17 Trends in Agriculture Production and Productivity

Monica Bansal

1. Learning Outcome:

 

After completing this module the students will be able to: Understand the concepts of Indian Agriculture.

 

Understand the Cropping Trends in Indian Agriculture. Understand the Trends in the Productivity of Land.

 

Understand the Pattern and Land Utilization in India.

 

 

2. Introduction

 

The highest portion of the Indian natural resources consists of land and by far the largest number of its inhabitants is engaged in agriculture. Therefore in any scheme of economic development of the country, agriculture holds a position of basic importance. This module states briefly the main features of the agricultural situation in India. Although Indian agriculture is way back compared to the levels in developed countries, some notable developments have occurred over the years since independence. Large areas which suffered from repeated failures of rainfall have received irrigation; new crops have come to occupy a significant position in the country’s production and trade; the agricultural and industrial economies in the country now exert a powerful influence on one another; problems of rural indebtedness and the exploitative practices of the village moneylender are much less, and finally there is already in the countryside an awakening and a desire for raising standards of living.

 

  3. Cropping Trends in Indian Agriculture

 

A variety of crops is grown in India. The net area sown under these crops is 142.3 million hectares. This constitutes over 46 per cent of the total geographical area of the country. Cropping pattern refers to the distribution of cultivated land among different crops grown in the county. Cropping pattern reveals the nature of agricultural operations. E.g. the importance of food crops viz., cash crops. Cropping pattern is influenced by a host of factors which can be broadly classified into two categories:

 

Ø  Physical Factors: Among physical factors the important ones are soil conditions, extent of rainfall and type of climate. Natural conditions of the country are the most important factors affecting the cropping pattern of a country. Certain kinds of soil and climate are suitable for particular crops, and not so suitable for other crops. As a result only such particular crops are grown in those areas which suit their natural conditions.

 

Ø  Economic Factors: These are related to such things as prices, income, size of land holdings, availability of agricultural resources etc. the prices of agricultural products of inputs and of manufactured goods all have a bearing on the types of crops the farmer will grow and the proportion of land he will devote to different crops etc.

 

Ø  Historic Factors: At any given point of time the cropping pattern of a country is given by history. The early settlement of man on land and the evolution of needs and capacity of population through time have governed the types of crops grown and the lands earmarked for different crops.

 

Ø  Social Factors: It includes the factors such as density of population, customs, traditions, attitude towards material things, willingness and capacity for change, etc, have an important bearing on the types of crops grown and the area devoted to different crops. Before the attaining of independence the peasant in India was tradition bound and fatalistic in outlook.

 

Ø  Government Policy: The policies of the government affect cropping pattern in a very significant way. Policies relating to priorities given to various crops, exports, taxes, supply of credit, development of backward regions etc. determine the nature of crops and the area under them.

 

Trends and Evaluation

 

The agriculture growth has been marked by some healthy features. Unfortunately, however, there have been some ugly marks too. On the whole, the net result has not been very satisfactory. Positive and negative points are discussed as under:

 

Ø  Positive Points: There has been an uptrend in the agricultural production. The output has grown at a compound rate of 2.7 per cent since the beginning of planning in 1951-52. This growth rate is somewhat higher than the population growth. It is however, much higher than the pre-independence growth rate of 0.3 per cent during the 45 years preceding independence (1900-1 to 1945-56). Thus the growth rate is fairly sizeable, although not very high. The output level has also increased much. There is now a little less instability in the agricultural output. Due to improvement in the technique of production there is an increase in productivity. There is modernization of agriculture because of high yielding crops, chemical fertilizers, pesticides etc.

  • Ø Negative Points: However, there are quite a number of unhealthy features that have marred the agricultural scene. The growth rate has been slow and unsteady. The growth rate at 2.7 per cent is due to large growth in certain crops like wheat. Without this the overall growth rate is much less. The weakening of the influence of weather has been insignificant. This is evident from the fact that there is a very little decrease in the variations of output from year to year in respect of the most important crops namely, food grain crops. The output cost of agriculture has been rather high. In comparison with agricultural costs of advanced countries, our costs are high indeed. Lastly, the agricultural growth has been very uneven and inequitable, in respect of crops, regions, states and classes. In case of certain crops, particularly of food grains group, the growth rates have differed vary widely.

