AGRICULTURE GROWTH

IN INDIA SINCE 1991

Pulapre Balakrishnan, Ramesh Golait,
Pankaj Kumar
THANK YOU
KRENZA D’SILVA
GEETESH THAKUR
RONAK SHAH
HIMANSHU SHAH
VISHWANATH KUTASKAR
RUSHIL THAKER
AGRICULTURE AND ECONOMIC
REFORMS
CONCLUSION
 AGRICULTURE GROWTH
 PRE GREEN REVOLUTION: 1949-50 TO 1964-
65
 AFTER IMPLEMENTATION OF GREEN
REVOLUTION: 1ST PHASE: 1967-68 TO 2002-
03, 2ND PHASE: 1991-92 TO 2006-07
 FACTORS DETERMINING
AGRICULTURAL GROWTH SINCE 1991
 PRICE FACTORS:
 Role of import liberalisation
 NON PRICE FACTORS:
 Shrinking farm size
 Capital formation
 Knowledge base
 Credit
 PRICE FACTORS

 Relative Price Movements

- After mid 90’s the terms of trade were against
agriculture
- But the input-output ratio shows an
increasing trend
 Cont…
 Role of import liberalization
- Globalization
- India’s accession to the WTO norms affects
the domestic production
- Imports enhanced the supply of food which
resulted in low prices of food

 Real and Relative Prices

 Cont…
 Import Penetration
- Import production ratio shows that the price
volatility in India is lower than the global
market
- Divergence between food and non-food crops
 NON PRICE FACTORS
 Shrinking of farm size
- The operational land holdings and its
distribution has increased over the years
- Majority of the land belongs to marginal
farmers
- 69.8% of the farmers are marginal farmers
- Problems with fragmented land
- Technology
- Ecological stress
 Cont…
 Capital Formation
- Private sector
- Public sector
- The rate of growth affected in the whole 90’s
period due to less capital formation in agriculture
- Importance of irrigation
- Very low level of irrigated area in India by
International standards
- Slow expansion of irrigation is a cause of
concern
 Cont…
 Knowledge-base
- Importance of research and extension
- Future growth must come through productivity increase
- In 1960’s, growth acceleration was through high yielding
variety of seeds
- Production conditions situations is vastly different today
- Public expenditure on R&E stands well below 1% of
GDP in agriculture compared to other developed
countries
- But now need for knowledge-based inputs
 Cont…
 Credit
- Timely supply of institutional credit to
agriculture is most important
- Trends
- Nationalisation of banks
- Post-independence decline in role of non-
institutional sources
- Decline in share of co-operative banks and
increase in share of commercial banks
 Cont…
Issues and Concerns:
- Inadequacy of financial resources
- No long-term capital formation
- Factors affecting investment credits
- Credit lending to marginal farmers and not
large farmers
Reasons behind farmers committing suicide:
 Conclusion
 Price shifts is too mild to account for the
slowdown of agricultural progress
 Hardening of production conditions