Agriculture : New Strategy, Economy Traditional UPSC Notes | EduRev

Economy Traditional for UPSC (Civil Services) Prelims

UPSC : Agriculture : New Strategy, Economy Traditional UPSC Notes | EduRev

The document Agriculture : New Strategy, Economy Traditional UPSC Notes | EduRev is a part of the UPSC Course Economy Traditional for UPSC (Civil Services) Prelims.
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New Strategy

  • Various factors that led to the introduction of new strategy in agriculture were :
  • Continuing stagnation in production on one hand and rapidly increasing demand on the other could be solved in the shortest possible time by only adopting new strategy
  • It was considered as the only way of making a breakthrough in Indian agriculture in the shortest possible time.
  • Scarcity of agricultural inputs and the inability to meet the needs of entire country left only two choices : either have a thin layer of inputs spread over the entire country or to apply concentrated dose in selected and promised areas. The latter choice was opted as it ensured maximum production in the short period.
  • HYV seeds became available during mid - 1960s.
  • Increased agricultural production in a certain region would produce secondary and tertiary effects. 
  • For example increase in foodgrains production would decrease food imports and thereby save scarce foreign exchange resources for other sectors of the economy. 
  • Also increased production of chimerical crops would support expansion of argo-based industries.

Weaknesses
Green revolution has reached level of unsustainability

  • The declining fertility of soil has led to increase in requirement of amount of fertilisers for the same amount of productivity. 
  • Thus cost of production is rising while profit levels are declining. Also, water table is constantly declining.

Growth of capitalist farming 

  • The new agricultural strategy involves heavy investment in seeds, fertilisers, pesticides and water, which is beyond the capacity of small and medium farmers. 
  • The big farmers alone are making heavy investment and consequently the new strategy has helped the growth of capitalist farming in India and has resulted in concentration of wealth in the hands of the top 10 per cent of the rural population.

Growing disparities in income

  • New agricultural strategy has contributed to widening of the disparities in income between regions, between small and large farms and between landowners on one hand and landless labourers and tenants on the other. 
  • Regions well endowed with resources have benefited most from new agricultural technology. 
  • As the new strategy involves use of complex agricultural techniques and inputs, the green revolution has had its most concentrated application on large farms.

Poor response from small farmers 

  • The majority of rural households with little or no land has derived the least benefit from new technology. 
  • High risk involved in the new technology, the limited command over resources and shortage of institutional facilities discourage them to take up agriculture based on new technology.

 

Agriculture Sector (2011–12 prices)

S.No.

Item

2011–12

2012–13

2013–14

1.

Growth in GDP in agriculture & allied sectors

1.2

3.7

 

Share of agriculture & allied sectors in total GDP

18.4

18

18.0

 

Crops

12.0

11.7

11.8

 

Livestock

40

40

3.9

 

Forestry and logging

1.6

1.5

1.4

 

Fishing

0.8

0.8

0.9

2.

Share of agriculture & allied sectors in total GCF

8.6

7.7

7.9

 

Crops

7.4

6.5

6.6

 

Livestock

0.8

0.7

0.7

 

Forestry and logging

0.1

0.1

0.1

 

 Fishing

0.4

0.4

0.5

3.

GCF in agriculture & allied sectors as per cent to GDP of the sector (at current 2011-12 prices)

18.3

15.5

14.8


Labour problem 

  • Green revolution introduced two types of technological innovations: 
  • biological innovations which implies the changes in inputs that increase productivity of land like introduction of HYV seeds and use of fertilisers; and 
  • mechanical innovations which implies the introduction of new equipments like tractors which displace human or bullock labour.
  • While biological innovations are labour absorbing, mechanical innovations are labour saving.

Restricted coverage 

  1. Green revolution has been limited in its coverage in terms of crops, land and region.
  2. The green revolution was confined only to HYV cereals mainly wheat, maize and jowar. But the single crop which has shown continuous rise in area of cultivation, production and productivity is wheat. 
  3. Rice output has also increased but at a relatively slower rate. The cash crops and pulses have not so far been touched by the green revolution.
  4. The second aspect of restricted coverage relates to the limited or small area over which the green revolution has spread. 
  5. This package programme which involves use of HYV seeds and high doses of fertilisers which in turn can be used only in areas of adequate and assured water supply.
  6. The green revolution was restricted only to few regions. Except Punjab, Haryana and the Western Uttar Pradesh, practically the whole country has remained outside the ambit of new agricultural strategy.

