Monday, May 21, 2012

Reason for Failure of Indian Agriculture?

India food bowl of the world.India has accounted largest agriculture nation in the world.The worst fact is that India can't feed its own 1.21 billion people.The fact doesn't stop here about last 10 years well over 2,00,000 farmers suicide,loss labor force,low production,share in GDP reduction etc.We need to find a solution to solve this problem otherwise future of Indian food print will become so weak.Some of the reason why farmers find's difficult to earn from most essential thing for survival.

1)Dependency on Monsoon

Indian agriculture is always at mercy of good monsoon.Government doesn't have great forecast approach to plan for bad monsoon season.No proper irrigation system and even poor maintenance of existing irrigation system.Government intention on power,road etc or not on irrigation system.
2) Liberal import of agricultural products

The recent globalization has relaxed the import policies of the government which has resulted in liberal import. Though it has reduced prices in the market, it has affected farmers as their products have become unprofitable. They were not given any protection and they had to stop production partly or fully. The government which had to give higher price for importing did not come forward to protect the farmers in reality.
3) Cutback in agriculture subsidies

The government reduced different types of subsidies due to the fluctuations in the market. According to Ram Chand, an economist, cutback in subsidy and control of fertilizers has adversely affected Indian agriculture. It increased the input cost and made agriculture less profitable. The central government budget keeps total silence about subsidy apparently since it goes against the regulations of World Trade Organization.
4) Lack of easy financial assistance to agriculture

Recently the lending pattern of Indian banks has drastically changed and as a result loans were not easily available for farmers. Another drawback was that the interest for the loan amount was not easily affordable. This has forced the farmers to rely on money lenders throwing their condition from the frying pan into fire. Consequently the expenditure on agriculture was pushed up beyond the bearing capacity of the farmers.
5) Decline in the Government investment in agricultural sector

After globalization, the government expenditure and investment in agriculture has been drastically decreased because of its policy of minimum intervention. The expenditure of the government in rural development including agriculture, irrigation, flood control, village industry, energy and transport declined from an average of 14.5% to 6%. The rate of capital formation of agriculture came down, and the agricultural growth also was much reduced affecting the lives of farmers very much.
6) Low support price for farm products

The farmers were affected from both sides, from the government side and from the market side. They were no getting remunerative price for their products. No effort was made for price stabilization.
7) Lack of food security

The public distributing system in the country is very poor aiming only at the vote bank. The poor security of food products has a very negative impact on agricultural market. India has starving. Yet food stocks are rotting in open storage places. Greedy middlemen are exploiting the situation. Hunger and malnutrition are forcing the poor Indians to despair and death. 

The situation of the Indian farmers is a call to the world at large to reconsider the effects of globalization. It is a call to the global family to come forward to a collective effort to come out of selfishness.

Source For Article:Internet source,newspaper,government reports and bablu taught's.


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