RESEARCH PAPER
Economics
Volume : 4 | Issue : 2 | Feb 2014 | ISSN - 2249-555X
An Economic analysis of Trends in Agriculture Growth and Production in India
KEYWORDS
Ramachandra Murthy K
Research Scholar DOS in Economics and Cooperation, University of Mysore, Mysore
Anand C
Research Scholar, DOS in Economics and Cooperation, University of Mysore, Mysore
Manjuprasad C
Research Scholar, DOS in Economics and Cooperation, University of Mysore, Mysore
ABSTRACT The present paper examines the performance of Trends of Agriculture growth and production in India. And also The paper has shown the growth and production has significantly increased from during the last three decades and also highlight the performance of the Indian
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Rapid adoption of new technologies and improved rural infrastructure induced productivity growth. The government spending on productivity-enhancing investments (especially agricultural research and extension), rural infrastructure (especially roads and education), and rural development targeted directly to the rural poor, all contribute to the growth in agricultural productivity. Avila and Evenson (2004) have utilized FAO published data on cropland, pastureland, labour used in agriculture, fertilizer, seeds, tractors and combine harvesters and animal stocks for measuring the changes in TFP for crop production, livestock production and aggregate agricultural production for two periods, 1961-1980 and 1981-2001. Owing to the limitation of data on factor shares, the TFP growth rates seem to be on a higher side. Modern varieties of the Green Revolution increase in the education level of labour force, and increases in dietary energy have been reported as sources of TFP growth in the paper. Modern varieties contributed maximum (64%) to TFP growth, followed by Schooling (22 %) and nutrition (14 %). Birthal et al. (1999) have analyzed the trend in TFP for the livestock sector in India. The livestock output grew at the rate of 2.6 per cent per year over the period 1950-51 to 1995-96. The input index increased by 1.8 per cent per year and the TFP grew at about 0.8 per cent, implying that technical change contributed about 30 per cent to the overall growth over the past 45
The National Agro-Food policy has incorporated strategies that are in line with the nutritional aspects of the food system. The programs implemented under the policy include increased food production through optimization and sustainable land, development and upgrading agriculture infrastructure and increase the quality and safety of food by expanding the compliance of standard. Efforts have also been taken to strengthen human capital and to ensure sufficient skill labor force in the agricultural sector. This includes the use of modern technology and mechanization to reduce the dependency of manpower. The government also provides sector-based incentives to encourage the private sector to invest in the agriculture and agro-based industry.
India’s economy is the fourth largest GDP in terms of purchasing power parity (Gupta and Gupta, 2008:68).
Indian groups have adopted agriculture. The ability to grow crops has a huge implication for the
South Asia is one of the most densely populated regions of the world, where despite a slow growth, agriculture remains the backbone of rural economy as it employs one half to over 90 percent of the labor force. Both extensive and intensive policy measures for agriculture
2. Farmers in the United States produce more with the same or even fewer resources than 50 years ago. Agricultural sector productivity in the U.S. has been rising at an annual rate of about 2 percent. This rising productivity benefits the entire U.S. economy by releasing resources that can be used to produce other goods and services Americans want. American farmers must look to foreign markets because production and production capacity is increasing faster than domestic demand.
The agriculture industry has been developing for the past 10,000 years, but it could be argued that the biggest advances have come in the past 50 to 60 years. Since 1970, the world population has doubled, yet farming area has stayed the same.
Formerly, the majorly cultivated crop in North Indus and Eastern Indus were wheat and rice respectively (Ladha et al., 2000). The adaptation and expansion of Rice-Wheat farming system occurred in India with the development of short duration varieties of rice and wheat during the Green Revolution (Timsina et al., 2001). The allied farming activity is livestock rearing in IGP. The livestock comprises 10% livelihood of rice-wheat based small farm holders in Indo-Gangetic plain (Erenstein et al., 2007) with an average 3.6 cow/household (Erenstein and Thorpe, 2010, cited in Erenstein 2011) .
