agricultural development opportunities and challenges

8/7/2019 Agricultural Development Opportunities and Challenges

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AGRICULTURAL DEVELOPMENTOPPORTUNITIES AND

CHALLENGES


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Agriculture Production

Green Revolution has achieved 3.8% annual growthrate in agriculture during 1980.

Growth rate was slow 2.7%in the 1990s which was

associated with a reduction in public investment inagriculture, slower growth and imbalanced use offertilizer and depletion of soil fertility.

The planning commission has set a target of 4% per

annum for agriculture sector which has been ratheran elusive goal so far. For maintaining self sufficiencyin food grains production, the country needs toproduce at least another 20 Mt of additional foodgrains


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Agriculture Issues and

Challenges Land related issues

Technology related issues

Investment and capital formation inagriculture.

Food and Nutrition security

Sustainability of production system

Climate changes

Post harvest management and value addition

Marketing and management system.


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Land Issues

Increase in number of marginal and small

land holdings farmers is another major

challenges issues in agriculture productivitythrough investment of modern technologies.


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Technology related Issues

Second green revolution has to be taken place fromthe rain fed area,

More attention should be done on the less favored

area for setting priorities for strategic policy andpublic investment for poverty reduction.

Shift from the near exclusive reliance on irrigationand irrigated agriculture to strategy of emphasingimproving on the performance of irrigation and

irrigated agriculture. Productivity of irrigation is more important to

determine through agricultural growth than itsexpansion


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Investment and capital

formation in agriculture Acceleration of growth of this sector will not

only push the overall GDP growth upward but

make the growth more inclusive. Inadequate access to credit often push the

farmer to put their hand in front of money

lenders who charges exorbitant rates.

The cooperative credit system needs to be

revitalized.


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Food and Nutrition Security

Demand for food grains comprises of two parts.

First is direct food demand, demand is influenced bytrends in population growth, per capita income and

change in food taste and preferences due tourbanization and other demographic changes.

Second component is other demand mainly for feed,seed and industrial and other uses.

The planning commission maintain a projected

demand of 247 Mt in 2020.129 Mt is for rice,92 Mt isfor coarse cereals and 20 Mt for pulses.

Food grain production should increase about 2 MTevery year which is a reasonable target.


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Continued

A part of huge production of food grains half of thepopulation still suffers from chronic under nutrition.

Most vulnerable sections of the society are childrenand women especially among the lower incomegroups which have unacceptable level ofmalnutrition among children and women which cannot simply be addressed by increase in foodproduction.

A long term solution is only can be ensure byemployment opportunities which can increase thepurchasing power of the poor to meet theirnutrional requirement


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Sustainability of production

System Due to water pollution and poor soil health are

other negative environmental externalities dueto imbalance use of chemicals fertilizers and

pesticides. Thats their developed sustainable agriculture

which will restore health of natural resources,quality of products and environmental services.

Agriculture diversification use of biologicalinputs like biofertilizers and biopesticides andresources conservation technologies hold greatpotentials to promote sustainability ofproduction.


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Sustainable Agriculture

It integrates three main goalsenviroment,health,economics profitability andsocial and economic equity.

Sustainability rest on the principal we must meetthe needs of the present with out compromisingthe ability of the future generation to meet theirown needs.

Reaching towards the goal of sustainableagriculture is the responsibility of all participantin the system includingfarmers,labourer,policymaker,reseachers.


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Climate Changes

Threats of climate change is a real challenges

for the future generations.

Global warming

Rainfed areas should promoted through

application of technology, inputs and

investments in order to convert these greyareas into green.


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Post Harvest Management and

value Addition Reduction in post harvest losses require

more investment in market infrastructure like

cold chains,grading and storage and handlingfacilities in market and retail chain.

Vertical coordination of production and

processing through institutional like contract

farming which benefits both producers andindustry.

Private players plays an important role.


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Marketing and management System

Agriculture marketing is growing rapidly bothterms of volume traded and natures variety offunction.

Improved farmers backward and forwardlinkages with markets. Unorganized sector don't encourage private

player or sector to invest in the marketinginfrastructure in the country.

Farmer don't have direct excess with marketingchannel to the consumer which increase share inrupee paid by consumer.


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Continued

Lack of rural infrastructure has hampered thedevelopment of supply chain and loss of food grains,fruits and vegetables due poor handling.(cleaningsorting grading and packaging) at the farm andvillage level is very high.

Capital is lost annually in the marketing chain due topoor developed market infrastructure excesscontrols.

Efficiency of government interventions, privateinvestment in market infrastructure ,flow of marketinformation to farmers and increasing marketefficiency can improve the agriculture marketing ofour country.


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Measures needed area

Enhancing agricultural productivity, competitiveness and ruralgrowth.

Shift in public expenditures away from subsidies towardsproductivity enhancing investments.

Removing the restrictions on domestic private trade to improve theinvestment climate and meet expanding market opportunities.

Agricultural research and extension systems needed to improveaccess productivity enhancing technologies.

Strengthening rural nonfarm sector growth-Rising income open newopportunities for agriculture diversification to higher valueproduct(livestock-horticulture),agro processing and relatedservice.

Improving access to credit and infrastructure (e.g.roads,electricity,market)


16/20

Continued

Improving access to assets and sustainable naturalresources use balancing poverty reduction andconservation priorities.

Win and win combination for conservation and povertyreduction will be critical to sustainable naturalresources.

Improving access to rural finance-Require to improve

regional rural banks and rural credit cooperatives byenhancing regulatory government control andstrengthening the legal frame work for loan recoveryby using land as collateral. Development ofmicrofinance institutions in rural areas.


17/20

Continued

Strengthening institutions for the poor and

promoting rural livelihood.

State Government efforts in scaling uplivelihood and community to build socialcapital


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Opportunities and policy

Initiatives Large ranges of area like watershed, rural

roads, rural electrification, large irrigationschemes, breakthrough agricultural research,large scale extension and setting up of ruralmarket infrastructure which will continue toremain the domain of the governmentincentives.

Private sector investments which will becritical and inclusive for the growth ofsustainable high value agriculture.


19/20

Continued

Adding value through processing and reaching out to globalconsumers with IndianAgri & food products.

Improving convenience and choice to the consumer throughmodern retail for both fresh and processed food.

Investing in cold chain and supply chain management along theentire agricultural value chain to increase efficiency.

Bringing superior input along with information and knowledgeservices to the farmers doorstep by leveraging thedevelopments in information & communication technology.

Superior risk management solution, especially through weatherinsurance, commodity derivatives markets and contractsfarming.

Also the private sector can help to meet and develop the supplyside of theAgri value chain.


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Thank You

agricultural development opportunities and challenges

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