the agricultural productivity.

2. Increasing Input Cost. The increase in the input cost due to reduction in subsidies for fertilizers and better seeds and increase in cost of power are responsible for the deceleration in the agriculture growth in the recent yean

3. Inadequate Irrigation facilities. The vast proportion of cultivable land in India is rain-fed. Further, the infrastructure for irrigation is highly underdeveloped due to defective management as revealed by the fact that only 44.91% of the total gross cropped area was irrigated in the year 2010-11.A good monsoon results in a robust growth for the economy as a whole, while a poor monsoon leads to a sluggish growth. As rainfall is often insufficient, uncertain and irregular, it leads to low productivity. Further, the Government's expenditure on irrigation coverage and flood control has witnessed a declining trend during the reform period. The constant and regular supply of water is required to use chemical fertilizers and other technological resources to boost up production.

 SCOPE AND MEASURES FOR AGRICULTURAL DEVELOPMENT.

Government has initiated various measures to overcome the problem of low agricultural productivity but the following measures are required to strengthen the agricultural development :

1. Effective Implementation of Land Reforms. The land reforms in terms Of Zamindari Abolition, ceiling and redistribution of land tenure relations,consolidation of small and scattered holdings, minimum wages of landless labour etc. needs to be effectively implemented. This will help to provide incentives and motivation to farmers to improve productivity and investment in agriculture sector. It will also have social implication by providing due share in the output. The strong political will and better administrative skills are required to operationalize these reforms at the grass root level.

2.Greater Usage of Modern Technology. The components of modern technology in terms of improved seeds, fertilizers and pesticides have to be made available easily to the farmers at fair prices. Farmers are required tobe given training about the usage of these components especially fertilizers and chemical pesticides. The services of constant expertise, guidance and counselling about seeds sowing, time of sowing etc needs to be developed.In fact, a second green revolution is required to distribute these technological inputs including improved variety of seeds to the cultivators.

3.Better Credit facilities. The timely and sufficient financial assistance is the precondition to improve usage of better technlogy. Government had launched various schemes and institutions to improve agricultural credit such as establishment of cooperative banks, rural branches of nationalized banks,grameen banks etc. However, there isa lack of coordination under the multi-agency credit system. Further there is an absence of appropriate motivation and knowledge especially amongst commercial banks to provide agriculture credit in the rural areas. In fact, the rural credit system should be developed as comprehensive financial cum service constancy organization that provides financial and farm related help to the farmers.

4.Restructuring Cropping Pattern. The scientific Research has mainly focus upon two major crops i.e. wheat and rice. The break through in terms of improved varities of. seeds has to be explored for other crops. In Andhra Pradesh, Karnataka, Tamil nadu, Madhya Pradesh, Mahrashtra, Gujarat and Rajasthan more than one crop is taken on less than 30 percent of area under cultivation. This shows that there is considerable scope to raise output through an expansion of area under double cropping.

5. Development of Irrigation facilities. The main obstacle in the exploitation an use of modern technology is the water shortage. The inter-linking of river projects needs to be implemented speedily to reduce the ill-effects of floods and droughts. The greater use of dry and commercial cropping that requires lesser use of water should be encouraged. The surface-irrigation and water-pumping arrangements should be increased.

6. Development of Research Institutes. The research labs and agricultural universities have to be established, upgraded and sustained. The problems such as lack of resources, equipments nad experts in these institutes need tobe addressed immediately. The weakening of link between laboratory research and application on farms has to be minimized.

7.Betterment of Warehousing and Distribution Services. The warehousing facilities are so under-developed that it renders the stored goods unsuitable for consumption. It is paradoxical that the country suffers from deficient food supplies in many regions and the food grains are rotten in warehouses. The Modern warehousing facilities, transportation system and marketing method needs to be developed to increase the availability of food to the masses. This Would provide incentives to marketable surplus among farmers and go a longway to improve productivity. The public-private partnership may be encouraged to increase investment in warehousing services.

