The Hindu Business Line : Farm realities

India is an agrarian economy. Agriculture is the country’s largest private sector activity. Close to 60 per cent of the population (nearly 60 crore people) depend on agriculture and related activities for their livelihood.

The country is blessed with several natural endowments including varied agro-climatic conditions. From the snow-clad Himalayas in the north to the sun-soaked southern tip, and from the arid lands of the west to the hilly terrain of the east, India has varied seasons, soil conditions, temperatures and rainfall pattern.

To over 6,000 km of coast in the peninsular region, there is a vast hinterland (Indo-Gangetic Plains). The country enjoys an average rainfall of 880 mm a year (with regional variations) and sunshine for over 250 days a year. A large population (now 110 crores and growing at 1.8 per cent a year) provides the requisite labour force. With all the natural endowments or factors of production — land, labour, water and sunshine and, importantly, biodiversity — the country ought to be a force to reckon with in global agriculture; but in reality it is not. At over 600 million tonnes, India is the world’s third largest producer of food. Yet, the actual output is far below the potential.

Already, the per capita availability is rather low; and there is now creeping fear of a decline. Agricultural growth has stagnated for long. For the last ten years, (representing the Ninth and Tenth Plan periods (1997-2002 and 2002-2007) farm growth averaged a modest 2.3 per cent per annum. Meanwhile, demand has been rising relentlessly, driven by rising incomes and demographic pressure.

The country’s agricultural economy faces a series of internal and external challenges. As it employs people in large numbers, farming ensures growth with equity. So, it may not be an exaggeration to state that if agriculture survives, India survives.

An occasional importer

With sharp upswing in the industry and services sectors in recent years, the share of agriculture in total GDP has been falling and currently stands at about 18 per cent.

A look at certain distinctions that the country enjoys. For instance, India is the world’s largest producer of milk (100 million tonnes in 2007); second largest producer of rice (88-90 mt) and wheat (70-72 mt) after China; second largest producer of sugar (20-25 mt) after Brazil; and third largest producer of cotton (27 million bales) after China and the US. India is also a large producer of horticulture crops such as fruits and vegetables; plantation crops such as tea and coffee; a wide variety of spices (black pepper, chillies, turmeric, seed-spices), tobacco, and so on.

Also, India is the world’s second largest importer of vegetable oils, and the largest producer, consumer and importer of pulses. In the last three-four years, from the status of an exporter, India has turned into an occasional importer of sugar and wheat.

Production and Markets

The gross area under various crops is about 165 million hectares. Approximately, 40 per cent of cultivated area is irrigated. As 60 per cent of land is under rainfed cultivation, the quantum and distribution of rainfall determines the size of the harvest.

There are two seasons in which planting and harvesting take place. Kharif season is when planting takes place in May/June/July and harvest in September/October.

Major kharif crops are rice (paddy), coarse cereals, pulses, oilseeds (mainly groundnut, soyabean), sugarcane, cotton and jute/mesta. For the rabi season, planting takes place in October/November and harvest in March/April/May. Major crops of the season are wheat, rice, pulses and oilseeds (rapeseed/mustard, groundnut).

Some of the salient features of Indian agriculture include fragmented landholding; rainfed cultivation (irrigated farming is about 40 per cent); low level of input usage (seeds, fertilisers, farm credit); antiquated agronomic practices; poor pre-and post-harvest technology adoption; inadequate marketing infrastructure; low yields and often, unrealistic prices; and tardy flow of price and market information to primary producers.

(To be continued)

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