AGRONOMICS

AGRICULTURE ECONOMICS…
INTRODUCTION
What is agriculture Economics?
Agriculture Economics also called ‘Agronomics’ is a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield while maintaining a good soil ecosystem.
But today Agronomics is a broader concept. Along with crop harvesting and commodities produced by farming, Agriculture economics plays a vital role in the economics of development. It includes both science and commerce.
HISTORY OF AGRICULTURE ECONOMICS
Ever since, human civilized Agriculture was a part of their living, as it was the necessity of mankind.
But Agriculture economics came into existence in the late 19th century, combined the theory of the firm with marketing and organizational theory. There isn’t much information about the history of Agronomics but it was in 19th century when agricultural economists were drawn to the development problems of poor countries, to trade and macroeconomics policy and implications of agriculture in rich countries, and to a variety of production, consumption and environmental and research problems.
IMPORTANCE OF AGRICULTURE/WHY AGRIULTURE?
For decades, agriculture has been associated with production of essential cops. At present Agriculture above and beyond farming includes forestry, dairy, fruit cultivation, poultry, bee keeping, etc.
Today processing, marketing and distribution of crops and livestock products etc. are all acknowledged as part of current agriculture. Thus, agriculture could be referred to as the production, processing, promotion and distribution of agriculture production. Agriculture plays a critical role in the entire life of the given economy. Agriculture is the backbone of economic system of a given employment. In addition to providing food and raw material, agriculture has its own importance. Given below are the importances of agriculture.
Source of livelihood:
Agriculture is the main source of people’s livelihood. It is the source of food.
Approximately 70% of the people directly rely on agriculture as a mean of living. This high percentage in agriculture activities is as result of none development of non agriculture activities to absorb the fast growing population. However, most developed countries do not engage in agriculture.
Contribution to National revenue:
Agriculture is the main source of many underdeveloped and developing countries. However, in developed countries the contribution is smaller but it is still effective and important.
Supply of food as well as fodder:
Agriculture sector provides fodder for domestic animals. Cow provides people with milk which is a form of productive food. Moreover, lives stock also meets people’s food requirement.
Significance to the International Trade:
Agricultural products like sugar, tea, rice, spices, tobacco, coffee etc. constitute the major items of exports of countries that rely on agriculture. If there is smooth development practice of agriculture, imports are reduced while export increases considerably. This helps to reduce countries unfavorable balance of payments as well as saving foreign exchange. This amount may be well used to import other essential inputs, machinery, raw-material, and other infrastructure that is helpful for the support of country’s economic development.
Marketable Surplus
The growth of agricultural sector contributes to marketable surplus. Many people engage in manufacturing, mining as well as other non- agricultural sector as the nation develops. All these individuals rely on food production that they might meet from the nation’s marketable surplus.
Source of Raw Material
The main source of raw materials to major industries such as cotton and jute fabric, sugar, tobacco, edible as well as non-edible oils is agriculture. Moreover, many other industries such as processing of fruits as well as vegetables and rice husking get their raw material mainly from agriculture.
Foreign Exchange Resources
The nation’s export trade depends largely on agricultural sector. For example, agricultural commodities such as jute, tobacco, spices, oilseeds, raw cotton, tea as well as coffee accounts for approximately 18 % of the entire value of exports of a country. This demonstrates that agriculture products also continue to be important source of earning a country foreign exchange.
Great Employment Opportunities
Construction of irrigation schemes, drainage system as well as other such activities in the agricultural sector is important as it provides larger employment opportunities. Agriculture sector provides more employment opportunities to the labor force that reduce the high rate of unemployment in developing countries caused by the fast growing population.
Food Security
A stable agricultural sector ensures a nation of food security. The main requirement of any country is food security. Food security prevents malnourishment that has traditionally been believed to be one of the major problems faced by the developing countries. Most countries rely on agricultural products as well as associated industries for their main source of income.
AGRICLTURE IN INDIA
Agriculture, with its allied sectors, is unquestionably the largest livelihood provider in India, more so in the vast rural areas. It also contributes a significant figure to the Gross Domestic Product (GDP).
