india should focus on agriculture
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India's focus going forward: India's focus going forward: Agriculture or Agriculture or
manufacturing and servicesmanufacturing and services
-Sriram Vangara (07927849)-Sriram Vangara (07927849)
-Arijit Majumdar (07927865)-Arijit Majumdar (07927865)
WHY AGRICULTURE?
EMPLOYMENT FOR MASSESEMPLOYMENT FOR MASSES
Employment for massesEmployment for masses
Agriculture currently employs 60% of the Agriculture currently employs 60% of the country's population.country's population.
Natural advantages India possessesNatural advantages India possesses
IndicatoIndicatorr
YearYear IndiaIndia WorldWorld
Agriculture Agriculture Land as % of Land as % of Total Land Total Land
19911991 57.057.0 11.511.5
20012001 57.157.1 11.711.7Agriculture Agriculture PopulationPopulation
as % of Total as % of Total PopulationPopulation
19911991 57.857.8 46.046.0
20012001 53.253.2 42.042.0
FOOD FOOD SECURITYSECURITY
Food securityFood security
Effects of the green revolution are drying Effects of the green revolution are drying outout
The ministry of agriculture estimates that The ministry of agriculture estimates that within next five years, India will be short of within next five years, India will be short of 20 million tonnes wheat, rice and pulses 20 million tonnes wheat, rice and pulses
WheatWheat
- India currently grows 67 kilograms of - India currently grows 67 kilograms of wheat per person annually wheat per person annually
- India’s per capita wheat consumption is - India’s per capita wheat consumption is nudging 73 kg and is on the upswing . nudging 73 kg and is on the upswing .
Food securityFood security Over the period 1990-91 to 2000-01Over the period 1990-91 to 2000-01
- the growth rate of foodgrain production dropped - the growth rate of foodgrain production dropped to 1.66 per cent per annum(from 2.5 percent)to 1.66 per cent per annum(from 2.5 percent)
- population growth rate over the same period - - population growth rate over the same period - 1.9 per cent1.9 per cent
Food securityFood security
104105106107108109110111112113
2003-04
2004-05
2005-06
2006-07
Population
190
195
200
205
210
215
2003-04
2004-05
2005-06
2006-07
Foodgrainsproduction
INFLATIONINFLATION
InflationInflation
Foodgrains’ price is one of the major Foodgrains’ price is one of the major contributor to Inflation ,along with oil contributor to Inflation ,along with oil in the Indian economyin the Indian economy
Inflation due to foodgrains’ price hits Inflation due to foodgrains’ price hits poor the mostpoor the most
Often Inflation due to increase in Often Inflation due to increase in food prices have caused electoral food prices have caused electoral losses to the ruling party.losses to the ruling party.
InflationInflationYears of poor rainfall and effect on InflationYears of poor rainfall and effect on Inflation
Years of Years of poor poor rainfallrainfall
Rainfall % Rainfall % departure departure from from normalnormal
% change % change foodgrain foodgrain productioproductionn
Avg Avg inflationinflation
1972-731972-73 -24-24 -7.7-7.7 10.010.0
1974-751974-75 -12-12 -4.6-4.6 25.225.2
1979-801979-80 -19-19 -16.8-16.8 17.117.1
1982-831982-83 -14-14 -2.8-2.8 4.94.9
1986-871986-87 -13-13 -4.7-4.7 5.85.8
1987-881987-88 -19-19 -2.1-2.1 8.28.2
2002-032002-03 -19-19 2.62.6
Food and general inflationFood and general inflation
On a whole price inflation has been On a whole price inflation has been more marked for food items than for more marked for food items than for all commodities all commodities
RAW MATERIALRAW MATERIAL
Raw material Raw material Sugar industrySugar industry Vegetable OilsVegetable Oils TextilesTextiles Medicinal plantsMedicinal plants Biofuel industryBiofuel industry Fruit and vegetable pulpFruit and vegetable pulp
Besides industries like fertilizers ,herbicides,Besides industries like fertilizers ,herbicides,Insecticides, tractors depend totally on Insecticides, tractors depend totally on
agriculture for their sustenance.agriculture for their sustenance.
