Chapter – 3

Agricultural Development in India

 Indian Agriculture
• India, China, and Brazil have become major forces in the
global agricultural economy.

 Agriculture Sector is changing the socio-economic

environments of the population due to
liberalization and globalization.

 It continue to be the major source of employment,

successfully provided food and raw material to
industrial sector, earning foreign exchange.
 Background on Indian Agriculture
• Marginal and small farmers dominate in agri.

• Major crops are rice, wheat, maize, coarse cereals,

groundnut, cotton, sugarcane, fruits and vegetables
 About 43% of India’s geographical area is used for
agricultural activity

• Inspite of high dev, still 60% of cultivated area is rainfed as

only about 40% of area is under irrigation.

• But cultivable area is more than China. We can’t longer

rely on rainfall, need of developing new irrigation facilities.
 Indian Agriculture

• Agriculture continues to play a major role in Indian

Economy.
• India ‘s population is 1.21 billion in 2011.
55% pop engaged in agri.
• The contribution of agriculture in employing India's male
workforce declined from 75.9 % in 1961 to 60 % in 1999–
2000.
 Provides about 65% of the livelihood
 Accounts for 15% of GDP, , but it is tremendous amount in
absolute figure.
 Contributes 21% of Total Exports, and Supplies Raw materials to
Industries
 Food grains production – 240 Mt
 Agricultural Resources
 Total Geographical Area (TGA) - 329 M.H
 Net Sown Area (NSA) - 143 M.H
 Net Irrigated Area - 56 M.H
 Area threatened by land degradation - 50% of T GA
 Drought-prone Area - 190 M.H
 India’s Position in World Agriculture
 Rank
 Irrigated Area First
 Total Cereals Third
 Wheat Second
 Rice Second
 Coarse grains Fourth
 Total Pulses First
 Oil Seeds Second
 Fruits and Vegetables Second
 Milk First
 Livestock First
• India is the world's largest producer of cashew nuts,
coconuts, ginger, turmeric, banana, pulses, & black pepper.
• India is the second largest producer of groundnut, wheat,
vegetables, sugar and fish in the world.
 India's Rank Next to
• Commercial Crops (Million Tonnes)
 (A) : Sugarcane 342 1800 19.0 Second after Brazil
 (B) : Tea 0.96 4.7 20.6 Second after China,
 (C) : Coffee (green) 0.30 8.45 3.6 Seventh after Brazil, Vietnam, Indonesia.
 (D) : Jute & Jute like Fibres 1.96 3.58 54.7 First
 (E) : Cotton (lint) 8.50 26.14 32.5 Second after China
 (F) : Tobacco Leaves 0.83 7.37 11.3 Third after China, Brazil
• Livestock (Million Heads)
 (A) : Cattle 211 1430 14.7 Third after Brazil, China
 (B) : Buffaloes 113 195 57.8 First
 (C) : Sheep 75 1094 6.8 Second after China
 (D) : Goats 157 924 17.0 First
• Animal Products
 (A) : Total Milk (000 MT) 127 739.36 17.2 First
 (B) : Total Meat (000 MT) 6228 298871 2.1 Sixth after China, U.S.A., Brazil.
• Implements (000 numbers)*
 Agricultural Tractors-in-use 3149 29320 10.7 Second after USA
 Indian Agriculture
• Turning point in Indian agriculture history is as compared with a
rate of growth of less than 0.5 % per annum during 1904-5 to
1944-45,
the agricultural sector recorded an annual growth rate of 2.7 %
during 1949-50 to 1983-84.
• This growth has been achieved as a result of high priority
accorded to agriculture.
• The policy makers adopted a two fold strategy for regenerating
agriculture immediately after independence:
 The first element was to implement land reforms in order to
remove institutional bottlenecks and
 the second element was to undertake massive investment in
irrigation and other infrastructure in order to update the existing
agricultural technology.
 Performance of Agriculture