Today, India ranks second worldwide in farm output. Agriculture and allied sectors like forestry and fisheries accounted for 13.6% of the GDP in 2013, about 50% of the total workforce. 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 India. India's population is growing faster than its ability to produce rice and wheat. Other recent studies claim India can easily feed its growing population, plus produce wheat and rice for global exports, if it can reduce food staple spoilage, improve its infrastructure and raise its farm productivity to those achieved by other developing countries such as Brazil and China.
The Importance of Agriculture by Admin on FEBRUARY 25, 2013 in AGRICULTUREFor decades, agriculture has been associated with production of essential food crops. At present, agriculture above and beyond farming includes forestry, dairy, fruit cultivation, poultry, bee keeping, mushroom, arbitrary, etc. Today, processing, marketing and distribution of crops and livestock products etc. are all acknowledged as part of current agriculture.Thus, agriculture could be referred to as the production, processing, promotion and distribution agricultural products. Agriculture plays a critical role in the entire life of a given economy. Agriculture is the backbone of economic system of a given country. In addition to providing food and raw material, agriculture also provides employment opportunities to very large percentage of population. Below are the importances of agriculture:
Source of Livelihood
The main source livelihood of many people is agriculture. Approximately 70 % of the people directly rely on agriculture as a mean of living. This high percentage in agriculture is as a result of none development of non-agricultural activities to absorb the fast growing population. However, most people in developed countries do not engage in agriculture.
Contribution to National revenue
Agriculture is the main source of national income for most developing countries. However, for the developed countries, agriculture contributes a smaller per cent age to their national income.
Supply of Food as well as Fodder
Agricultural sector provides fodder for domestic animals .Cow provides people with milk which is a form of protective food. Moreover, livestock also meets people’s food requirements.
Significance to the International Trade
Agricultural products like sugar, tea, rice, spices, tobacco, coffee etc. constitute the major items of exports of countries that rely on agriculture. If there is smooth development practice of agriculture, imports are reduced while export increases considerably. This helps to reduce countries unfavorable balance of payments as well as saving foreign exchange. This amount may be well used to import other essential inputs, machinery, raw-material, and other infrastructure that is helpful for the support of country’s economic development.
Marketable Surplus
The growth of agricultural sector contributes to marketable surplus. Many people engage in manufacturing, mining as well as other non- agricultural sector as the nation develops. All these individuals rely on food production that they might meet from the nation’s marketable surplus. As agricultural sector development takes place, production increases and this leads to expansion of marketable surplus. This may be exported to other nations.
Source of Raw Material
The main source of raw materials to major industries such as cotton and jute fabric, sugar, tobacco, edible as well as non-edible oils is agriculture. Moreover, many other industries such as processing of fruits as well as vegetables and rice husking get their raw material mainly from agriculture.
Significance in Transport
Bulks of agricultural products are transported by railways and roadways from farm to factories. Mostly, internal trade is in agricultural products. Moreover, the revenue of the government, to a larger extent, relies on the success of agricultural sector.
Foreign Exchange Resources
The nation’s export trade depends largely on agricultural sector. For example, agricultural commodities such as jute, tobacco, spices, oilseeds, raw cotton, tea as well as coffee accounts for approximately 18 % of the entire value of exports of a country. This demonstrates that agriculture products also continue to be important source of earning a country foreign exchange.
Great Employment Opportunities
Construction of irrigation schemes, drainage system as well as other such activities in the agricultural sector is important as it provides larger employment opportunities. Agriculture sector provides more employment opportunities to the labor force that reduce the high rate of unemployment in developing countries caused by the fast growing population.
Economic Development
Since agriculture employs many people it contributes to economic development. As a result, the national income level as well as people’s standard of living is improved. The fast rate of development in agriculture sector offers progressive outlook as well as increased motivation for development. Hence, it aids to create good atmosphere for overall economic development of a country. Therefore, economic development relies on the agricultural growth rate.
Source of Saving
Development in agriculture may also increase savings. The rich farmers we see today started saving particularly after green revolution. This surplus quantity may be invested further in the agriculture sector to develop the sector.
Food Security
A stable agricultural sector ensures a nation of food security. The main requirement of any country is food security. Food security prevents malnourishment that has traditionally been believed to be one of the major problems faced by the developing countries. Most countries rely on agricultural products as well as associated industries for their main source of income.