Introduction

Agriculture is an important sector of Indian economy accounting for 14% of the Nation’s Gross
Domestic Product (GDP), about 11% of its Exports; about half of the population still relies on agriculture
as its principal source of income. Importance of agriculture to Indian economy is that it provides
livelihood to nearly 55% of the population. So, it may not be an exaggeration to state that if agriculture
survives, India survives.

Though its contribution to the overall Gross Domestic Product(GDP) of the country has fallen from about
30% in 1990-91 to less than 15% in 2011-12, agriculture yet forms the backbone of development.
Agriculture is a source of both livelihood and food security for a vast majority of people. It also forms the
resource base for a number of agro based industries and Agro services. Achieving 8-9% of growth in
overall GDP may not deliver much in terms of poverty reduction unless agricultural growth accelerates.

All these factors points to just one thing: that agriculture has to be kept at the centre of any Reform
agenda of planning process, in order to make a significant Dent on poverty and malnutrition, and to
ensure long-term food security for the people (State of Indian Agriculture 2012-13 Ministry of
agriculture, Govt. of India)

Crisis

-The Indian agriculture is in a state of crisis and over the years has become an unviable activity. Recent
survey undertaken by the centre for the study of developing societies suggest that 76% of farmers want
to give up farming.

-While agriculture’s share in GDP is 25%, 58% of the population still depends on agriculture. Agriculture
recorded the lowest growth rate of 1.86 % per annum during the last decade (1995-96 to 2003-04).

- Inadequate irrigation facilities, lack of access to technology to improve efficiency in agricultural

practices, poor road condition, less supply of electricity, etc are key issues that are holding back the
sector.

-The country spends only 0.3 % of its agricultural GDP in research and development. There is no
incentivized Framework for sustainable water management and irrigation facilities.The farmers only
remain at the mercy of good monsoon for better yields.

-While Green Revolution States such as Punjab and Haryana have a much better holding size of more
than four hectares, regions with dry land and having poor reception of monsoons find it very difficult to
better their produce.

Dimension of crisis

Srijit Mishra and D.Narasimha Reddy have stressed that agriculture needs to be seen in a larger context
where not only production but also produces are equally important.
There are two dimensions to the current crisis in Indian agriculture- the agricultural and the agrarian.
The former is a developmental crisis that lies in the neglect of the sector. The latter is a livelihood crisis
threatening the very basic of Survival for the vast majority of the population dependent on agriculture.

The two dimensions are interrelated in the sense that the problem at the larger structural context
cannot be separated from the problem that the individual farmer faces.

There is a need for institutional structures to organise the farmers to help them address their concerns
and problems.

Globalization and agrarian crisis

During 1990s number of significant development in the Indian economy have impacted upon the
agricultural sector. The adoption of the structural adjustment program (SAP) in 1991, has resulted in
major policy shifts, with serious implications for agriculture.

Why no new agricultural Policy was announced in 1991, these changes are reflected in the National
Agriculture Policy announced by the BJP-led NDA government on 28 July 2000, the main goal of which
was to make agriculture an industry.

Second, there has been an increasing fragmentation of Holdings: marginal Holdings have doubled,
medium Holdings have dropped and large Holdings have drastically declined.

Third, the agricultural sector has experienced several unfavourable trends such as a mark slowing down
in the rate of Agricultural growth winding of disparities between the agricultural and non agricultural
sector.

The slowing of growth rates in the state with high irrigation, which had shown dynamism during the
Green Revolution and the urgent need for Strategies for dryland agriculture and watershed
Management.

1. Liberal Import of Agriculture Products

The crash of prices of Agricultural Products in India was because of removal of all restriction to
import this products.
Thus, the cultivation of such products became unprofitable and so the production was fully or
partly stopped.

2. Cutback in Agricultural Subsidies

In the post reform period, the government reduced different types of subsidies to agriculture,
and this has increased the production cost of cultivation and made agriculture less profitable.

3. Lack of easy and low-cost loan to agriculture

 After 1991 the lending pattern of commercial banks to agriculture drastically changed and the
interest was not affordable by the farmers.
The National Commission for agriculture, headed by M.S. Swaminathan, also pointed out that
removal of lending facilities in concessions of bank during the post Reform period have
accelerated the crisis in agriculture.

4. Decline in government investment in the Agricultural sector

The expenditure of the government in rural development, including agriculture, irrigation,

declined from an average of 14.5% in 1986-1990 to 6% in 1995-2000.
The rate of capital formation in agriculture came down, and Agricultural growth rate was also
reduced.

5. Restructuring of the public distribution system (PDS)

The governments restructure the PDS by creating two groups- Below Poverty Line(BPL) and
Above Poverty Line (APL) and continuously increase the prices of food grains.

As a result, even the poor people did not buy the subsidized food grains.

It affected the food security of the poor especially in the rural areas and indirectly affected the
market and the farmers.

6. Special Economic Zones (SEZs)

The system of taking over Land by the government for commercial and industrial purposes was
introduced in the country and mostly it is the fertile land that has acquired.
It deprives the farmers of their land and livelihood, it is harmful to agriculture.

As a result of these policies, the train for farming show that 14% women in 3.2 % of cultivated since
2001 have abandoned farming.

Agrarian distress and Farmers suicide

For the past one decade, over 15,000 farmers in India have been taking their own life each year. The
recent report of the NCRB, 15,964 farmers committed suicide in 2010. The most five affected states are:
Maharashtra, Karnataka, Andhra Pradesh, Madhya Pradesh and Chattisgarh.

Debates on suicide

1. The first debate tries to locate the suicide as part of multiple crises. The crises are ecological,
economic and social, each interlinked with the other.
2. The second debate attempt to locate the crisis or suicide to the negative growth of agrarian
economy in the recent past as argued by Vandana Shiva.
3. The third debate attempts to locate the reason for the society in adapting the World bank
model of agriculture or what is called McKinsey model of development that created spaces for
industry driven agriculture which ultimately translated into agri-business development.
 4. According to the fourth discourse the suicide is because of the increasing indebtness.
5. The final discourse, which came from the state, attempts to locate the reasons in multiple
issues, such as incidents and floods, manipulation of prices by traders, supply of spurious
pesticides and seeds.

Conclusion

The contemporary agrarian crises in India, is a direct outcome of the economic reforms in India since
1991, which led to gradual withdrawal of state from Agriculture .

Though India chiefly inherited most of these problems from British rule, it did too little to resolve
them after independence.

During the period of economic Reforms, state did nothing to transform the depressed traditional
instiutional framework of agriculture.

The solution of the problem is not in a few "packages" but in drastic changes in the present
economic conditions related to Agriculture. For this, the government should be ready to take bold
steps. Farmers, Agricultural labourers and people's organizations in civil society should work
collectively to assist and persuade the government to make the necessary changes. It is high time
that the government and the people realise that India can become a "superpower" only when the
vast majority of people, especially farmers in rural areas, bacome prosperous and are really
empowered.

The words of M.S. Swaminathan are relevant here: "In a country where 60% of people depend on
Agriculture force based on food security rather than a nuclear force".