8.Population Control. The continues growth in the population especially in rural areas is the major cause of uneconomic land holding which limits the usage of modern technology. Thus the family planning and population control remains national periority.Introduction of Cooperative Farming and Marketing. The cooperatives in India are suffering due to strict Government controls and legislations. The cooperative should be given greater operational freedom and allowed to enlarge their activities including banking and marketing of agro products.

GOVERNMENT MEASURES FOR AGRICULTURE DEVELOPMENT AGRICULTURE POLICY, 2000

The Government on 28th July 2000 made public a National Agriculture Policy aimed at catapulting agricultural growth to over 4 percent per annum by 2005. The growth is to be achieved through a combination of measures including structural, institutional,agronomics and tax reforms discussed as follows :

•Price protection to farmers in the post-WTO regime when all the quantitative restrictions are removed.

•Private sector participation would be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow, assured markets for crop production; especially of oilseeds, cotton and horticultural crops.

•Private sector Investment in agriculture would be encouraged, particularly in areas like agricultural research, human resources development, post harvest management and marketing.

•Government would enlarge coverage of future markets to minimise the wide fluctuations in commodity prices as also for hedging their risks. The policy hoped to achieve sustainable development of agriculture, create gainful employment and raise standards of living

•The policy envisages evolving a National Livestock Breeding Strategy"meet the requirement of milk., meat, egg and livestock products and to enhance the role of draught animals as a source of energy for farming operations.

•Plant varieties would be protected through a legislation to encourage research and breeding of new varieties. Development of animal husbandry. poultry,dairy and aquaculture would receive top priority.

•The restrictions on the movement of agricultural commodities throughout hThe structure of taxes on foodgrains country would be progressively dismantled. and other commercial crops would be reviewed.

•The excise duty on materials such as farm machinery and implements and fertilizers used as inputs in agricultural production., post harvest storage and processing would be reviewed.

•Appropriate measures would be adopted to ensure that agriculturists, by and large remained outside the regulatory and tax collection system.

•Rural electrification would be given high priority as a prime mover for agricultural development.

•The use of new and renewable sources of energy for irrigation and other agricultural purposes would be encouraged.

•Progressive institutionalisation of rural and farm credit would be continued for providing timely and adequate credit to farmers.

•Endeavour would be made to provide a package insurance policy for the farmers, right from sowing of crops to post-harvest operations including market fluctuations in the prices of agricultural produce.

•The agriculture policy, 2000 emphasized on the organizational and institutional changes to improve agriculture growth.

National Policy for Farmers, 2007

Goverment of India has approved the National Policy for farmers, 2007 taking into account the recommendations of the National Commission on famers and after consulting the state Goverments. The National Policy for Farmers, among other things, has provided for a holistic approach to development of the farm sector. The focus will be on the economic well being of the farmers in addition to improved production and productivity.The broad areas of its coverage include

•Water Use Efficiency. The stress on awareness and efficiency of water use will be given.

•Asset Reforms. To ensure that a farmer household in villages either possessor has access to a productive asset or marketable skill.

 •New technologies like biotechnology, information and communication technology (ICT), renewable energy technology space applications and nano-technology would be encouraged for improving productivity per unit of land and water on a sustainable basis.

•National Agricultural Bio-security system would be established to organize a coordinated agricultural biosecurity programme.

•Seeds and Soil Health. Quality seeds, disease free planting material and soil health enhancement hold the key to raising small farm productivity. Every farmer is to be issued with a soil health passbook containing integrated information on farm soils with corresponding advisories.

•Support Services for Women. Appropriate support services like crunches,child care centres an adequate nutrition needed by women working in fields would be funded.

•Credit and Insurance. The financial services would be galvanized for timely,adequate and easy reach to the farmers at reasonable interest rates.

•Gyan Chaupals will promote learning of famers thereby strengthening extension services.

•Necessary steps would be taken to put in place an appropriate social securities scheme for farmers.

•Minimum/Support Price (MSP) mechanism to be implemented effectively across the country so as to ensure remunerative prices for agricultural produce.

•Food Security basket is to be enlarged to include nutritions millets such as bajra, jowar, ragi and millets, mostly grown in dry and farming areas.