Indian Agricultural: Growth, Generation, Policy & Problem Indian Agricultural | Page 59

Pg.no. 58
The low productivity in India is a result of the following factors:
•
The average size of land holdings is very small (less than 2 hectares) and is subject to
fragmentation due to land ceiling acts, and in some cases, family disputes. Such small
holdings are often over-manned, resulting in disguised unemployment and low productivity of
labour. Some reports claim smallholder farming may not because of poor productivity, since
the productivity is higher in China and many developing economies even though China
smallholder farmers constitute over 97% of its farming population. A Chinese smallholder
farmer is able to rent his land to larger farmers, China's organized retail and extensive
Chinese highways are able to provide the incentive and infrastructure necessary to its farmers
for sharp increases in farm productivity.
•
Adoption of modern agricultural practices and use of technology is inadequate, hampered by
ignorance of such practices, high costs and impracticality in the case of small land holdings.
•
According to the World Bank, Indian branch's Priorities for Agriculture and Rural
Development, India's large agricultural subsidies are hampering productivity-enhancing
investment. Overregulation of agriculture has increased costs, price risks and uncertainty.
Government intervenes in labour, land, and credit markets. India has inadequate
infrastructure and services. The World Bank also says that the allocation of water is
inefficient, unsustainable and inequitable. The irrigation infrastructure is deteriorating. The
overuse of water is being covered by over-pumping aquifers but, as these are falling by one
foot of groundwater each year, this is a limited resource. The Intergovernmental Panel on
Climate Change released a report that food security may be a big problem in the region post
2030.
•
Illiteracy, general socio-economic backwardness, slow progress in implementing land reforms
and inadequate or inefficient finance and marketing services for farm produce.
•
Inconsistent government policy. Agricultural subsidies and taxes are often changed without
notice for short term political ends.
•
Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of the land was
irrigated in 2003–04, which result in farmers still being dependent on rainfall, specifically the
monsoon season. A good monsoon results in a robust growth for the economy, while a poor
monsoon leads to a sluggish growth. Farm credit is regulated by NABARD, which is the
statutory apex agent for rural development in the subcontinent. At the same time, over-
pumping made possible by subsidized electric power is leading to an alarming drop in aquifer
levels.
•
A third of all food that is produced rots due to inefficient supply chains and the use of the
"Walmart model" to improve efficiency is blocked by laws against foreign investment in the
retail sector.
Farmer suicides
Ramesh Kumar P