 

    From the above it is obvious that there are, no doubt, gains which have marked the production profile of agriculture. But each one of the advances is very little so that the total impact is not of much significance. On the other hand, the negative features are too glaring with growth rate of output low, unsteady and unevenly distributed as among crops, regions and classes. On the whole, therefore, the unsatisfactory trends over shadow the healthy developments.

The above table shows that pattern and land utilization in India since 2000. It is evident from the above table that there is not a particular pattern in the reporting area for land utilization. There is a little bit variation across the number of years from 2000-01 to 2009-10. The area covered by forests has increased over a number of years from 69849 to 70042. There is also an increasing trend in the area which is not under cultivation. Land under miscellaneous tree crops has increased in the first year and starts decreasing from 3453 in 2001-02 to 3364 in 2006-07 and then starts increasing. We see a fluctuating trend for this category. The area under cultivable land has also decreased over a decade and remains 12857 in 2009-10. Current Fallow has a fluctuating trend over this period. Net area sown shows a decreasing trend in the initial years and then starts increasing then decreasing. The total cropped area has also increased in the last ten years.

Gross Capital Formation (GCF) in Agriculture & Allied Sector is shown in the above table at Current Prices. Share of agriculture and allied sector in total GCF has decreased from 6.15 per cent in 1993-94 to 5.70 per cent in 2010-11 in the public sector and from 12.34 in 1993-94 to 8.51 in 2010-11 in the private sector respectively. It was maximum 7.64 per cent towards the public sector in 2005-06 and lowest 5.55 per cent was in 2008-09. If we talk about the private sector then the share of agriculture and allied sector in GCF was highest 14.26 per cent in 2001-02 and lowest 7.52 in 2006-07. If we talk about the overall share then it is highest 12.15 per cent in 2001-02 and lowest was in 7.51 in 2007-08.

 

Gross Capital Formation in Agriculture & Allied Sector 1993-94 to 2012-13 at Constant Prices

The above table depicts the Gross Capital Formation in Agriculture & Allied Sector 1993-94 to 2012-13 at Constant Prices. The table shows that the share has decreased rapidly from 1993-94 to 2012-13. There is continuous declining trend in the share except some of the years from 2004 to 2007 in the public sector. Same is the trend in the private sector also. It decreased from 27.99 per cent to 5.31 per cent over the last twenty years. In the overall share of agriculture and allied sector at constant prices towards gross capital formation we find the decreasing trend.

 

Gross Domestic Product (GDP) from Agriculture and Allied Sector and its Percentage Share to Total GDP (1954-55 to 2014-15)

The above table explains the Gross Domestic Product (GDP) from Agriculture and Allied Sector and its Percentage Share to Total GDP from 1954-55 to 2014-15. Growth rate of GDP agriculture shows a fluctuating trend. In some years it is positive and in other years it is negative.

 

4.   Trends in the Productivity of Land

 

Considering the low growth of agriculture production, and the large needs for fast growing population, expanding industries and exports, there has to be a great emphasis on raising the crop output. The points are discussed as under:

 

Ø  Large Scope for Intensive Cultivation: There are two ways of raising production. One is by expanding the areas under cultivation. Second is by cultivating the land more intensively. Of the two courses, the scope of the former is very limited. No doubt, some additions to the present net sown area at 142 million hectares can be made through reclamation of degraded land, recovery of land under deserts etc, but the resulting increase cannot be very considerable. Moreover, with the passage of time this resource will cease to be of any importance. On the other hand, there will be rise in demand for land for other purposes such as for buildings, roads, rail-tracks etc. In the circumstances the only way is intensive cultivation.

