RURAL SOCIETY AND POLITY
Problem statement: Problems and Challenges faced by Indian Agriculture.
Submitted by:
Abhijeet Vasudev
Roll no:18
PGDM Rural Management (2023-2025)
Trimester 1
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Table of Contents
Abstract 1
Introduction 2
Problem statement 3
Solution 4
Conclusion and reference 5
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ABSTRACT
Agriculture is providing the best support to the Indian Economy. More than 70% of the total
population depends on it. the dependence of Indian agriculture on uncertain rains, drought,
cyclones, pests, and diseases. Etc. In addition, the farmers experience different kinds of risks
from sowing to harvesting related to different crop enterprises and for different agro-climatic
regions and areas. It then indicates the demand for crop insurance as an alternative to
managing production risk. It then brings up the historical overview of crop insurance
products and their operation. It is followed by a discussion on the currently available crop
insurance products for specific crops and regions and it discusses the recent products with
their special features and defects in those products. Agriculture in India is a critical sector that
faces a multitude of challenges, encompassing economic, environmental, and societal
dimensions. This abstract explores the major issues plaguing Indian agriculture, shedding
light on the complexity of the problems and the need for comprehensive solutions. One of the
foremost challenges in Indian agriculture is the issue of small landholdings. The average farm
size is shrinking, making it difficult for farmers to achieve economies of scale and modernize
their operations. This, coupled with the lack of access to credit and capital, leaves many
farmers trapped in a cycle of subsistence farming. Another critical challenge is the overuse of
water resources. India's agriculture relies heavily on groundwater, leading to the depletion of
aquifers and the risk of water scarcity in many regions. Climate change exacerbates this
problem, causing erratic monsoon patterns and increasing the unpredictability of rainfall.
Additionally, the lack of modern infrastructure, including cold storage facilities and efficient
supply chains, leads to significant post-harvest losses. These losses not only reduce farmers'
income but also contribute to food waste in a country where millions go hungry.
INTRODUCTION
Indian agriculture has long been the backbone of the country's economy, providing
livelihoods to a significant portion of its population. However, this sector faces a multitude of
problems and challenges that have far-reaching implications for both the agricultural
community and the nation Over the years, as India has undergone rapid economic and social
changes, the agriculture sector has struggled to keep pace, leading to a complex set of issues
that demand attention. In this introduction, we will explore the background of the problem
statement by identifying some of the key challenges that Indian agriculture confronts,
including issues related to productivity, sustainability, market access, and more.
Understanding these challenges is crucial for formulating effective policies and strategies to
ensure the continued growth and prosperity of this vital sector.
The farmers in India continually face risks in crop production due to natural disasters, water
scarcity and unexpected weather condition. The risk factors may create the maximum losses
to the farmers at the time of production. Due to the above-mentioned risk factors the yield
level goes down. It creates the worst economic level to the farmers. The majority of our
farmers’ capacity is limited due to scarce resources and small holdings. They cannot bear the
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risks which are created by the nature. That failure is not only for income but also it will affect
the next investment. This situation leads the farmers to indebtedness. This risk burden can be
reduced through the crop insurance. On an average 12 million hectares of crop area is
affected annually by these calamities severely impacting the yields and total agricultural
production. Crop insurance is the one tool to protect the farmers against the risks. It helps to
overcome the risk, to improve their crop yield and also encouraging them for large
investments.
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the risk was transferred from the farmers to the Government. So the Government is
responsible for providing the better relief to their farmers. It will reduce the crop failure and
increase the crop Yield.
Problem statement
Promoting agricultural items have been representing a major issue for farmers. The farmers,
who produce crops, battle a great deal to bring them up. They furrow and tilt the land, seed
the plants, water assets, clean them, and pack the items fit to be taken to the business sectors
available to be purchased. Indeed, even at the hour of delivering the yields and at the hour of
selling them they face a ton of obstacles and hindrances, for example, the impedance of
representatives and agents, absence of protection office, absence of money, the significant
expense of inputs, storehouses, and shipping issues. In the market, the farmers are cheated by
the specialists the buy like charging the merchandise less, gauging the items in uneven
machines, etc. Consequently, the farmers face various issues structuring the underlying phase
of creation to work the offer of the items on the lookout. And all these are intertwined and at
last, have a profound effect on agricultural advertising.
