Development Agriculture in the Indian Economy - Essay Example

?The Indian Economy Table of Contents The Indian Economy Table of Contents 2 Introduction 3 Thesis ment 3 Critical Analysis 4 Further Developments 7 Conclusion 8 References 9 Introduction Agricultural development accounts for one of main determinants of the growth of the Indian economy. One of the cornerstones in the country’s agricultural development has been the Green Revolution which has been able to transform the country from a food deficient nation to a self sufficient nation (Jain, p.65). The present project brings forth a critical analysis of green revolution in the Indian economy. India was confronted with the worst possible food disasters in 1943 during the British rule. Food production was given a low priority by the British as a consequence of the hysteria which developed during the World War II. The existence of acute food shortage continued even after the British left India. Thus food security became on the issues of paramount importance on India’s agenda. This led to the Green Revolution and the emergence of various other legislative measures for ensuring that the Indian businessmen would never again hoard food for making profits (Teacher web, “Why Green Revolution?”). The period between 1967 and 1978 has been referred to as the period of Green Revolution. This primary aim was the achievement of food self sufficiency. It was a period of successful agricultural experiments in India. Thesis Statement India had famously been known as an agro-based economy which caters to the agricultural needs not only of its own nationals but of foreign nations as well. The climate and other ecological factors in India had been conducive for a variety of agricultural production even though a vulnerable one. During the post independence era, India decided to put a greater emphasis upon its agricultural segment where it had already enjoyed an edge. The sector performed in a commendable way during the first five-year plan phase but gave up to climatic irregularities 1950 onwards. The nation at that time had been in a pitiable state lacking ample food reserves as well as resources to import an abundant supply of the same. Hence, there had been little options left for the national government but to figure a permanent way-out of the same. It decided to modify the agricultural state of the nation through technological enhancements which could sustain not only the nation’s large population base but could also produce enough surpluses for export supplies. This led to a movement called Green Revolution which was characterised by sowing of high yielding variety seeds capable of producing more crops per hectare than could be produced through using conventional seeds. The revolution was successfully initiated in a handful of regions all over India during 1965, following which it had been adapted by farmers across the nation. The primary topic of research in the paper will be to evaluate the effectiveness of measures which had been adapted by the national government to make the revolution a success. With the passage of time, it has been alleged by many that the move has actually lost its significance in the mouth of a large population base and growing consumption demands. Hence, a corollary attempting to examine the claims will also be added to the primary topic. Critical Analysis During the planning period a number of measures were adopted by the Government which resulted in increase in the production of food grains by more than 25%. The dramatic increase was similar to that in a revolution. This is the reason why it has been termed as Green Revolution by the economists. It promoted the use of the high yielding variety of seeds, pesticides, chemical fertilizers and also more irrigation facilities. During the initial stages, wheat production rose significantly while the production of rice improved later in the second stage (Jain, p.65). It was introduced as a packaged program focusing on irrigation, fertilizers, pesticides and high yielding variety of seeds. The experiment of launching HYV seeds was launched in the year 1966, especially for the five crops, namely, rice, wheat, bajra, jowar and maize. These seeds were primarily used in those areas which were under the “Intensive Agricultural District Program” (Jain, p.58). The result of using these seeds was an increase in the yield per hectare. The yield per hectare of wheat increased from 8.5 to 27, while that of maize and bajra rose to 17 and 8 quintals respectively. The Green Revolution was characterized by the use of modern machineries like tractors, harvesters, pumping sets, etc. Increased machinery use made multiple cropping and use of HYV seeds possible. “17 Agro Industrial Corporations” (Jain, p.58) were established in various states in the country. Through these corporations machineries and other equipments were made available to farmers at low prices. Apart from that, “Agro Service Centres” (Jain, p.58) were also established in many places to provide machineries like tractors, etc, to farmers on lease. The period saw an increase in the number of credit facilities that were extended to the farmers. Previously these farmers used to take loans from local money lenders and had to pay extremely high rates of interests. Green revolution aimed to satisfy the credit requirements of the farmers through the credit institutions which lent them credit at low interest rates. The condition improved further with the nationalization of the commercial banks. These commercial banks extended Rs. 183 crore in the form of credit to these farmers. Between the years 2007 and 2008, the Cooperative Banks extended credit to the farmers which amounted to Rs. 52,224 crore. The Regional Rural Banks as well as the Commercial Banks lent huge amounts of money during the same period. The cheap credit eventually helped farmers utilize better quality of seeds, pesticides, fertilizers and other irrigation facilities. The improvement of food grain production can be attributed to the extensive and enhanced use of chemical fertilizers. In 1967 and 1968 11 lakh tones of chemical fertilizers were used. By 2007, the figure had increased to 220.5. The per-hectare use of such fertilizers also increased significantly. During the same period, large amount of areas were extended under irrigation. “In 2006-07, irrigation potential increased to 1,028 lakh hectares” (Jain, p.58). Green Revolution also brought about the possibility of multiple cropping. Through the use of HYV seeds and better irrigation facilities, farmers were able to sow more than one kind of crop in a particular year. Immediately after wheat harvest in April, crops like moong, etc could be sown which takes two months to mature and thereafter crops like