• Growth performance in agriculture (%)

 1950-1 to 1964-5: 2.51 (area growth + yield growth)
 1967-8 to 1980-1: 2.20 (yield growth, green revol)
 1980-1 to 1990-1: 3.07 ( speedly spread of green revol)
 1992-3 to 2004-5: 2.76 (reform period)
 1997-8 to 2004-5: 1.60 (neglect of agri.)
 2004-5 to 2010-1: 3.47 (revival of growth)
 The policy, institutional and investment focus during GR
time helped India achieve its food self sufficiency goals.
 However, now different policies are needed to focus on
small holdings, rainfed areas, lagging regions, rural non-
farm for sustainable agricultural transformation
 Concerns & Challenges in Agriculture
 Small – sized Holdings:
Agri is still main source of livelihood
Indian agriculture is characterized by small and
fragmented land holding. There are about 129 million
operational holdings possessing about 158 million ha
land with average farm size of only 1.23 hectares.

. Per capita availability of land declined from 0.92 hectare

in 1951 to 0.48 hectare in 2000 and it is continue
declining.

• It is b’cos of increasing Pop growth and Law of inheritance.

While, Ideal size of holding allows, most efficient use of land,
labour and capital with a given tech of production.
 Concerns & Challenges in Indian Agriculture

• Rising Number of Small and Marginal Farmers and

Fragmenting Farms

• Around 83 % of farmers have land holdings less than

2 ha and they cultivate nearly 41 % of the arable land.
• On the other hand, less than 1 % of the farmers have
operational land holding above 10 ha and account for
11.8 % the total cultivated land.
• The share of small and marginal farmers has
increased from 69.7 % in 1970-71 to about 83 %.
 Concerns & Challenges in Indian Agriculture
 Low productivity:
Reasons are: Limited use of Fertilizer, Limited use of HYV,
Lack of Farm Mechanization, Small sized Holdings, Rural
Indebtedness, Traditional agri practices still prevail. Use of
new agri tech has remained confined to few areas.
Disparities Increased : Since the Green Revolution era, India
has achieved impressive growth in agricultural production,
boosting national food security and reducing poverty.
GR technology mainly benefited the high potential and
irrigated areas. Increased Regional and Societal disparities.
They have less impact on dry land and rainfed areas. Also,
yield growth plateaued in the irrigated areas. Technology
fatigue.
 Concerns & Challenges in Indian Agriculture

 - Consumption patterns shifting: With urbanization and

income growth from cereals to non-cereal food (pulses,
edible oils, fruits, vegetables, dairy and other livestock,
fisheries) etc.
Supply of these commodities are low as compared to
demand.
 - Key Development Challenges: for the coming decades
are meeting the growing and diversifying food demand,
especially for livestock and horticultural products,
managing natural resources sustainably, and raising the
productivity of rain fed agriculture.
Agricultural Development Before
Independence
 Indian Agri in Early Period
• Indian agriculture began by 9000 BC as a result of early
cultivation of plants, and domestication of crops and
animals.
• Barley & wheat cultivation along with the rearing of
cattle, sheep and goat was visible in 8000-6000 BC.
• The Tamil people cultivated a wide range of crops such
as rice, sugarcane, millets, black pepper, various grains,
coconuts, beans, cotton, and sandalwood.
• Jackfruit, coconut, palm and plantain trees were also
known.
• Systematic ploughing, manuring, weeding, irrigation and
crop protection was practiced for sustained agriculture.
 Late Middle Ages – Early Modern Era
(1200–1757 CE)
• Cultivation of tobacco, introduced by the Portuguese
spread rapidly.
• The Malabar Coast was the home of spices, especially
black pepper, that had stimulated the first European
adventures in the East.
• Tea, which was growing wild in the hills of Assam.
• Vegetables were cultivated mainly in the vicinity of
towns. New species of fruit, such as the pineapple,
papaya, and cashew nut, also were introduced by the
Portuguese.
• The quality of mango and citrus fruits was greatly
improved.
 Agri during British Rule
• British rule in India can be divided into 2
periods
(a) East India Company from 1757 to 1858,
(b) Rule of British govt from 1858 to 1947.
• At that time of British Arrival, Indian
economy was by & large, was self sufficient,
possessing a fine balance b/w agri &
industry.
 Colonial British Era (1757–1947 CE)
• From 1891 to 1946, the annual growth
rate of all crop output was 0.4 %, and food-
grain output was practically stagnant.
• There were significant regional and
intercrop differences, however, non-food
crops doing better than food crops.
• Among food crops, by far the most
important source of stagnation was rice.
 Agri during British Rule
• British interest in India were governed by the
requirement of Industrial revolution which started
in Britain in middle of 18th century and then spread
to other regions of Europe.
• They secured raw materials from India for factories
in Britain and to ensured permanent market in India
for the British manufactures,
• They adopted some measures like
– Commercialisation of Agri:
– Introduction of Feudal Land Relations
– Occurrence of Famines and Scarcities
 Commercialisation of Agri:

