Page 134 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Indian Economic Policy

Notes There is another point to remember here. In the span of a year, the Indian farmers can grow another
rice crop or a crop of potato or legume or short-duration vegetables. Thus the farmer in India, by
shifting from a mono-cropping to a multi-cropping system, is more concerned with the over-all yield
from all crops during a year, rather than in terms of productivity per hectare of individual crops. Dr.
M. S. Swaminathan, the eminent agricultural scientist, responsible for green revolution in India asserts:
“It is unscientific to make comparisons purely on the basis of individual crops, but it would be more
scientific to compare the cropping system as a whole.” Obviously, the sharp differences shown in
Table 10 do not take into account these factors.
Present Status of Indian Agriculture: Looming Agricultural Crisis

During the last 56 years of planning, India’s agricultural development — more commonly called the
Green Revolution — has been applauded the world over and many developing countries have started
considering India their role model. Initially, India remained a food deficit country for almost two
decades since Independence. But with the Green Revolution, India became not only self-sufficient in
foodgrains but accumulated a huge food surplus - about 58 million tonnes in January 2002.
The agricultural situation started improving after the middle of 1960s with the introduction of high-
yielding varieties (HYVs) of crops and the development of agriculture infrastructure for irrigation,
credit, other input supply, storage and marketing. The high production potential, input-responsive
HYVs motivated Indian farmers to adopt improved and modern technologies. The Government came
out with minimum support prices (MSP) and procurement of agricultural commodities and expanded
the storage, marketing and distribution of foodgrains at the national level.
The major factors for the all-round success of agriculture were : increase in the net area sown, expansion
of irrigation facilities, land reforms, specially consolidation of land holdings — this was the first
phase (1947-65) of agricultural development since Independence; development and introduction of
high-yielding seeds, extensive use of chemical fertilisers, pesticides and improved crop production
technologies — this was the second phase (1965-85) of development in the agriculture sector; price
policy based on MSP and procurement operations, infrastructure for storage/cold storage, increase
in investments — this could be broadly called the third phase of agricultural development in India.
In spite of the spectacular achievements, various constraints and disturbing trends have always
continued to hamper the requisite growth of the agricultural sector :
(i) Agriculture, Still a Gamble in the Monsoons : Despite almost 6 decades of planning, agriculture
in India has continued to be a gamble in the monsoons : failure of rainfall in some parts of the
country and excessive rains and consequent floods in certain other areas of the country. It
appears that the Planning Commission should have devoted more attention and more resources
to the control of the vagaries of the monsoons. During the first decade of planning (1951-61) the
main emphasis on extension of irrigation and in fact, even in the successive decades, considerable
importance was given to the cumulative increase in the area brought under irrigation. In none
of the Plans, however, the irrigation targets had been fulfilled. Besides, even the irrigation
potential created during a plan was not fully utilised for various reasons.
(ii) Limited Use of New Agricultural Technology : Since 1961, the emphasis shifted to the use of
seed-fertiliser-water technology, known as the new agricultural strategy. But the new strategy
succeeded only in wheat and to a small extent in rice; other food and nonfood crops did not
show perceptible improvement in production. Dry land cultivation was not touched at all by
the new agricultural strategy.
(iii) Decline in Investment in Agriculture : We have generally been given to understand that
government investment was significant in boosting growth in agriculture. Besides, the role of
the Government was not only to raise investment but also induce private investment in
agriculture. The figures published by the Government in the Economic Survey are quite
revealing.
In the early stages of technology breakthrough and green revolution, there was some
improvement in private investment in farm assets like irrigation pumps, wells, tractors etc.
Thereafter, private investment declined. Since 1980-81 however, there has been some buoyancy

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