economicsm2 2AGRICULTURE

8/14/2019 economicsm2 2AGRICULTURE

1/29

AGRI CULTUR EGRI CULTUR EINDIA is primarily anINDIA is primarily an

Agriculture countryAgriculture country

Agriculture is the primeAgriculture is the prime

industryindustry

75% depend on agriculture75% depend on agriculture..


2/29

AgricultureAgriculture

In most of the developedIn most of the developed

and industrializedand industrializedcountries of to- daycountries of to- day

agriculture developmentagriculture development

preceded industrialpreceded industrial

developmentdevelopment..


3/29


Increase in agriculturalIncrease in agricultural

production and productivity willproduction and productivity will

lead to more savings which canlead to more savings which can

be used for either furtherbe used for either further

development of agriculture or fordevelopment of agriculture or for

non agricultural occupations asnon agricultural occupations aswell as industry.well as industry.


4/29


The first and foremost role ofThe first and foremost role ofagriculture is its promotion ofagriculture is its promotion of

economic progress in the country byeconomic progress in the country byenlarging the savings of the ruralenlarging the savings of the ruralsector and making them available forsector and making them available forthe development of agriculture.the development of agriculture.

Thus economic development andThus economic development andindustrial development depend onindustrial development depend onagriculture.agriculture.


5/29

OtherthercontributionsontributionsProviding increased foodProviding increased food

supplies and raw materials.supplies and raw materials.

Reduction of death rate/Reduction of death rate/increase of populationincrease of population

Increase in per capitaIncrease in per capitaincomeincome..


6/29

Per cap it a i nc om ee r cap it a i ncom e Per capi taer capi ta income means howincome means how

much each individual receives, inmuch each individual receives, in

monetary terms, of the yearlymonetary terms, of the yearlyincome generated in the country.income generated in the country.This is what each citizen is toThis is what each citizen is toreceive if the yearly nationalreceive if the yearly nationalincome is divided equally amongincome is divided equally amongeveryoneeveryone


7/29

Per capiata ( 2007)er capiata ( 2007) ZimbabweZimbabwe 5555 179179 IndiaIndia 978978 131131 ChinaChina 1660016600 3737

JapanJapan 3400034000 2222 USUS 4580045800 1111 UKUK 4550045500 1212

QatherQather 7280072800 33 NorwayNorway 8400084000 22 LuxemburgLuxemburg 105000105000 11


8/29

COUNTERAC TSOUNTERAC TSINFLA TIONNFLA TION With increased income, the people willWith increased income, the people will

demand more food and clothing anddemand more food and clothing andother consumer items. Shortage in theother consumer items. Shortage in thesupply of food and raw materials wouldsupply of food and raw materials would

result in inflation. Economicresult in inflation. Economicdevelopment will be slowed down duedevelopment will be slowed down dueto increasing costs.to increasing costs.

To counteract inflation and to ensureTo counteract inflation and to ensure

growth and stability, the agriculturegrowth and stability, the agriculturesector should continue to increasesector should continue to increaseproduction in proportionate to theproduction in proportionate to thedemanddemand


9/29

Pr ovid es m ark et forr ovid es m ark et formanufactured goodsanufactured goods Agricultural sector helpsAgricultural sector helps

economic growth by providingeconomic growth by providing

markets for manufactured goodsmarkets for manufactured goods

in the industrial sector.in the industrial sector.

Increased agriculturalIncreased agricultural

productivity will lead to increasedproductivity will lead to increased

income of the farmersincome of the farmers


10/29

Ensur e s upply of labor innsur e s upply of labor inindustr yndustr y The surplus agricultural labor canThe surplus agricultural labor can

be transferred to industries wherebe transferred to industries where

the marginal productivity of thethe marginal productivity of the

laborer will be higher, thus thelaborer will be higher, thus the

total productivity will go uptotal productivity will go up


11/29

Role of a gric ultu reole of a gric ultu re Source of livelyhood(75%)Source of livelyhood(75%) Largest employment (70%)-big industrialLargest employment (70%)-big industrial

sectors provide only 10%sectors provide only 10% Supplies raw materialsSupplies raw materials Transport system depends on agricultureTransport system depends on agriculture

(get bulk business from movement of(get bulk business from movement ofagriculture goods)agriculture goods)

Supplies food for people and fodder for cattle.Supplies food for people and fodder for cattle.