CONSUMPTION POWERCONSUMPTION POWER
Reasons at a glance …Reasons at a glance …
Provides employment to 3/5Provides employment to 3/5thth of the of the populationpopulation
food securityfood security inflationinflation raw material to industriesraw material to industries security net in rural areassecurity net in rural areas population pressure-food + population pressure-food +
employmentemployment purchasing powerpurchasing power
Major problems faced by Indian Major problems faced by Indian agricultureagriculture
Low productivity Low productivity IrrigationIrrigation Lack of storage facilitiesLack of storage facilities TransportationTransportation Water supply Water supply Decreasing farm sizesDecreasing farm sizes
Low productivity-Rice,Wheat and Low productivity-Rice,Wheat and Maize(2002)Maize(2002)
CountryCountry YieldYield
IndiaIndia 29152915
EgyptEgypt 91359135
USAUSA 73727372
JapanJapan 65826582
BangladeBangladeshsh
34483448
MyanmarMyanmar 35323532
WorldWorld 39163916
CountryCountry YieldYield
IndiaIndia 27702770
U.KU.K 80438043
FranceFrance 74497449
ChinaChina 38853885
BangladesBangladeshh
21642164
PakistanPakistan 22622262
WorldWorld 27202720
CountryCountry YieldYield
IndiaIndia 17051705
ItalyItaly 95609560
FranceFrance 88138813
EgyptEgypt 77897789
ChinaChina 50225022
PakistanPakistan 17691769
WorldWorld 43434343
RICE WHEAT MAIZE
Low productivity causesLow productivity causes
Low quality of seedsLow quality of seeds Low level of mechanisationLow level of mechanisation Inefficient plant protection measuresInefficient plant protection measures Huge post harvest lossesHuge post harvest losses Poor irrigation facilitiesPoor irrigation facilities
Post Harvest issuesPost Harvest issues a 20 % reduction in transportation costs a 20 % reduction in transportation costs
will reduce final prices by as much as 10 will reduce final prices by as much as 10 pppp
without more efficient logistics, increasing without more efficient logistics, increasing production — through subsidised credit, production — through subsidised credit, power and fertilisers — can lead to gluts power and fertilisers — can lead to gluts that hurt rather than help farmers. that hurt rather than help farmers.
30% of the fruits and vegetables wasted 30% of the fruits and vegetables wasted due to cold storage problem (due to cold storage problem (40 million 40 million tons amounting to US$ 13 billiontons amounting to US$ 13 billion).).
IrrigationIrrigation
Vicious cycle in irrigationVicious cycle in irrigation
Problems in irrigation sectorProblems in irrigation sector
Competition from households and Competition from households and industriesindustries
Canal irrigation systems - stagnating Canal irrigation systems - stagnating or declining from mid-1980sor declining from mid-1980s
Ground water-Rapid depletion, Ground water-Rapid depletion, salinization and pollution related salinization and pollution related problems. problems.
Decreasing farm sizesDecreasing farm sizes
Land sizeLand size Proportion of Proportion of farmersfarmers
Near landless (0-0.099 Near landless (0-0.099 ha)ha)
9.99.9
Marginal(0.1-1 ha)Marginal(0.1-1 ha) 55.655.6
Small(1.001-2 ha)Small(1.001-2 ha) 18.118.1
Semi-medium(2.001-4 Semi-medium(2.001-4 ha)ha)
10.610.6
Medium(4.001-10 ha)Medium(4.001-10 ha) 4.84.8
Large(> 10 ha)Large(> 10 ha) 0.90.9
growth originating in agriculture is at growth originating in agriculture is at least twiceleast twice as effective in reducing as effective in reducing poverty as GDP growth originating poverty as GDP growth originating outside agricultureoutside agriculture
World Development ReportWorld Development Report
20082008
AREAS TO INVESTAREAS TO INVEST
Areas to invest (cont)Areas to invest (cont)
AGRICULTURE IS THE SOLUTIONAGRICULTURE IS THE SOLUTION
THANK YOU !THANK YOU !