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Prepared by,

Mithil Gandhi
gandhi.mithil@gmail.com

Good facts:

 12% of world’s 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 India’s
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 don’t respect this resource

• Scarcity of ground water detoriation because of over usage.

 Low soil fertility
 Climate change
 Food wastage

Need of today’s 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

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