Export sector depends on agriculture (jute,Export sector depends on agriculture (jute,tea, oilseeds, spices, tobacco etc)tea, oilseeds, spices, tobacco etc)


12/29


13/29

Employ ment inmploy ment inag ric ultu reg ric ultu re In India , agriculture sector is the largestIn India , agriculture sector is the largest

employment providing sector.employment providing sector. 1978/831978/83 55thth FYPFYP 74%74% 19941994 INDIAINDIA 65%65% 19931993 BANGLADESHBANGLADESH 67%67% 19931993 CHINACHINA 65%65% 19931993 PAKISTANPAKISTAN 48%48% FRACE/JAPAN/GERMANYFRACE/JAPAN/GERMANY 4to5%4to5% USA/UKUSA/UK Below 2%Below 2%


14/29

Disti ncti on betwee ni sti ncti on betwee nagri cul ture and industrygri cul ture and industry

Produces goods meant for a

comfortable living.

Produces food for people

Price makerPrice taker

Not that tough as

agriculture

Management of farm is

tough

Less significantDependent on Natue

Depends on technology and

products

Gestation period is large

Agriculture commodities

cannot be produced withindustrial products

Industrial goods can be

produced with agriculture

Man can live withoutMan cannot live without

agriculture

INDUSTRYAGRICULTYRE


15/29

e a o ns p e weena o ns p e weenagri cul tur al and non-gri cul tur al and non-agri cul tur al sectorsgri cul tur al sectors Non agricultural sectors ie transport, trade, &Non agricultural sectors ie transport, trade, &

commerce and agricultural sector arecommerce and agricultural sector aremutually dependentmutually dependent

Agriculture sector feeds the million of peopleAgriculture sector feeds the million of peoplein all sectors and provides raw materials forin all sectors and provides raw materials forindustriesindustries

In turn, non-agricultural sectors help theIn turn, non-agricultural sectors help theagricultural sector for its inputs, transportagricultural sector for its inputs, transportand marketing.and marketing.

For example, wheat is produced byFor example, wheat is produced byagricultural sector. Processing of wheat intoagricultural sector. Processing of wheat intoflour , bread and cake is done by industrialflour , bread and cake is done by industrialsectorsector


16/29

Probl ems of I ndi anrobl ems of I ndi anAgri cul turegri cul ture1.1. DiversityDiversity India is a vast country exhibiting differentIndia is a vast country exhibiting different

characteristics and diversities. The naturecharacteristics and diversities. The nature

of soil, the amount of rainfall, availability ofof soil, the amount of rainfall, availability ofwater for irrigation, agricultural practices,water for irrigation, agricultural practices,

type of holding etc from region to region.type of holding etc from region to region.

We have semi-desert regions, areas prone toWe have semi-desert regions, areas prone to

floods, areas depending on rains.floods, areas depending on rains. Deficiency of N,P,K vary place to placeDeficiency of N,P,K vary place to place


17/29

Probl ems of I ndi anrobl ems of I ndi anAgri cul turegri cul ture 2.2. Multiplicity of CropsMultiplicity of Crops The large differences in soil andThe large differences in soil and

climate conditions make it possibleclimate conditions make it possible

to grow a variety of crops. India,to grow a variety of crops. India,

compared to other countries,compared to other countries,

produces different types of foodproduces different types of food

grains and raw materials. Thoughgrains and raw materials. Thoughthis is good in one respect, it leadsthis is good in one respect, it leads

to uncertainties that may not helpfulto uncertainties that may not helpful

to the economy.to the economy.


