Agricultural Economy

Notes

Agriculture and allied sectors contribute about 16-18% of India's GVA but employ about 45-46% of the workforce, so it remains the main source of livelihood. India is the largest producer of milk, pulses and spices, and the second-largest of rice, wheat, sugarcane, fruits and vegetables; foodgrain output reached a record of about 330 million tonnes in 2023-24.

Land and irrigation: a net sown area of about 140 million hectares; a gross cropped area of about 200 million hectares; about half of the net sown area is irrigated. About 86% of farmers are small and marginal (average holding about 1.1 hectares).

Revolutions

Green Revolution (1960s): HYV seeds of wheat and rice, fertilisers and irrigation; M.S. Swaminathan and Norman Borlaug; Punjab, Haryana and western Uttar Pradesh.
White Revolution (Operation Flood, 1970): Verghese Kurien, NDDB, Amul. Yellow (oilseeds), Blue (fisheries), Golden (horticulture) and Evergreen revolutions.

Land reforms: abolition of zamindari, tenancy reform, land ceilings, and consolidation of holdings.

Institutions and schemes

NABARD (1982), Kisan Credit Card (1998), PM-KISAN (2019), PMFBY (crop insurance, 2016), e-NAM (2016), Soil Health Card (2015), PMKSY (2015) ("Har Khet Ko Pani"), PM-KUSUM, the Agriculture Infrastructure Fund (2020), 10,000 FPOs, and natural farming missions.
Swaminathan Commission (National Commission on Farmers, 2004-06): recommended MSP at least 50% above the cost of production. The Dalwai Committee (2016) laid out the plan to double farmers' income by 2022.

Problems: small and fragmented holdings, low productivity, monsoon dependence, soil degradation and groundwater depletion, price volatility, indebtedness, weak marketing and storage, and climate change.

Key Points

Agriculture: about 16-18% of GVA but about 46% of workers.
Green Revolution (1960s), White Revolution (Operation Flood, 1970).
86% of farmers are small or marginal.
Schemes: PM-KISAN, PMFBY, e-NAM, KCC, Soil Health Card.
Swaminathan Commission: MSP at cost plus 50%.

MCQs

Q1. The White Revolution (Operation Flood) is associated with: (a) M.S. Swaminathan (b) Verghese Kurien (c) Norman Borlaug (d) B.P. Pal Ans: (b).

Q2. The share of agriculture and allied sectors in India's workforce is about: (a) 15% (b) 30% (c) 45% (d) 70% Ans: (c).

Q3. The National Commission on Farmers was headed by: (a) M.S. Swaminathan (b) Ashok Dalwai (c) Shanta Kumar (d) Verghese Kurien Ans: (a).