• British encouraged export of raw materials and

imports of manufactured goods.
• Farmers were forced through Zamidars and
British agents to switch over from Food crops
to Cash crops and sell it for export.
• Dev of railways helped a lot in this matter.
• Switch over from food crops to cash crops
disturbed balance b/w demand and supply of
foodgrains, resulting into scarcities.
 Colonial British Era (1757–1947 CE)
• Bengal had below-average growth rates in both food
and non-food crop output, whereas Punjab and
Madras were the least stagnant regions.
• In the interwar period, population growth
accelerated while food output decelerated, leading
to declining availability of food per head.
• The crisis was most acute in Bengal, where food
output declined at an annual rate of about 0.7 %
from 1921 to 1946, when population grew at an
annual rate of about 1 %.
 Pre- Independence Period
• So, Colonial agri was characterised as stagnant using
primitive tech with exploitative institutions.
• The growth rate of output of all agri crops puts
together for the half century preceding
independence was only 0.4 % per annum.
• Relatively higher growth rate of non-foodgrains was
largely due to greater support to commercial crops
from the British Rulers. This was due to their major
concern for supply of agro – based raw materials to
British Industries
Agricultural Development Post
Independence
 Indian Agri Post - Independence
• At the time of Independence, Indian agri was
traditional and stagnant in every respect.
• It was characterized by Feudal land relations,
primitive tech, resultant low productivity per
hectare, high pressure on land res, so first task
of Indian Govt in the immediate post-
independence period was , therefore, to initiate
growth process in agri on modern lines.
• This modernization of agri was required both in
terms of tech and institutional changes.
 Indian Agri Post - Independence
• The most important event in the social history
of India was land reforms enacted and
implemented during the mid-fifties.
• Whereas land reforms have determined the
pattern of land distribution and thereby the
distribution of incomes and land relations,
technology has determined the production
potential within the context of the given
institutional framework.
 Indian Agriculture
• Various institutions for agriculture related research and
development in India were organised under the Indian
Council of Agricultural Research (est. 1929).
• Large investments were made for the dev of research
system under the aegis of the Indian Council of ICAR
and the State Agricultural Universities (SAUs).
• Other organisations such as the National Dairy Development
Board (est. 1965), and National Bank for Agriculture and
Rural Development (est. 1982) aided the formation of
cooperatives and improved financing.
• Increasing foodgrains output and achieving self
sufficiency in foodgrains become a matter of high
priority for the policy makers.
 Indian Agriculture (1947 onwards)
• Since independence, many special programmes were
undertaken to improve food and cash crops supply.
• The Grow More Food Campaign, Community
Development Programme, Intensive Area
Development Programmes (IADP) and Integrated
Production Programme (1950s) focused on food and
cash crops supply respectively.
• Land reclamation, land dev , mechanisation,
electrification, use of chemicals - fertilisers in
particular, and development of agriculture oriented
'package approach' of taking a set of actions instead
of promoting single aspect soon followed under
government supervision.
 Post Independece
• Agri growth during 1949-50 to 1964-65 was as
high as 3.15% per annum with food grains at
2.82% per annum, which was much below the
growth rate of 3.74% per annum recorded by
non-food grains.
 Growth Rate of Yield in Pre & Post GR
CROPS 1949-50 TO 1967-68 TO
1964-65 1994-95
Rice 2.25 2.34
Wheat 1.27 3.14
Jowar 1.49 1.98
Bajra 1.24 1.65
Maize 1.18 1.64
Pulses -0.19 0.9
Cotton 2.04 2.81
ALL CROPS 1.21 2.02
 Indian Agri Post Independence
• The many 'production revolutions' initiated from
1960s onwards included in India are:-
a. Green Revolution in India. ( 1966 onwards)
b. Yellow Revolution (Oilseed: 1986-1990)
c. Operation Flood (Dairy: 1970-1996)
d. Blue Revolution (Fishing: 1973-2002) etc.
• The economic reforms of 1991 also bought
significant growth in the agricultural sector and