18/29


19/29

Probl ems of I ndi anrobl ems of I ndi anAgri cul turegri cul ture 44.. unequal distribution of landunequal distribution of landWhile few farmers own largeWhile few farmers own large

areas of land , a very largeareas of land , a very large

number of people have verynumber of people have verylittle.little.

12%-owns two thirds of total12%-owns two thirds of total

agricultural landagricultural land 50%-2%(work as tenants and50%-2%(work as tenants and

laborers of rich land lords andlaborers of rich land lords andthey could not make anythey could not make anyinvestment.investment.


20/29

Probl ems of I ndi anrobl ems of I ndi anAgri cul turegri cul ture 5.5. growing indebtednessgrowing indebtedness 6.6. povertypoverty 7.7. low productivitylow productivity

8.8. vast unemployment andvast unemployment andunderemploymentunderemployment

9.9. Other factors (poor transport,Other factors (poor transport,marketing, lack of credit facilities,marketing, lack of credit facilities,

unproductive cattle populations,unproductive cattle populations,uneconomic holding, lack of wateruneconomic holding, lack of watersupply etc etc )supply etc etc )


21/29

GREENGREEN

REVOLUTIONREVOLUTION

UNI. TEXT PAGE NOS-80/86UNI. TEXT PAGE NOS-80/86


22/29

GREE N REVO LUT IO NREE N REVO LUT IO N GREEN REVOLUTION is theGREEN REVOLUTION is the

spectacular advance that has takenspectacular advance that has takenplace in agriculture through theplace in agriculture through theconcerted and continued efforts ofconcerted and continued efforts ofmany agricultural scientists.many agricultural scientists.

It signifies a sudden jump in the yieldIt signifies a sudden jump in the yieldper acre.per acre.

Boosting agricultural production toBoosting agricultural production toarrest starvation and death has beenarrest starvation and death has beenthe objective this.the objective this.


23/29

Parts of GreenParts of Green

RevolutionRevolution Wonder seedsWonder seeds -shorter duration/high yield-shorter duration/high yield FertilizersFertilizers-NPK ( Application of fertilizers-NPK ( Application of fertilizers

has been increased from 1.9 kg per hectarehas been increased from 1.9 kg per hectarein 1960/61 to 72.5 kg per hectare in 1990/91in 1960/61 to 72.5 kg per hectare in 1990/91

Improved water supply water managementImproved water supply water managementis an essential part of the program.is an essential part of the program.According to M.S.Viswanathan, formerly ofAccording to M.S.Viswanathan, formerly ofICAR bad water management is the cause ofICAR bad water management is the cause oflow productivity in rice, and in many partslow productivity in rice, and in many partsof India, low yields are not due to lack ofof India, low yields are not due to lack of

water but due to excess of itwater but due to excess of it


24/29

Pa rts o f Greena rts o f GreenRevo lu tio nevo lu tio n Improved PracticesImproved Practices

Modern machinery likeModern machinery like

tractors, harvesters, pumptractors, harvesters, pumpsets are to be used in placesets are to be used in place

of old implements andof old implements and

practicespractices..


25/29

MERI TS OF GREE NERI TS OF GREE NREVOLUT IONEVOLUT ION The green revolution attempts toThe green revolution attempts to

produce food grains on a massive scaleproduce food grains on a massive scale

in the shortest period possible to see ain the shortest period possible to see a

day of self sufficiency in food grains.day of self sufficiency in food grains. Created a change in the mentalCreated a change in the mental

attitude towards better farming.attitude towards better farming.

New technology created employmentNew technology created employment

potential and higher wage ratespotential and higher wage rates

Increased farm income.Increased farm income.


26/29


27/29


28/29


29/29

Documents

economicsm2 2AGRICULTURE