Problems of Indian Agriculture

Indian agriculture faces a complex web of problems. While the specific difficulties vary from region to region depending on local agro-ecological conditions and historical experiences, a set of common challenges cuts across the country. These range from physical constraints like an unreliable monsoon to deep-rooted institutional hindrances like the failure of land reforms.

Dependence on Erratic Monsoon

Irrigation covers only about 33 per cent of India's cultivated area. This means crop production in the remaining two-thirds of farmland depends directly on rainfall.

The performance of the south-west monsoon is critical. When it is poor, even canal water supplies for irrigation are adversely affected. In drought-prone areas like Rajasthan, rainfall is both meagre and highly unreliable. Even regions that receive high annual rainfall experience considerable fluctuations from year to year, making them vulnerable to both droughts and floods. This is the twin menace of Indian agriculture. For example, the drylands of Maharashtra, Gujarat and Rajasthan experienced flash floods in 2006 and 2017, showing that even low-rainfall areas are not safe from this hazard.

Low Productivity

The yield of crops in India is low compared to international standards. Per hectare output of major crops like rice, wheat, cotton and oilseeds is much lower than in countries like the USA, Russia and Japan.

Because of the very high pressure on land resources, labour productivity in Indian agriculture is also very low. The vast rainfed areas, especially drylands that grow coarse cereals, pulses and oilseeds, have particularly low yields. The question naturally arises: why is agricultural productivity low in dry regions? The reasons include unreliable rainfall, poor soil moisture, and limited access to modern inputs.

Constraints of Financial Resources and Indebtedness

The inputs of modern agriculture — seeds, fertilisers, pesticides, machinery — are very expensive. This resource-intensive approach is unmanageable for marginal and small farmers who have little or no savings to invest.

To tide over these difficulties, most such farmers borrow from institutional sources or moneylenders. Crop failures and low returns from agriculture trap them in a cycle of indebtedness. The implications of severe indebtedness are devastating. It is widely believed that the tragic incidents of farmers' suicides in different states are a direct result of this crushing debt burden.

Lack of Land Reforms

Indian peasantry was exploited for a long time under unequal distribution of land. Among the three revenue systems during the British period — Mahalwari, Ryotwari and Zamindari — the Zamindari system was the most exploitative for peasants.

After Independence, land reforms were given priority, but they were not implemented effectively due to a lack of strong political will. Most state governments avoided taking politically tough decisions that would have gone against the powerful lobbies of landlords. This failure has resulted in the continuation of inequitable distribution of cultivable land, which is detrimental to agricultural development.

Small Farm Size and Fragmentation of Landholdings

A large number of farmers in India are marginal and small farmers. The average size of land holdings is shrinking under increasing population pressure. Furthermore, land holdings are mostly fragmented.

In some states, consolidation of holdings has not been carried out even once. In states where it was done, second consolidation is now required because land holdings have fragmented again through division among the next generation. These small, fragmented landholdings are uneconomic — they cannot support a family or justify the use of modern machinery.

Lack of Commercialisation

A large number of farmers produce crops primarily for self-consumption. They do not have enough land to produce more than their own requirement. Most small and marginal farmers grow foodgrains meant for their own family consumption.

Modernisation and commercialisation of agriculture have largely taken place only in irrigated areas. The vast rainfed tracts remain subsistence-oriented.

Vast Underemployment

There is massive underemployment in Indian agriculture, particularly in unirrigated tracts. Seasonal unemployment ranges from 4 to 8 months in these areas.

Even during the cropping season, work is not available throughout because agricultural operations are not labour-intensive. People engaged in agriculture do not have the opportunity to work round the year.

Degradation of Cultivable Land …