newer innovations of Agro-processing and Bio-
technology.
 Indian Agri Post Independence
• Regional inequalities are noticeable, in north western
states of Punjab, Haryana and UP which have recorded
consistently high growth rates since mid-sixties.
• On the other hand the Eastern region comprising of
Orissa, Bihar and West Bengal has had a dismal
performance.
• Except for Andhra Pradesh the recent performance of
the southern region has not been very satisfactory.
• Being primarily dependent on rains the central region
has demonstrated a high degree of instability in its
growth performance.
 Indian Agri Post Independence
• The economic reforms resulted in emergence of middle class
which is the main consumer of fruits, dairy, fish, meat and
vegetables a marked shift from the earlier staple based
consumption.
• Since 1991, changing consumption patterns led to a
'revolution' in 'high value' agriculture while the need for
cereals has experienced a decline.
• The per capita consumption of following crops from 1977 to
1999 are shown as follows:-
– Consumption of fruits increased by 553%.
– Vegetables increased by 167 %.
– Dairy products by 105 %.
– Non-vegetarian products by 85 % in India's rural areas
alone.
 Approach to Agri. Dev in India
• After Independence, Dev of agri has been the major
concern of Govt.
• During first decade of planning (1950-60), main emphasis
was on extension of irrigation so that more land could be
brought under cultivation substituted for inferior crops.
• During this period , sincere efforts were also made at
introducing land reforms.
• Along with it, efforts were also made for security of tenancy,
regulation of rents.
• More marketing facilities and warehousing facilities were
expanded.
• After 1960-61, emphasis on and reform and greater
attention was paid to technological change.
 5 YEARS PLANS AND AGRI DEV
• The first task of Indian Government in the immediate
post-independence period was to initiate growth process
in agriculture.
• The agricultural policy was governed by a planning
framework.
• Successive Five Year Plans have stressed on self-
sufficiency and self-reliance in foodgrains production and
concerted efforts have resulted in substantial increase in
production and productivity.
• This is clear from the fact that from a level of about 52
million tonnes in 1951-52, foodgrains production rose to
above 241.5 million tonnes in 2010-11.
 5 YEARS PLANS AND AGRI DEV
• Five-Year Plans aimed at improving the
infrastructure through irrigation, stepping-up
the use of fertilisers, improved varieties of
seeds implements and machinery and supply
of credit.
• As a result there has been a significant
increase in the use of modern inputs leading
to higher productivity and production.
 Agri in Post Independence
• Agri products like Rice, tea, coffee, cashew, spices,
tobacco and leather are imp items of India’s exports and
hence foreign exchange earnings.
• It is also a source of raw materials for agro – based
industries including Textiles, cigarettes, jute, sugar, paper
etc.
• More over, it provides market for capital goods like
Tractor, pump sets and other agri machinery and Inputs
( Fertilisers, Insecticides, light consumer goods)
• Govt. has invested huge resources for agri dev under
various plans.
 Agri in Post Independence
• Diversification and expansion of rural economy was sought
through emphasis on dev of dairying and horticulture along
with extensive progr for dev of fisheries.
• Foodgrains production went up by 20% and output of cotton
and of major oilseeds showed an improvement of 45 and 8%
respectively.
• Over 6 million acrs of land was brought under irrigation
through major works and another 10 million acrs benefited
through smaller works.
• With increased supplies of fertilizers and seeds and furthur
expansion of national extension movement, sound foundation
were laid for future dev of agri sector.
• Through it emphasis on agri, irrigation, power and transport
the plan aimed at creating base for more rapid eco and
industrial expansion in future
 Agri in Post Independence
• First FYP (1951-56) accorded the highest
priority to the agri sector to tide over the
difficult food problem created by the partition
of the country.
• Two major component of agri dev strategy
have been : (A) Subsidies on Inputs and
(B) Minimum support price for
output.
 1 ,2 and 3 Five year Plan
st nd rd