Suggestions

  • The green revolution initiated by the new strategy should be extended to all cereals, pulse and non foodgrains like cotton, oil seeds, jute etc.
  • The regions which have remained untouched by the green revolution should also adopt new strategy to catch up with those States which have marched ahead due to success of green revolution there.
  • In order to accelerate the pace of new technology adequate water supply is a must and hence better irrigation facilities must be provided.
  • Adequate credit facilities should be arranged for the small farmers.
  • Intensive cultivation or new technology should be introduced on small farms also so that small farmers are also benefited and it will also contribute significantly in increasing production. For this to happen following measures should be undertaken : 
  1. land reforms should be completed speedily and efficiently so that security of tenure is provided to the cultivating tenants, reduced rents are charged from tenants/share croppers etc; 
  2. small farmers must be given adequate credit facilities; 
  3. arrangements should be made for supply of farm machines on hire; and 
  4. farmers should be encouraged to join cooperatives for cultivation.

 

Production of Crops  (Million tonnes)

Crop

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2nd Adv.
Est. 2015-16

Rice

99.18

89.09

95.98

105.31

105.24

106.54

103.61

Wheat

80.68

80.8

86.87

94.88

93.51

95.91

93.82

Jowar

7.25

6.7

7.00

6.01

5.28

5.39

Bajra

8.89

6.51

10.37

10.28

8.74

9.38

Maize

19.73

16.72

21.73

21.76

22.26

24.35

21.00

Coarse Cereals

40.04

33.55

43.4

42.04

40.04

43.05

38.4

Tur

2.27

2.46

2.86

2.65

3.02

3.29

2.55

Gram

7.06

7.48

8.22

7.7

8.83

9.88

8.09

Urad

1.17

1.24

1.76

1.77

1.9

1.51

Moong

1.03

0.69

1.8

1.63

1.19

1.5

Total Pulses

14.57

14.66

18.24

17.09

18.34

19.27

Total Foodgrains​

234.47

218.11

244.49

259.32

257.13

264.77

——

Groundnut

7.17

5.43

8.26

6.96

4.69

9.67

7.18

Rapeseedand

7.2

6.61

8.18

6.6

8.03

7.96

6.84

Mustard

 

 

 

 

 

 

 

Soyabean

9.91

9.96

12.74

12.21

14.66

11.99

9.13

Total Nine

27.72

24.88

32.48

29.8

30.94

32.88

Oilseeds

 

 

 

 

 

 

 

Cotton*

22.28

24.02

33

35.2

34.22

36.59

30.39

Jute,Mesta**

10.37

11.82

10.62

11.4

10.93

11.58

Sugarcane

285.03

292.3

342.38

361.04

341.2

350.02

346.39

(* Millioin bales of 170 kgs each)             (** Million bales of 180 kgs each)

 
Agricultural Tax
Meaning

  • Broadly, agricultural taxation includes taxes paid by the agriculturists directly and also those borne by them indirectly. 
  • Direct taxes on agriculture comprises mainly of land revenue, cesses and surcharges on land revenue, cesses on crops and agricultural income tax. 
  • As consumers they also pay excise duty, sales tax, import duty, the minor vehicles tax and so on.

Land revenue 

  •  It is the oldest of all taxes and is the most important tax on agricultural land. It is levied and collected by the State government. 
  • The amount collected as land tax has gone up from Rs 48 crores in 1951-52 to Rs 766 crores in 1991-92. 
  • The importance of land tax has however declined in recent times as a result of the introduction and extension of new levies.
  • In 1951-52 land revenue accounted for 17% of the total state tax revenue but by 1991-92 its share was 1.5% now it is less than that.

Tax on capital transaction

  • Another tax, which falls largely (and not exclusively) on farmers is the tax on capital transactions, also known as stamps and registration fees. 
  • This is a tax on the transfer of land and buildings. In 1991-92 the States hoped to collect Rs. 2, 370 crores through this tax. It is however, difficult to verify the amount paid by farmers in buying and selling landed property.

Agricultural income tax 

  • It is levied and collected by the States. Bihar was the first to levy this tax in 1938. At present, the States which have levied agricultural income tax are Assam, West Bengal, Bihar, Uttar Pradesh, Rajasthan, M.P., Chattisgarh, Jharkhand, Orissa, Karnataka, Tamil Nadu and Kerala. 
  • The rates of tax have generally been lower than those applicable to the urban income tax. This tax has always occupied an insignificant role in India- a little over 1% in 1951-52 and about 0.4% in 1991-92 now less tham that. 

Agricultural Marketing

  • Agricultural marketing refers to activities associated with the sales and distribution of agricultural products from the producer (right from the harvest stage) to the consumer.
  • The activities associated are: collecting and storage of goods, their transportation to sale places/mandies, their gradation, settlement of bargains etc.
  • The main methods adopted by Indian farmer to dispose of or market his surplus produce are:
  • he may sell his surplus produce to the village money lender-cum-trader;
  • he may dispose of his produce in the weekly village markets called 'haat' and in fairs; and 
  • he may sell his produce in 'mandies' in small and large towns.