Farming has transformed so much over the years. Six thousand years ago, farmers had holding pens and growing fields (Shmaefsky 1). In today's world farming is not that simple. Since farming has transformed, larger operations are taking away a lot of the mom and pop farms, and making them big industrial farms. Another change is the restaurant industry, which grew in the 1950s, causing the need for more crops, but in a shorter amount of time (Shmaefsky 37). Farmers are using Genetically Modified Organisms to farm more and at a quicker rate.
Agriculture has changed dramatically, especially since the end of World War II. Food and fibre productivity rose due to new technologies, mechanization, increased chemical use, specialization and government policies that favoured maximizing production. These changes allowed fewer farmers with reduced labour demands to produce the majority of the food and fibre.
In light of this, I would like to explore research frontiers in the area of the challenges of managing food and farm businesses in a global setting of the 21st Century. In our society beleaguered by agricultural problems that ranges from economic to environmental problems such as weather and global warming, issues concerning trade and management of agricultural enterprises has been the topic of debate for the past decade. Many developing/poor countries who earn their living from agriculture continuously suffer from poverty and hunger as a result of the increasing pressures on the world's resource base. Policymakers are gripped with finding solutions to problems such as structural and technological constraints, inappropriate domestic policies and an unfavourable external economic environment. As a result, the growth of these economies has been slow, undernourishment has been increasing and the marginalization of these countries in the global economy has continued. This trend has created problems for developing countries over the past decade. Economic and financial
Production and Productivity Trends Labor productivity. Up until the 1970s, the Philippines’ agricultural performance, in terms of both agricultural Gross Value Added (GVA) and agricultural exports, compared well with its neighbors and other Asian countries (Figure 3a). But by the 1980s and 1990s, the country had lagged behind most of the countries in the region (Figures 3b and 3c). This came as agricultural output growth had slowed down dramatically through the decades (Figure 4). Moreover, the sector’s growth had been rather erratic in the 1990s, especially with the periodic occurrence of the El Niño phenomenon that had appreciable impact on weather patterns and, consequently, agricultural performance. Table 1 shows the average annual growth in GVA of major agricultural commodities since 1960. What is clear from the table is that growth rates of all commodities, except for livestock and poultry, have been slowing down over time. Furthermore, growth rates have been below the population growth rate, implying that production has not been able to keep up with increasing population. Erratic and decelerating growth over the past two decades is a major concern, as agriculture continues to employ a large
Agriculture has drastically changed over the years. As modernization occurred the ag industry had to adapt. The demand for food grew as the population grew. In order to get more food, crops need to produce good yields and more land has to be farmed. You will later read in this paper about modernization of farm technologies.
It is the leading earning sector in both terms of GDP and govt. revenue. Majority of the people earn their livings from this sector. Due to a number of sectors, most of the labor force are focused on agriculture. The sector has achieved steady increase in food grain production despite the unfavorable weather conditions and economical turmoil’s. One of the most important factors claim behind this increase is due to the efficiency use of improved fertilizers and the establishment of better flood control and irrigations. The development of infrastructures and rural credit networks has contributed to the sectors development. Population pressure continues to place a severe burden on productive capacity, creating food deficit especially of wheat. Foreign assistance and economical imports fill the gap but seasonal hunger remains a problem. Under employment remains a serious problem a growing concern for Bangladesh’s agricultural sectors will be its ability to absorb additional manpower.
Growth in the agricultural sector has been driven by increased production of major food crops such as maize, sorghum and cassava, but the sector’s performance remains below potential. In turn, the services and industrial sectors have shown strong growth. The nascent banking sector and expanding telecommunications sector are key drivers behind services growth, while construction, electricity generation, manufacturing and mining are salient sub-sectors in industrial activity. Looking ahead, the banking and telecommunication sectors will continue to support services growth, while increased electricity generation capacity will benefit the expansion of the manufacturing
Agriculture in India has a significant history. Today, India ranks second worldwide in farm output. Agriculture and allied sectors like forestry andfisheries accounted for 16.6% of the GDP in 2009, about 50% of the total workforce.[1] The economic contribution of agriculture to India's GDP is steadily declining with the country's broad-based economic growth. Still, agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of