Indian agriculture faces numerous challenges and problems that hinder its growth and
sustainability, jeopardizing food security, rural livelihoods, and the overall economic well-
being of the nation. These issues include:
No. proper management of Irrigation:
Irrigation in India can be broadly classified into two parts, each having different issues. There
are a few major problems with surface irrigation. Irrigation facilities are inadequate and there
is no effective system management for how much water is stored, how much is used for
irrigation or what value can be added to this water. Consequently, farmers depend on rainfall,
specifically the Monsoon season. A good monsoon results in robust growth for the economy
as a whole, while a poor monsoon leads to sluggish growth. With groundwater, the major
problem is of equity
Dependence of Agriculture on Weather:
Agriculture in India and many other developing countries depends on the monsoon because
irrigation facilities are not fully developed. If the monsoon fails or it rains heavily or
untimely, it ruins agricultural production. Agriculture is also a gamble with temperature. Too
high a temperature negatively affects the productivity of a crop. The present insurance system
in India does not cater much for any loss of crop due to unfavourable and unavoidable
climatic conditions or pest epidemics. Small farmers who have taken loans to raise crops fall
into heavy debt in such situations and if this continues, the poor farmer may starve and
sometimes even commits suicide as reported in Maharashtra and Andhra Pradesh.
Policies lead to show Agricultural growth:
Show agricultural growth is a matter of concern as a most of India’s population is
dependent on rural employment for a living. Current agricultural practices are neither
economically nor environmentally sustainable and India’s yields for many agricultural
commodities are low. Poorly maintained irrigation systems and lack of good extension
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service are among the factors responsible. Farmers’ access to markets is hampered by
poor roads, rudimentary market infrastructure, and excessive regulation.
Poor socio-economic condition of Farmers:
Illiteracy, the root cause of farmers’ poor socioeconomic condition, should be tackled
vigorously. Though the government is taking the initiative by adopting policies like
universal education, a highly centralized bureaucracy with low accountability and
inefficient use of public funds limits their impact on poverty. Lack of technical
knowledge and awareness are also responsible for low productivity, adding to the
problem of poverty among farmers. Other causes are the slow progress in
implementing land reforms inadequate or inefficient finance and marketing services
for farm produce and inconsistent government policy. Agricultural subsidies and taxes
often change without notice for short-term political ends.
Inadequate Infrastructure & low Investment:
India has inadequate infrastructure and service because of low investment. Farming
equipment and infrastructure are scarce outside the provinces of Punjab and Haryana.
Because many of the farms are small, the farmers cannot afford irrigation systems that
would increase productivity. Most big farms are family-owned and run and do not
take advantage of economies of scale – the concept that the cost per unit falls as
output quantities increase, because the problem of land absenteeism in big farms
which hinders the development of land increase productivity because the tenant who
cultivates the land has little care for its development or productivity. Low investment
in big and small of farms leads to lower production, inefficiency, and higher costs, one
of the causes of food inflation in India. 6. Disasters leading to Rural Poverty: Rural
poverty has two characteristics: the poverty of rural human beings and the poverty of
weather prone rural areas. The degradation of natural resource may be caused by
drought or flood because of global warming or by modern farming methods which
affect the land negatively, ultimately making rural people poor. The first one leaves
the land barren and the second one, though costly, leads to large scale economies.
Because of high returns, farmers are tempted without giving thought to its ill effects.
The poor who cannot afford it fall further into the trap of poverty because they cannot
compete with rich farmers while casual laborers lose their jobs with the introduction
of mechanization. To remove rural poverty, small farmers and women must be
integrated into the development effort, so that they also contributor to the removal of
poverty.
Disasters leading to Rural Poverty:
The average size of Land Holdings is small: The average size of land holdings is less
than 20,000 m2 and subject to fragmentation due to land ceiling acts and, in some
cases, family disputes. Such small holdings are often overmanned, resulting in
disguised unemployment and low productivity of labour. The degradation of natural
resource may be caused by drought or flood because of global warming or by modern
farming methods which affect the land negatively, ultimately making rural people
poor. The first one leaves the land barren and the second one, though costly, leads to
large scale economies. Because of high returns, farmers are tempted without giving
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thought to its ill effects. The poor who cannot afford it fall further into the trap of
poverty because they cannot compete with rich farmers while casual laborers lose
their jobs with the introduction of mechanization. To remove rural poverty, small
farmers and women must be integrated into the development effort, so that they also
contributor to the removal of poverty.
