Examine the various causes of agrarian crisis in India. (UPSC CSE Mains 2018 - Political Science and International Relations, Paper 1)
Agrarian crisis in India is a serious issue of concern as it is adversely affecting the livelihood of people who depend on agriculture. It refers to sluggish growth of agricultural sector due to decline in agricultural productivity and profitability. Faulty implementation of agricultural policies, excessive use of chemicals degrading agricultural lands, price volatility shocks faced by farmers with reduction of trade barriers on agricultural commodities, distress sale of crops due to poor market infrastructure, rise of fragmented landholdings leading to uneconomic way of cultivation created agrarian distress.
Other contributing factors
- Poor Policy and Planning:In the past, Government strategy primarily focused on raising agricultural output and improving food security rather than recognising the need to raise farmer’s income,
- The absence of direct measures to promote farmers’ welfare is also one of the main reasons for agricultural distress.
- Declining Average Size of Farm Holdings:Increasing demographic pressure, disguised employment in agriculture and conversion of agricultural land for alternative uses, have drastically reduced the average land holding.
- Dependence on Rainfall and Climate:Indian agriculture is heavily dependent on monsoon and ever-increasing global temperature has made agriculture more prone to extreme weather events.
- Collapsing Farm Prices:Low global prices have affected exports and the cheaper imports have hurt domestic prices in the country.
- Lack of easy creditto agriculture and dependence on money lenders.
- Fragmented supply chains:
- Large gaps in storage, Cold chains
- Limited connectivity
- Absence of marketing infrastructure
- Lack of Mechanisation:Introduction of latest technology has been limited due to various reasons like accessibility for credit and low awareness.
- Other Reasons:Crop production is always at risk because of pests and diseases.
- Shortage of inputslike seeds and irrigation facilities.
- Deficiencies in Agricultural Produce Market Committees (APMC) Act.
- Profiteeringby middlemen.
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