sugarcane and rice could also be sown. Multiple cropping evolved as one of the best strategies which resulted in the increase of food production substantially. By 2005, programs of multiple cropping were extended to 60 million hectares of land in India. Green Revolution also gave a lot of marketing facilities to the farmers which they could not access previously. Framers could now avail facilities like warehouses and cold storages. Most importantly large agricultural production under the program of green revolution allowed farmers to give price incentives. Further, the Government also provided protection towards farmers against fall in the agricultural prices, like setting a minimum price. The Government also bought crops at this price. The minimum prices policy actually encouraged farmers to enhance and increase their production. The effect of green revolution can be demonstrated in the figure below. Figure 1: Trends in food production (Lakh Tonnes) (Source: Jain, p.60) Further Developments Green Revolution had attained a high degree of success initially soon after its introduction during 1960s. It had actually played the role of propping up various basic sectors of the economy and hence, in its growth process. Industrialisation is identified as one of the primary needs of an economy to shove it into the path of sustained development; revenues reaped out of enhanced agricultural production had been used up to accomplish the same. Furthermore, the nation also needed to sustain its large population base as well as keep its exchange rate afloat, which is why the Green Revolution had been necessary (Ray, 158). However, the move of 1960s which had been a blessing for the economy started revealing its negative aspects after a few decades of its incorporation. Some such depressing sides which could be doubled up as the reasons behind the need for a second green revolution, have been briefed down as follows – Green revolution popularised the concept of using chemical fertilisers instead of natural organic ones which hampered the fertility of soil. High yielding variety seeds needed a huge volume of water reserves to sustain them and reap crops, which posed problems for farmers located in relatively dry regions of the nation. Thirdly, the revolution had stayed limited within a few agricultural crops, even though they are the staple ones. The measures for advanced agricultural productivity could be introduced only in large agricultural plots which usually are owned by richer farmers. The poorer and subsistence farmers on the other hand, could make little use of the move, which led to inequality in the distribution of wealth (Chand & Puri, 304). Hence, from a fundamental point of view, a second Green Revolution would mean a remedy to the problems arising out of the first. For instance, biological fertilisers and pesticides could be replaced for the chemical ones, measures should be adopted for water conservation, introduce a balanced and a suitable combination of cropping pattern, etc. The idea of a second Green revolution had been first put forward by Indian agro-scientists during 1990s when they found the prevailing one was not based upon environmentally sustainable ones. Then India President, Dr. Kalam suggested the measure to consist of crop management, reduction in cost of operation, value addition of produce and marketing costs as well. In other words, there is need for an advanced method of marketing and distribution of the produce so as to reap the maximum profit out of the same In fact, these proposals had been the founding stone for the national government’s sanctioning of Rs. 50,000 crores in January, 2004 (Singh, 9.19). It had also been proposed to lay a greater emphasis upon the enhanced production of non-food crops in addition to food-grains. Infrastructural development and irrigational facilities in rural regions is also essential to make the program a success. Keeping these very points in mind, the national government has adopted the Rashtriya Krishi Vikas Yojana in 2007 during the 11th five-year plan (Jain, Uppal, Trehan & Trehan, 65). Some of the measures to enhance agricultural production, which have been included in the aforementioned programme, have been briefed underneath. Expanding the number of agricultural plots with irrigational facilities. Conserving water through better management, rain water harvesting and watershed development are also part of the scheme. Retain and revive soil fertility. Impart agricultural knowledge to farmers to hone their skills. Emphasise upon the production of non-food crops without hampering into food grain yields. Promote farming and fishery. Issue agricultural loans at marginal rates of interest to boost agricultural enhancement moves as well as research and development measures. Improving market structure and distributional aspects (Dwivedi, 4.4). Conclusion The concept of second Green revolution is an inviting one in the face of a rising population base in India and hence a rising consumption demand. At the time the program was adopted, the nation had not been liberalised and thus, had followed a modest rate of economic growth. However, post liberalisation during 1990s, the nation’s story of development gained momentum and so did the consumption demand. India today is in a phase of transition and also witnessing the second stage of demographic transition when the birth count per hundred surpasses the death rate resulting to a hike in population. On the other hand, the nation also needs to sustain itself in its current account front in order to maintain its exchange rate position. Hence, it is essential that the nation maintains an agricultural surplus as India had always retained a global position in terms of its agricultural produce. But consumption demand in India is on a rise and will continue to be so till the economy attains development in the true sense of the term. Furthermore, it is also necessary to check environmental degradation which multiplies to the woes of civilisation, especially given that India is the second most populous nation in the world. Hence, the need for a second green revolution could be easily justified. References Chand, M. & Puri, V. K. Regional planning in India. Bombay, India: Allied Publishers, 1983. Dwivedi, R. India 2010. New Delhi, India: Tata McGraw-Hill, 2010. Jain, T. R., Uppal, R., Trehan, M. & Trehan, R. Indian Economy. New Delhi, India: VK Publications, 2009 Ray, S. K. Planning, Growth and the Economy. New Delhi, India: PHI Publications, 2004. Singh, R. Indian Economy for Civil Services Examinations. Teacher Web. Why Green Revolution?. No Date. Green Revolution in India : A Case Study. February 24, 2011. < http://teacherweb.ftl.pinecrest.edu/snyderd/APHG/Unit%205/GreenRev.htm>. Read More