The average size of Land Holdings is small:
The average size of land holdings is less than 20,000 m2 and subject to fragmentation
due to land ceiling acts and, in some cases, family disputes. Such small holdings are
often overmanned, resulting in disguised unemployment and low productivity of lab
our.
Use of Technology is Inadequate:
Adoption of modern agricultural pactices and use of technology is inadequate,
hampered by ignorance, high costs and impracticality in the case of small land
holdings. In India, farming practices are too haphazard and non-scientific and need
some forethought before implementing any new technology. The screening of
technology is important since all innovations are not relevant or attractive to all areas.
SOLUTIONS
1. Dependency Monsoonal: Indian agriculture heavily depends on the monsoon, which
can be unpredictable.
Solution: Promote the adoption of water-efficient farming techniques, such as drip irrigation
and rainwater harvesting, to reduce reliance on monsoons. Additionally, develop drought-
resistant crop varieties through research and development.
2. Land Fragmentation: Small and fragmented land holdings reduce economies of
scale.
Solution: Encourage land consolidation through land pooling and cooperative
farming to make agricultural practices more efficient and profitable. This can be done
through government policies and incentives.
3. Lack of Modern Technology: Many farmers still use traditional, outdated farming
methods.
Solution: Provide access to modern farming technologies, machinery, and training.
Government initiatives and public-private partnerships can help in the adoption of
these technologies.
4. Market Access and Price Volatility: Farmers often face challenges in accessing
markets and getting fair prices for their produce.
Solution: Develop efficient and transparent agricultural markets and strengthen
farmer-producer organizations. Implement price support mechanisms and introduce
contract farming to ensure better price stability.
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5. Soil Health and Degradation: Soil quality is deteriorating due to overuse of
fertilizers and pesticides.
Solution: farmers Promote sustainable farming practices, including organic farming,
crop rotation, and the use of organic manure. Conduct soil testing and provide
customized recommendations to farmers.
6. Lack of Credit and Insurance: Farmers often lack access to affordable credit and
insurance.
Solution: Strengthen the rural banking system and provide easy access to credit.
Promote crop insurance schemes to protect farmers from crop failures and natural
disasters.
7. Post-Harvest Losses: Significant quantities of crops are lost due to poor storage and
transportation.
Solution: Invest in modern storage facilities and transportation infrastructure.
Promote cold storage chains and efficient supply chain management.
8. Climate Change: Changing weather patterns and extreme events affect crop yields.
Solution: Implement climate-resilient farming practices, develop drought and flood-
resistant crop varieties, and raise awareness among farmers about climate adaptation
strategies.
9. Education and Extension Services: Many farmers lack access to quality education
and agricultural extension services.
Solution: Improve agricultural extension services to educate farmers about best
practices, new technologies, and government schemes. Develop digital platforms for
disseminating information.
10. Environmental Sustainability: Overuse of resources can harm the environment.
Solution: Promote sustainable agriculture by reducing chemical inputs, conserving
water, and encouraging agroforestry and organic farming practices.
Conclusion
The major problems confronting Agricultural sector at the moment are a knowledge
gap and an infrastructural gap, particularly in rural regions. Issues related to water,
commerce, and transport networks add considerable expense to producers' livelihoods
An even worse problem is lack of procurement systems. There seem to be a lot
programmes targeted at developing agriculture. Non-efficient transport methods
cannot lead to an increase production, decreased cost, or higher price collection at the
ground level. Furthermore, ineffective state govt. support exacerbates these issues.
Thus, corporate agriculture may be a solution to the Indian agricultural sector, but it
requires a deep thought and innovative legislation so that neither the corporations nor
the producers or farmer suffer. Food supply depends on agricultural output.
Agricultural
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development in India necessitates the development of highly creative concepts for the
improvement of this area. Furthermore, farming is a physically demanding and back-
breaking occupation in the absence of automation. A direct consequence of this has
been the abandonment of farming by the majority of farmer's children in favour of
other careers. Farmers get more income when they sell their property to developers,
shopping complexes, and manufacturing plants.