• The first three Five-Year Plans ( 1951- 1966) concentrated on

growth with some institutional changes including abolition of
intermediaries in agriculture, like Zamindars.
• In the mid-Sixties, a new technology in the form of high-yielding
varieties (HYVs) was introduced for cereals.
• Apart from the new technology, public investment in agriculture
particularly in irrigation, was stepped up significantly.
• The production of food grains increased from 54 million tones in
1950-51 to 65.8 million tones at the end of the first five year
plan.
• Production of all agricultural commodities increased by 22.2 % to
32 % during the First Plan.
• First FYP: 1951-56, This was naturally priority
seeking to raise the std of living of masses.
• This plan substantial increased agri
production for foodgrains as well as for
commercial crops.
• The targets proposed in Plan were realised
through devl prog, relating to major and minor
irrigation works, extension of cultivation,
reclamation and intensive farming based on
application of results of research
 IInd FYP (1956-61)
• Land Reforms got special significance as they
provided the social, eco and institutional
framework for agri dev.
• Scope of increasing area under cultivation was
extremely limited, the main source of increase
in agri production was increase in yields from
more intensive, more efficient and more
profitable agri production.
• Food production rose from 65.8 million tones
to 79.7 million tones.
 IInd FYP (1956-61)

• During IInd Plan, the main elements of agri

planning were the following:
– Planning of Landuse
– Determination of targets, both long and short
term.
– Linking up of dev programmes and Govt assistance
to production targets and land use plan including
allocation of fertilisers etc.
– An appropriate price policy.
 IIIrd FYP (1961 – 65)
• Speedly, implemented land reforms programmes was to
eliminate all elements of exploitation and social injustice
within agrarian system to provide security to the tiller of soil
and assure equality of status and opportunity to all sections
of society.
• Main measures were abolition of intermediary or rent –
receiving tenures and reform of tenancy including regulation
and reduction of rent and security of tenure.
• Steps were taken to reduce the disparities in ownership of
land
• Bhoodan and Gramdan movements greatly helped to create
a favourable atmosphere for implementing progressive
measure of land reforms.
 IIIrd FYP (1961 – 65)

– Dev of irrigation from large as well as small works,

– Soil conservation prog and supplies of fertilizers,
improved seed and credit ,
– Along with the provision of extension services
reaching down to the village level,
– Measure undertaken directly to increase
production.
– Supplies of fertilisers were also made available on a
large scale.
• Efforts were made to strengthen agri adm in
States and stress was placed on the closest
possible coordination b/w diff agencies
 IIIrd FYP (1961 – 65)