 

Ø  Little Improvement: There is no doubt that some improvement in the productivity of land has taken place. But this is little considering the potential and it is unevenly distributed as between crops and regions. The greater increase in the yield of land after the Green Revolution than before has been of crucial significance for sustaining the higher growth of agricultural production. But for this, agricultural growth at the achieved rate of 2.7 per cent would have been almost impossibility.

  • Ø Unsatisfactory Trends: While there is, no doubt, that the trend is towards an increase in the productivity of land, but this improvement has been a small one and a restricted one. As a result, the performance in this field remains far from satisfactory. In the first place, the yield per hectare, though more than before, continuous to be much lower than what has been achieved elsewhere. This is so even in respect of the crops which have benefited the most from the new technology.
  • Ø Remedial Measures: As emphasis earlier, the increase in the productivity of land is very essential, as there is almost nil possibility of taking in more land for extensive cultivation. There is need for the proper management of land. It includes degraded land needs to be brought back to its normal position with soil nutrients, land should be more scientifically cultivated in terms of preparing the soil, sowing, plant population etc., increase in multiple cropping and changing the cropping patterns.
  1. Summary

Much of the country’s fate is linked with the state of agricultural production. It is because it influences in a substantial manner such vital aspects of the people’s life as food supplies, raw materials, prices, exports, market for non-agricultural goods and most importantly the livelihood of a large majority of Indians. We have discussed the trends in the agricultural production and productivity in this module. The vast scope for raising output from the use of better package of inputs can also be gauged by looking at the difference between what can be achieved and what has been attained in the advanced countries. In wheat, for example, there is still the possibility of raising the yield per hectare by three times. In rice, the yield can be doubled by implementing the modern equipments and high variety of seeds.

Learn More

 

Few important sources to learn more about the Trends in Agriculture Production and

 

Productivity are:

  1. Shaikh Saleem (2009). Business Environment. New Delhi-110017: Pearson Education.
  2. Bagchi Amaresh (2011). Readings in Public Finance. New Delhi-110020. Oxford University Press.
  3. Jha Praveen (2011). Progressive Fiscal Policy in India. New Delhi-110044. SAGE Publications India India Pvt. Ltd.
  4. Kapila Uma (2007). India’s Economic Development Since 1947. New Delhi-110002. Academic Foundations.
  5. Datt & Sundharam (2011). Indian Economy. New Delhi-110055. S. Chand & Company Ltd.
  6. Agrawal A.N. (2007). Indian Economy-Problems of Development and Planning. New Delhi-110002. New Age International (P) Limited.
  7. Paul Justin (2009). Business Environment-Text and Cases. New Delhi-110008. Tata McGraw Hill Education Private Limited.
  8. Agrawal Raj (2006). Business Environment. New Delhi-110028. Excel Books.
  9. Mala P. (2014). Agricultural Economics. New Delhi-110051. Dominant Publishers & Distributors Pvt. Ltd.
  10. Rane, Deorukhkar ( 2007). Economics of Agriculture. New Delhi-110002. Atlantic Publishers & Distributors Pvt. Ltd.
  11. Prasad C.S. (2006). Sixty Years of Indian Agriculture 1947 to 2007. New Delhi-110005. New Century Publications.
  12. www.economicsdiscussion.net/economic-development/…agriculture…
  13. www.unep.org/PDF/OurPlanet/OurPlanet_WorldBank_web_en.pdf
  14. www.jstor.org/stable/1812786

 

Points to Ponder

  • The net area sown under these crops is 142.3 million hectares. This constitutes over 46 per cent of the total geographical area of the country.
  • There has been an uptrend in the agricultural production. The output has grown at a compound rate of 2.7 per cent since the beginning of planning in 1951-52. This growth rate is somewhat higher than the population growth.
  • In the overall share of agriculture and allied sector at constant prices towards gross capital formation we find the decreasing trend.
  • The vast scope for raising output from the use of better package of inputs can also be gauged by looking at the difference between what can be achieved and what has been attained in the advanced countries.