Monday, February 10, 2014

Agriculture development



Agriculture in India has a significant history. Today, India ranks second worldwide in farm development. Agriculture sectors like forestry and fisheries accounted for 16.6% of the GDP in 2009, about 50% of the total workforce. The economic contribution of agriculture to India's GDP is steadily declining with the country's broad-based economic growth. Still, agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India.

In the forthcoming budget and otherwise, expect the spotlight to be on micro-finance, with the usual suspects tagged on — irrigation, water, credit, employment, infrastructure, insurance and research.





But wait and see how well the politicial and financial compulsions are juggled.

The Economic Survey indicates a toning down of the language on "shifting" from the minimum support price (MSP) regime for 24 crops but clearly opts for investment over subsidies. It also wants spending on the employment guarantee scheme to be monitored for efficient delivery.








The message comes through once more from the government's "direct attack" on unemployment, the employment guarantee scheme. There is an emphasis on delivery, the suggestion that this should be used to build robust rural infrastructure — clearly, additional outlays for these "enhanced" government responsibilities need to be met from a "rationalisation" of the subsidy regime.

Over 2500 years ago, Indian farmers had discovered and begun farming many spices and sugarcane. It was in India, between the sixth and fourth centuries BC, that the Persians, followed by the Greeks, discovered the famous “reeds that produce honey without bees” being grown. People in India had also invented, by about 500 BC, the process to produce sugar crystals. In the local language, these crystals were called khanda, which is the source of the word candy.




CLIMATE CHANGE AND INDIAN AGRICULTURE

Agriculture and allied sector still constitutes the single largest component of around 17% of the Gross Domestic Product and providing an employment of around two thirds of the total work force. Its contribution to exports is close to 11 percentage and its intricate linkage with food prices makes it critical to providing not just the food needs of the country but also its neighboring South Asia region. At the country level the agriculture contributes 28 percentages of total GHG emissions. This share in agriculture does not include the fuel used in agriculture for energy use. The main GHG emission in agriculture comes from enteric fermentation which forms close to 60 percentages followed by methane emission from rice cultivation close to 23 percentages.

GHG emission in Agriculture in India

 

Indian Agriculture Sector Opportunities 

Agriculture has been the main source of employment in India for thousands of years, with more than 65% of the population relying on it, even now. When it comes to the Indian economy, agriculture has always been the prominent sector, playing a major role in determining the country’s sustainability and growth.




 

Size of agriculture market in India

 

India is the highest producer of milk, jute, organic fibers, and pulses in the world. It is the second largest producer of sugarcane, wheat, rice, vegetables, fruits, groundnuts, and cotton. India also produces the highest number of plantation crops and spices in the world. Additionally, it leads the production of livestock, poultry, and fisheries too.

  • According to the annual report of the year 2011-12 released by the Department Of Agriculture and Corporation, the Gross Capital Formation in the agricultural sector along with its allied sectors steeply climbed to 87%, when compared against the GCF from 2004-05.

  • In the FY12, the GDP in agriculture and other allied sectors amounted to $151.8 billion.

  • According to the estimation report from the Central Statistical Organization in the financial year 2012, the agriculture sector of India grew by 2.5%.

  • In the financial year 2011, the agriculture industry of India contributed to 7.1% of the GCA, which amounted to $29.6 billion.

  • The Indian subcontinent has contributed to 1.7% of global agricultural trade which took place in the financial year 2010. It is also rated among the top 15 agricultural product exporters in the world.