• 3rd plan targeted to increase overall

agricultural production by 30 %.
• The actual output of food grains was 88.4 MT
in 1964-65 and 72.3 MT in 1965-66, caused
due to the drought condition of 1965-66.
• Due to implementation of H.Y.V.
programme, there was a recorded food
grain production of 95.6 MT in 1967-68
and 1968-69.
 IIIrd FYP (1961 – 65)

• Major programmes for increasing agri

production were following
– Irrigation
– Soil conservation, dry farming and land
reclamation
– Supply of fertilisers and manures.
– Seed multiplication and distribution
– Better ploughs and improved agri implements,
and adoption of scientific agri practices.
 4 ,5 and 6 Five Year Plan
th th th

• The Fourth Plan ( 1969 - 1974) the actual production of

food grain was 104.7 MT in 1973-74. Application of
science and tech to agri was key strategy.
• The Fifth Plan accorded priority for the spread of H.Y.V.
cultivation, double or multiple, greater use of fertilizer
pesticides and insecticides, minor irrigation to increase
agricultural production.
• The outlay for reclamation of alkaline, saline and acidic
soils and plant protection programmes were enhanced.
• During this Fifth Plan, the production of food grains
increased substantially i.e. 232.5 million tones.
• Further, 6th plan aimed at accelerating the
pace of the implementation of the land
reforms and institution building for
beneficiaries.
• The Sixth Plan annual growth in agricultural
production was 4.3 %.
• The Sixth Plan was officially held as a great
success particularly due to its success on the
agricultural fund.
 7 , 8 and 9 Five Year Plan
th th th

• The Seventh Plan (1983-1987) aimed at an annual

average increase of 4 % in agricultural production.
• The Plan allocated Rs. 39,770 crores for agricultural
sector .
• The major programmes adopted during the plan were,
– : special rice production programme in the eastern region,
– national water-shed programme for rain-fed agriculture,
– national oil-seed development project and social forestry.
• In Eighth Five-Year Plan (1992-1997) Rs.
93,680 crores was allotted for agriculture and
irrigation.
• This Plan targets a growth rate of 4.1 % per
annum for the agricultural sector.
• The ninth five year (1997-2002) plan focused
on increasing agricultural and rural income
and to improve the conditions of the marginal
farmer and landless labourers.
• The plan helped to achieve average annual
growth rate of 6.7%.
 Production of Major Crops and Allied Activities: (1950-51 to 1996-97) (million tonnes)

Crops 1950-51 1970-71 1980-81 1990-91 1996-97

• Food grains 50.82 108.42 129.59 179.39 199.32
• Rice 20.58 42.22 53.63 74.29 81.31
• Wheat 6.46 23.83 36.31 55.14 69.27
• Cereals 15.38 30.55 29.02 32.70 34.28
• Pulses 8.41 11.82 10.63 14.26 14.46
• Sugarcane 57.05 126.37 154.25 241.05 277.25
• Cotton (m.bls) 3.04 4.76 7.01 9.84 14.25
• Nine Oilseeds 5.16 9.63 9.37 18.61 24.96
• Milk 17.00 21.20 31.60 53.90 68.60
• Fish 0.80 1.80 2.40 3.80 5.35

Source: Agricultural Statistics at a Glance, 1997, Min. of Agriculture.

 10 and 11 Five Year Plan
th th

• Agriculture has been the core element of the Tenth Plan

(2002-2007).
• Broad features of the agricultural development under the
Plan include :
– sustainable development of land and water resources,
improvement in the infrastructural facilities,
– dissemination of agricultural technology,
– attracting capital flow in agriculture sector,
– creating additional irrigation potential of 15.61 m. ha,
boosting up agricultural diversification,
– improving agricultural marketing and pricing systems,
liberalising agri - trading, agri - industry and exports,
• 11th Five Year Plan (2007-2012) had
attempted to reverse deceleration of
agricultural growth, food grains production
has touched a new peak of 241.56 million
tonnes in 2010-11.

• Growth in agriculture in the Eleventh Plan is

likely about 3.3 % per year.
• THE END