Swot Analysis of Indian Agriculture

SWOT Analysis of Indian Agriculture Prof. DR. Sanjay B. Kadu, Vidya Bharti Mahavidyalaya, Camp, Amravati. [e-mail] [e-mail] Mobile : [phone] ____________________________________________________________________________________________ India is an agricultural country; one third population depends on agriculture sector directly or indirectly. Agriculture continues to be the mainstays of the Indian economy. Hence, adequate production and even distribution of food has lately become a high priority global concern. With the changing agricultural scenario and global competition, there is a need of exploiting the available resources at maximum level. In the view of changing agriculture scenario and global competition, we must be study of Indian Agriculture as per following-
Weakness of Indian Agriculture The development of new and improved varieties of plants and availability of such varieties to Indian farmers is of crucial importance for a sustained increase in agricultural productivity. India’s recent growth has had a strong urban bias: while the services sector is booming, agricultural productivity has declined. This has adversely affected India’s poor, most of who depend on agriculture for their livelihoods.

The use of inputs such as fertilizers, other agrochemicals, improved seed varieties and irrigation appears to have had a limited impact on agricultural growth. Diffusion of fertilizer consumption in Indian agriculture has been quite widespread. The imbalances in the use of N, P and K have become highly conspicuous.

Agriculture contributes only 17.8% of India’s GDP. India occupies the top slot in dairy and fruits production while also occupying the first or second position in the world in several crops in terms of area and production. But their term of productivity of some crops is not only low but they also remained stagnant over the years. The position of India is miserable.

India is yet to take a firm ground primarily due to its unique pattern of land holdings, poor infrastructure, lack of farmers’ inclination to take risk, socio-economic and demographic conditions. Fragmented land holding in India is a measure challenge as the majority of the farmers in India are Small and Marginal farmers.

Financial institutions are not able to provide hassle free and timely delivery to farmers. 50% of farming community availing credit facilities from private money lenders on higher interest rate which results into rural indebtedness.

In the US subsidy to 900,000 farmers has increased by 700 times since 1996. From 1998 to 2000, the US provided an additional 26 billion dollars to its farmers. But in India, we are told that our 'aggregate measure of support ' (AMS), a measure of subsidies that are provided to agriculture; is negative and we can still raise our subsidies to the farmers. But in reality, India is committed to doing away with agricultural subsidies under the 'structural adjustment programme ' of the World Bank and the IMF. India provides only one billion dollar worth of indirect subsidies to its 560 million farmers.

The agricultural research and extension systems need to be strengthened to improve access to productivity enhancing technologies.

Inadequate Irrigation facility for agriculture sector.

Strength of Indian Agriculture :

World Bank assistance to enhance agricultural productivity:

The Government of India is placing a high priority on raising agricultural productivity to achieve agricultural growth and reduce rural poverty.

On July 24, 2006, the World Bank launched the US$200 million National Agricultural Innovation Project to increase agricultural productivity in the country by accelerating collaboration among public research organizations, farmers, the private sector and stakeholders in using agricultural innovations.

In Indian agriculture, rural women play a vital role and participate in all stages of crop production, as they constitute 50% of rural labour force. They contribute in agricultural operations like, transplanting, manureing and fertilizing, harvesting, threshing, winnowing, drying and carrying the product.

Target foreign buyers of high-value ethnic Indian foods, as opposed to commodity exports-starting with the large NRI population of 20 million, which can be a huge market.

In India, the farming practices are too haphazard and non-scientific and hence need some forethought before implementing any new technology.

Opportunities of Indian Agriculture : The role of agricultural R&D is critical to enhance agricultural productivity. On July 24, 2006, the World Bank launched a US$200 million National Agricultural Innovation Project to help increase agricultural productivity in the country.

In the new millennium, the challenges in Indian agricultural sector are quite different from those met in the previous decades. The enormous pressure to produce more food from less land with shrinking natural resources is a tough task for the farmers.

The farm credit system in Indian agriculture, Credit for Indian agriculture has to expand at a faster rate than before because of the need to step-up agricultural growth to generate surplus for exports, and also because of change in the product mix towards animal husbandry, aquaculture, fish farming, horticulture and floriculture, medicinal plants.

Indian agriculture, multiplication, distribution and availability of good quality seed is crucial to accelerated food production.

Entry of MNCs in seed production and distribution and consequent effects of patenting under the WTO regime, providing quality seeds to farmer at an affordable cost will be a measure challenge in future. Globalization and economic liberalization have opened up new opportunities as well as challenges. The main objectives of the National Seeds Policy, therefore, are the provision of an appropriate climate for the seed industry to utilize available and prospective opportunities, safeguarding of the interests of Indian farmers and the conservation of agro-biodiversity.

Indian agriculture is not cost-effective to meet the growing challenges and opportunities arising out of WTO agreements and the consequent globalization impacts.

· Improved rural infrastructure is also playing a key role behind the agri sector 's comeback trail. With better rural infrastructure, is comparatively easier and costeffective to bring farm produce to the market.

Threats for Indian Agriculture : To better exploit the emerging opportunities, there is need for changing property rights in favour of women, evolving technologies to suit women farmers, increasing the number of women extension workers, educating and training women farmers.

Increase in multi-sectoral competition for water highlights the need to formulate water policies and modernizing Irrigation and Drainage Departments.

With limited scope to expand the area under cultivation, the role of agricultural R&D is critical to enhance agricultural productivity. Indian agriculture will have to shift from resource and input based growth to knowledge and science based growth triggered by innovations and the application of science to agriculture.

If India 's agricultural productivity needs to be enhanced, policy-making must explore past policies like removing the ceiling on agricultural interest rates, reducing the excise duty on pesticides and giving benefits to the private sector and encourage them to invest in irrigation, water harvesting and management , storage, transportation, etc. These investments should be exempted from tax on profits which is similar to the investments in infrastructure. The yield gap in agriculture can be best bridged through an integrated package of technology, need based agriculture bankable schemes and agricultural policies to reach the untouched production potential, particularly, in rain-fed and other low productivity areas. A great deal still remains to raise Indian agriculture to global standards of productivity.

Measures to boost Agriculture Productivity

1. The rural finance would require improving the performance of regional rural banks and rural credit cooperatives.

2. Give States an incentive to amend the APMC act and abolish mandi taxes.

3. Support the organised private sector in increasing its spending on extension and technology transfer.

4. Create a viable model of public-private partnership that allows private investors to invest in agriculture infrastructure in partnership with banks and financial institutions.

5. Regular interaction amongst the Private and Public Researchers, Seed Companies/Organisations and Development Agencies will be fostered to develop and promote growth of a healthy seed industry in the country.

References :

http://www.indiaagronet.com/indiaagronet/Indian%20Agriculture/mainagri.htm

http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDI AEXTN/0,,contentMDK:21019792~pagePK:141137~piPK:141127~theSitePK:295584,00.html

http://agro.indiamart.com/national-seeds-policy/nsp-aims-objective.html

http://agro.indiamart.com/national-seeds-policy/varietal-development.html

References: : http://www.indiaagronet.com/indiaagronet/Indian%20Agriculture/mainagri.htm http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDI AEXTN/0,,contentMDK:21019792~pagePK:141137~piPK:141127~theSitePK:295584,00.html http://agro.indiamart.com/national-seeds-policy/nsp-aims-objective.html http://agro.indiamart.com/national-seeds-policy/varietal-development.html