UPSC MainsECONOMICS-PAPER-II201715 Marks
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Q22.

Even though India is self-sufficient in the production of foodgrains, Indian agriculture is faced with some major challenges. Elucidate.

How to Approach

This question requires a nuanced understanding of Indian agriculture. The approach should be to first acknowledge India’s foodgrain self-sufficiency, then systematically outline the challenges faced by the sector. Focus on economic, infrastructural, technological, and socio-political challenges. Structure the answer by categorizing these challenges for clarity. Include relevant data, schemes, and examples to support the arguments. A balanced conclusion highlighting the need for holistic reforms is crucial.

Model Answer

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Introduction

India achieved self-sufficiency in foodgrain production, particularly after the Green Revolution in the 1960s and 70s. However, this achievement masks significant underlying challenges that continue to plague the agricultural sector. While production levels are adequate to meet domestic demand, issues related to productivity, farmer incomes, sustainability, and climate change resilience remain pressing concerns. The sector, employing over 40% of the workforce, faces a complex interplay of economic, social, and environmental hurdles that hinder its full potential and contribute to agrarian distress.

Economic Challenges

Despite self-sufficiency, Indian agriculture faces substantial economic challenges:

  • Small and Marginal Landholdings: Approximately 86% of farmers are small and marginal, with limited access to resources and economies of scale. This leads to lower productivity and profitability. (Source: Agricultural Census 2015-16)
  • Low Farmer Incomes: Average farm household income remains significantly lower than non-farm incomes, leading to indebtedness and farmer distress. According to the National Sample Survey Office (NSSO) 70th round, the average monthly income of a farm household was ₹6,426.
  • Market Imperfections: Lack of efficient marketing infrastructure, inadequate storage facilities, and the dominance of intermediaries result in farmers receiving a small share of the final consumer price.
  • High Input Costs: Rising costs of seeds, fertilizers, pesticides, and irrigation contribute to increased production expenses, squeezing farmer margins.
  • Limited Access to Credit: Many farmers, particularly small and marginal ones, struggle to access formal credit, forcing them to rely on informal sources with high interest rates.

Infrastructural Challenges

Deficiencies in infrastructure severely hamper agricultural development:

  • Irrigation Deficit: Despite being a monsoon-dependent economy, only about 48.6% of agricultural land is irrigated (Source: Ministry of Agriculture & Farmers Welfare, 2023). This makes agriculture vulnerable to rainfall variability.
  • Inadequate Storage Facilities: Significant post-harvest losses occur due to a lack of adequate storage infrastructure, estimated at around 16% (Source: Ministry of Food Processing Industries).
  • Poor Transportation Network: Inadequate rural road connectivity and inefficient transportation systems increase transportation costs and delay the delivery of produce to markets.
  • Lack of Cold Chain Infrastructure: Limited cold chain facilities lead to spoilage of perishable agricultural commodities, reducing their market value.

Technological Challenges

Technological adoption in Indian agriculture remains low:

  • Low Mechanization: The level of farm mechanization is significantly lower compared to developed countries, leading to lower productivity and higher labor costs.
  • Limited Use of High-Yielding Varieties (HYVs): While HYVs were crucial during the Green Revolution, their adoption has plateaued, and there is a need for developing climate-resilient varieties.
  • Insufficient Extension Services: Inadequate extension services hinder the dissemination of information about new technologies and best practices to farmers.
  • Digital Divide: Limited access to digital technologies and information restricts farmers’ ability to access market information, weather forecasts, and other valuable resources.

Socio-Political Challenges

Several socio-political factors contribute to the challenges faced by Indian agriculture:

  • Land Fragmentation: Successive divisions of land holdings across generations lead to fragmentation, making farming less efficient.
  • Tenancy Issues: Lack of secure land tenure for tenant farmers discourages investment in land improvement.
  • Ineffective Land Reforms: Implementation of land reforms has been slow and uneven, leading to inequalities in land ownership.
  • Climate Change Impacts: Increasing frequency of extreme weather events like droughts, floods, and heat waves pose a significant threat to agricultural production.
  • Policy Implementation Gaps: Despite numerous policies and schemes, effective implementation remains a challenge due to bureaucratic inefficiencies and corruption.
Challenge Category Specific Issues
Economic Small landholdings, low incomes, market imperfections, high input costs
Infrastructural Irrigation deficit, inadequate storage, poor transportation, lack of cold chain
Technological Low mechanization, limited HYV adoption, insufficient extension services
Socio-Political Land fragmentation, tenancy issues, climate change, policy gaps

Conclusion

While India has achieved foodgrain self-sufficiency, the agricultural sector continues to grapple with a multitude of challenges. Addressing these requires a holistic approach encompassing economic reforms, infrastructure development, technological innovation, and effective policy implementation. Investing in irrigation, storage, and transportation infrastructure, promoting diversification, strengthening extension services, and ensuring fair prices for farmers are crucial steps. Furthermore, building climate resilience and empowering farmers through access to credit and information are essential for sustainable agricultural development and ensuring the long-term well-being of the rural population.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Green Revolution
A period in the mid-20th century that introduced high-yielding varieties of seeds and increased use of fertilizers and irrigation, leading to a significant increase in foodgrain production.
Crop Diversification
The practice of growing a variety of crops instead of relying on a single crop, to reduce risk, improve soil health, and enhance income.

Key Statistics

Approximately 58% of the rural households in India depend on agriculture as their primary source of livelihood.

Source: NSSO 77th Round Report (2018-19)

Food processing accounts for approximately 32% of India’s total food market.

Source: Ministry of Food Processing Industries (as of knowledge cutoff)

Examples

Maharashtra’s Grape Farmers

Grape farmers in Maharashtra often face challenges related to market access and price volatility. They are heavily reliant on exports, and fluctuations in international demand can significantly impact their incomes. This highlights the vulnerability of farmers specializing in horticultural crops.

Frequently Asked Questions

What is the role of MSP (Minimum Support Price) in addressing agricultural challenges?

MSP aims to provide a guaranteed price to farmers for their produce, reducing price risk and ensuring a minimum level of income. However, its effectiveness is debated, with concerns about procurement inefficiencies and its impact on market distortions.

Topics Covered

EconomyAgricultureRural DevelopmentFood SecurityAgricultural ChallengesRural Economy