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Study of indian agriculture sector

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India has some positive factors related to agriculture including being the third largest producer of food grains and the largest producer of milk in the world. However, agriculture's contribution to GDP has declined significantly from 51% to 15% despite still employing the majority of the population. There are also issues such as low productivity, high wastage of food and water, and many small landholdings. The challenge is how to continue feeding India's growing population while ensuring sufficient profits for farmers and addressing resource constraints like limited land and water. Potential solutions include increasing investment in food processing, storage, irrigation and other infrastructure to reduce inefficiencies and waste.

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Prepared by, Mithil Gandhi gandhi.mithil@gmail.com
Good facts: 12% of worlds farm land is in India India is 3rd Largest food grain producers India is 2nd largest fruit & vegetable producers India is the Highest milk producers in the world Agriculture supports more than 70% of the population (direct & indirect) Agriculture contributes to approx 15% of GDP Agriculture contributes 21% of Total Exports, and Supplies Raw materials to Industries Bad Facts: Agriculture Contributes to ONLY 15% of GDP (as compare to 51% of GDP in 1951) Indian is the Largest waster of food India has 0.3 H per person land for farming population as compare to international average of 11H
Macro Scenario: Though the first year of the 12th Five year plan has witnessed approx 5% growth in GDP, economy is expected to grow between 6 to 8% in the coming years of current fie year plan When Economy is growing at approx 6% per year, the growth in the agriculture is around 3.7% (It averaged at 1.9% between 1997 to 2005) When our IT, software & manufacturing exports are growing YoY, the agricultural exports are stagnant at less that 11% Micro scenario: Per capita income is continuously rising which is a catalyst for increase in the demand of agricultural products 6 to 8 per cent growth of the economy as a whole is expected to generate the demand to support 4 per cent growth in agriculture Concern: Agriculture in India is entitled for many subsidies like fertilizer subsidy, electricity subsidy, lower water usage charges, diesel subsidy, etc
The challenge is how to feed Indias growing population with rising incomes, but limited land and water resources while ensuring that farmers get enough profit to prosper
Fertilizer Abuse: Use of fertilizer grew from 0.5 kg in 1950 to 7 kgs in 1966-67 (green revolution) Reduction in farmable land Fragmentation of agriculture land Agriculture indebtedness: 71K Cr loan waiver every year. 10K farmers commit suicide every year. No consumer protection cap on microfinance Water wastage: Not more than 28% of rains water is utilized Water pricing is old & hence, people dont respect this resource Scarcity of ground water detoriation because of over usage. Low soil fertility Climate change Food wastage
Need of todays farmers: Money (loans & credit facility) Advice Basic technology Energy Water Govt. focused on: Food processing Warehousing Logistics
Storage & Warehousing: Microfinance Financial risk management instruments (crop insurance): Food processing Industry: IT & mobile technology in agriculture: Fertilizer Industry: Irrigation Industry:
FDI in retail: FDI in retail is asked to invest 50% of the total investment in the back- end infrastructure. This will lead to reduction in the waste 30% of the sourcing to be done from India small & micro industry. This will lead to removal of middleman & this will fetch higher prices of their products to the farmers. National food security bill: Demand of agriculture products to rise Nutri-Farms: Introducing new crop varieties that are rich in micro- nutrients New Banking License: The new licensing guidelines require new banks to open branches in unbanked rural areas and ensure credit to priority sectors like agriculture and small scale industry.
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Study of indian agriculture sector

  • 1. Prepared by, Mithil Gandhi gandhi.mithil@gmail.com
  • 2. Good facts: 12% of worlds farm land is in India India is 3rd Largest food grain producers India is 2nd largest fruit & vegetable producers India is the Highest milk producers in the world Agriculture supports more than 70% of the population (direct & indirect) Agriculture contributes to approx 15% of GDP Agriculture contributes 21% of Total Exports, and Supplies Raw materials to Industries Bad Facts: Agriculture Contributes to ONLY 15% of GDP (as compare to 51% of GDP in 1951) Indian is the Largest waster of food India has 0.3 H per person land for farming population as compare to international average of 11H
  • 3. Macro Scenario: Though the first year of the 12th Five year plan has witnessed approx 5% growth in GDP, economy is expected to grow between 6 to 8% in the coming years of current fie year plan When Economy is growing at approx 6% per year, the growth in the agriculture is around 3.7% (It averaged at 1.9% between 1997 to 2005) When our IT, software & manufacturing exports are growing YoY, the agricultural exports are stagnant at less that 11% Micro scenario: Per capita income is continuously rising which is a catalyst for increase in the demand of agricultural products 6 to 8 per cent growth of the economy as a whole is expected to generate the demand to support 4 per cent growth in agriculture Concern: Agriculture in India is entitled for many subsidies like fertilizer subsidy, electricity subsidy, lower water usage charges, diesel subsidy, etc
  • 4. The challenge is how to feed Indias growing population with rising incomes, but limited land and water resources while ensuring that farmers get enough profit to prosper
  • 5. Fertilizer Abuse: Use of fertilizer grew from 0.5 kg in 1950 to 7 kgs in 1966-67 (green revolution) Reduction in farmable land Fragmentation of agriculture land Agriculture indebtedness: 71K Cr loan waiver every year. 10K farmers commit suicide every year. No consumer protection cap on microfinance Water wastage: Not more than 28% of rains water is utilized Water pricing is old & hence, people dont respect this resource Scarcity of ground water detoriation because of over usage. Low soil fertility Climate change Food wastage
  • 6. Need of todays farmers: Money (loans & credit facility) Advice Basic technology Energy Water Govt. focused on: Food processing Warehousing Logistics
  • 7. Storage & Warehousing: Microfinance Financial risk management instruments (crop insurance): Food processing Industry: IT & mobile technology in agriculture: Fertilizer Industry: Irrigation Industry:
  • 8. FDI in retail: FDI in retail is asked to invest 50% of the total investment in the back- end infrastructure. This will lead to reduction in the waste 30% of the sourcing to be done from India small & micro industry. This will lead to removal of middleman & this will fetch higher prices of their products to the farmers. National food security bill: Demand of agriculture products to rise Nutri-Farms: Introducing new crop varieties that are rich in micro- nutrients New Banking License: The new licensing guidelines require new banks to open branches in unbanked rural areas and ensure credit to priority sectors like agriculture and small scale industry.