 

Average, Maximum and Minimum Yield of Major Crops 2013-14 (Yield kg/ha)

Crops

All-India average

Maximum

Minimum

Rice

2416

Punjab (3952)

Madhya Pradesh (1474)

Wheat

3145

Punjab (5017)

Andhra Pradesh (500)

Maize

2676

Tamil Nadu (5372)

Assam (898)

Jowar

957

Andhra Pradesh (1661)

West Bengal (280)

Gram

960

Andhra Pradesh (1439)

Tamil Nadu (653)

Tur

813

Bihar (1667)

Andhra Pradesh (542)

Groundnut

1764

Gujarat (2668)

Himachal Pradesh (600)

Rapeseed and Mustard

1185

Gujarat (1723)

Tamil Nadu (241)

Soyabean

1012

Andhra Pradesh (1612)

Uttar Pradesh (577)

Sugarcane

70522

West Bengal (114273)

Jammu & Kashmir (1000)

Cotton*

510

Punjab (750)

Maharastra (358)

*Thousand bales of 170 kg each.

 

Defects In Marketing

  • Agricultural marketing in India is not satisfactory due to following defects:

Poor storage facility

  • Since the warehousing facilities are almost nonexistent in the villages, the farmers have no option but  to store their produce in kuccha storehouse etc. where around 10-20% of the produce is lost due to dampness, rodents, etc. and also the quality of produce deteriorates.

Lack of staying power

  • Indian farmers have no capacity to wait for better prices for the simple reason that they are poor, indebted and do not have access to adequate credit facilities. 

Inadequate transport facilities

  • There are a large number of villages which still do not have access to modern transport facilities like rail, bus and pucca roads to connect them to mandies. As a result farmers are not interested in going to mandies.

Lack of grading and standardisation

  • The farmers in rural areas are not assured of better prices even if their agricultural produce is of better quality.

Large number of intermediaries

  • Presence of large number of intermediaries between the farmer and the final consumer of his produce results in reduced profits to the farmers for selling his produce.

Lack of required information

  • Because of this farmers do not have knowledge about the ruling prices in the markets and as a result have to accept whatever price is quoted to them.

Measures To Improve The system

Government has taken following measures to improve agricultural marketing system:

  1. All India Warehousing Corporation has been set up in 1957 to construct and manage network of warehouses in all towns and mandies.
  2. Cooperative societies are provided necessary financial and technical facilities to encourage warehousing in villages.
  3. Cooperative marketing and processing societies have stated to market agricultural produce of farmers assuring reasonable prices and removing all exploitation of the farmers by intermediaries.
  4. Rural transport given a lot of emphasis under five year plans and considerable progress made.
  5. Regulated markets started to remove the malpractices of brokers.
  6. Recommendation of Agricultural Prices Commission for fixation of minimum support prices and procurement prices for various commodities being used to stabilise foodgrain prices.
  7. Government is marketing agricultural produce through Food Corporation of India (FCI), the Cotton Corporation of India (CCI), etc.
  8. Grading and standardisation of agricultural produce, first introduced for three commodities, under Agricultural produce (Grading and Marketing) Acts. 1937, extended to over 150 commodities. Grades are drawn up by Central Quality Control Laboratory at Nagpur and various regional subsidiary laboratories on whose basis authorised packers are issued AGMARK (agricultural Marketing) seals.
  9. Metric system of measures adopted in 1958 to replace all old system of weights and measures that were arbitrary and not standardised.
  10. Directorate of Marketing and Inspection set up to coordinate activities of agricultural marketing of various agencies and the agricultural produces throughout the country.
  11. Considerable publicity of prices prevailing in markets is given through AIR, Doordarshan, newspapers, displays in market places etc.


Cooperative Marketing

  • Cooperative marketing involves organisation of individual farmers, particularly small and marginal farmers, into a cooperative society into which they all pool their produce and market it collectively. 
  • The sale proceeds are then distributed among the individual members in proportion to their share in the produce marketed. 
  • Cooperative marketing is of great significance for Indian context because it ensures fair price to small and marginal farmers for their produce.
  • The various advantages of cooperative marketing system are:
  1. Increases bargaining power of farmers: Farmers will be less prone to exploitation and malpractices by intermediaries and have more bargaining power if they market their produce by joining hands through cooperatives rather than marketing individually.
  2. Direct dealings with final buyers: Cooperatives can deal directly with final buyers eliminating the intermediaries thus ensuring all the profit returns to the farmers.
  3. Bulk handling economical: Bulk handling reduces cost of collecting produce, their storage, transportation etc.
  4. Provision of infrastructural facilities: Cooperatives with large resources can provide appropriate infrastructural facilities such as special types of godowns and warehouses in villages and mandies, transport, arrangements for preventing perishing of perishable products, facilities of their own for grading of goods and arrangement for providing up-to-date information about the market. 
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