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Indian Economic Policy



                  Notes               Apart from soil and climatic conditions, the cropping pattern of a region will depend upon the
                                      nature and availability of irrigation facilities. Wherever water is available, not only can a different
                                      crop be grown, but even double or triple cropping will be possible. When new irrigation facilities
                                      are provided, the whole method of cultivation may change. A superior crop can be grown; a new
                                      rotation of crops where there was none, or a better rotation over what prevailed may be possible.
                                      One of, the important factors responsible for increase in the cultivation of sugarcane, tobacco, etc., is
                                      the extension of irrigation facilities. It is possible that because of lack of capital, agricultural pre-
                                      requisites, better implements, improved seeds and finance for getting fertilisers, it might not have
                                      been the right crop that was being grown; but given these facilities, the cropping pattern may change.
                                 2.   Economic Factors and Cropping Pattern
                                      Economic motivations are the most important in determining the cropping pattern in a country.
                                      Whatever may have been the position in India in the past there are very clear indications that
                                      Indian farmers are being clearly influenced by economic factors now. Among economic factors
                                      affecting crop pattern, the following are important :
                                      (i)  Price and income maximisation : According to a study of inter-crop price parities
                                          undertaken by the Ministry of Food and Agriculture, “It seems that prices influence the
                                          acreage under the crops in two ways. One is that the variations in the inter-crop price
                                          parities led to shifts in acreage as between the crops. Another is that the maintenance of a
                                          stable level of prices for a crop ... provides a better incentive to the producer to increase
                                          the output” Fixed procurement price of wheat and rice and other Government controls
                                          have induced farmers to shift to cash crops like sugarcane.
                                          According to some authorities, income maximisation pull has greater influence in changing
                                          the crop pattern, that is, the farmer would choose that combination of crops which would
                                          give him maximum of income. Dr. Raj Krishna, however, argues that relative profitability
                                          per acre is the main consideration which influences the crop pattern.
                                      (ii)  Farm Size : There is a relationship between farm size and the cropping pattern. The small
                                          farmers are first interested in producing foodgrains for their requirements. They would
                                          go in for cash crops only after they have met their requirements of foodgrains. Small
                                          holders, therefore, devote relatively small acreage to cash crops than large holders. This
                                          point has be brought out in many empirical studies. But a of Deoria district of Uttar Pradesh
                                          brings out clearly fact that almost all farmers, big and small, try to some cash crops. In
                                          fact, in recent years it is the small farmers who have been increasing their sugarcane a
                                          more than large farmers.
                                          It is true that the need for subsistence traditionally dominated the cropping pattern of the
                                          small farmer. But his need for money income cannot be less than that of the large farmer.
                                          And, as economy grows, we should expect the small farmers to make very significant
                                          adjustments in his crop pattern in order to maximise his income.
                                      (iii) Insurance against risk : The need minimise the risk of crop failures not only explain
                                          diversification but also some specific features of patterns. For instance, the persistence of
                                          millets many regions which puzzles many economists can understood mainly as insurance
                                          against bad seasons dry areas.
                                      (iv) Availability of Inputs : As already indicated, crop pattern is also dependent upon the
                                          availability of such inputs as seeds, fertilisers, water storage an marketing, transport, etc.
                                          Of the additional facilites most rewarding would be irrigation. The availability groundnut
                                          seed was one of the important factors which induced many farmers to increase the area
                                          under the crop in Madhya Pradesh. Another reason why farmers prefer groundnut to
                                          cotton is that the former is quit yielding, while cotton is on the field for a long time and
                                          does not easily satisfy the need for quick cash.
                                      (v)  Tenure : Under the crop sharing system, the landlord has a dominant voice in the choice of
                                          the cropping pattern and this helps in the adoption of income-maximising crop adjustments.
                                 3.   Government Action and Crop Pattern
                                      Government can influence crop pattern through legislative and administrative measures. Steps
                                      may be taken by the Government to ease or subsidise the supplies of the farm inputs and


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