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• Although India is an agriculture based country, it has several agriculture related problems.
• The productivity of agriculture per hectare is called agricultural productivity.
  We can also know about agricultural productivity by finding the income earned per hectare of agricultural produce.

Reasons for low agriculture productivity can be classified into three major types:

(I) Institutional factors,
(II) Technological factors and
(III) Other factors

(I) Institutional factors for low agricultural productivity:

• The physical, social, economic and legal factors that affect agriculture are known as institutional factors.
• These factors are not in much favour of farmers. As a result, the agricultural development and productivity is low in India.
• The institutional factors remained negative for farming and hence agriculture productivity remained low. These factors are discussed below.

1. Land Revenue Collection Systems:

• Even after India became independent, three Land Revenue Collection Systems namely, Zamindari system, Mahalwari system and Ryotwari system existed in India.
• The land tenants and landless labourers used to cultivate land under these systems.
• Under these systems, the landlords used to forcibly take most of the produced crops from the labourers or tenants as rent. As a result, the farmers had no motivation to increase production.
• So, neither individual productivity nor national productivity increased.

2. Agriculture finance:

• Majority of Indian farmers are poor. They take finance to buy fertilizer, seeds, pesticides, etc.
• After independence, private money lenders were one of the easiest and major sources of obtaining agricultural finance. But, these lenders used to charge very heavy rate of interest on the money lent.
• As per a source, In 1951, about 71.6% agriculture finance business was controlled by money lenders.
  This problem was somewhat solved when the government established nationalized banks, regional rural banks in 1975 and National Bank for Agriculture and Rural Development (NABARD) in 1982.
• Due to all these efforts only 27% finance remained in the hands of money lenders and remaining was taken care by agriculture credit institutes.

3. Lack of agriculture marketing:

• Infrastructural facilities such as proper roads and bridges are not well developed in remote Indian villages. So, produce of these villages cannot reach the agricultural markets easily.
• In any case, the majority of the profit goes in the hands of agents, traders and hoarders and not the farmers. The local money lenders and brokers force the indebted farmers to self their crops at cheap rates before they grow fully.
• Moreover, farmers are illiterate and ignorant about knowledge of market, market rates, selling procedure, etc.

4. Rural social structure:

• Indian farmers are fatalist and possess least information about the government policies, framework, benefits, market, etc.
• Indian rural society is bound with old traditions and orthodox structure.
• These people believe that God has given them life full of problems and so they have to live with it.
• So, they do minimal farming and do not have any motivation to increase cultivation and income.

(II) Technology factors:

• In India, majority of the farming is still done with old traditional technology.
• Obsolete and worn out equipment, old ideologies, lesser mechanization, etc. all reduces agricultural productivity.
• Farmers also use traditional seeds instead of modern hybrid seeds which can give higher productivity.
• Many farmers use traditional manure such as cow dung instead of chemical fertilizers. This also reduces the productivity.
• Indian farmers do not use pesticides in sufficient quantity. As a result, the crops catch disease and the productivity suffers.

(III) Other factors:

1. Population pressure:

• Our large population puts high pressure on the agriculture sector.
• Very high employment in agriculture is a proof of the pressure that population puts on agriculture.
• At the time of independence, 72% population was engaged in agriculture. This reduced to 58% in 2001-02 and 49% in 2013-14.
• As per these figures, the burden on population for employment has reduced considerably but still it is quite high compared to other sectors.

2. Lack of economic planning:

• India gave greater emphasis on agriculture during the first five year plan. But, second five year plan onwards, India started focusing on industries rather than agriculture.
• India did not put same efforts, time and money in agriculture sector as it did in industries. In other words, the economic planning ignored agriculture. Hence, agriculture suffered tremendously.

Agriculture is a main occupation and very important pillar of Indian economy. Therefore it is essential to increase agricultural productivity.

• If agricultural productivity increases then income of rural economy will increase which will force the development of industry and service sector.
• To increase productivity of agriculture following measures should be taken:

1. Industrial Measures:

Institutional measures would be favourable for economic progress of agriculture. They are as follows:

1. Land Related Reforms: Because of law to abolish Zamindari system to protect tillers and to control rent exploitation of farmers will stop and they may have big share of their crop, that may increase agriculture productivity.

2. Availability of Institutional Credit: For agriculture sector, National Bank for Agriculture and Rural Development (NABARD) was set up in India in 1982.

• To provide cheap and enough credit to Indian farmers, Regional Rural Banks (RRBs) and Land Development Banks (LDBs) were developed.

3. Improvement in Structure of Agriculture Marketing: To overcome the shortcomings of the system of agriculture marketing following steps have been taken:

• Regulated market,
• System of AGMARK,
• Starting National Warehouse Corporation and State Warehousing Corporation,
• Providing information about prices of agriculture produce and
• Fixation of bottom price.

4. Agriculture Research: NABARD does many researches on agriculture and gives knowledge and training to farmers about it. So, farmers do not cultivate only through traditional techniques but they start doing market oriented production and can earn more income.

2. Technological Measures:

Technological measures are more easy and fast to give benefits. So they are more important to increase agriculture productivity. They are as follows:

1. Improved Seeds: Improved seeds developed by scientific inventions give more production of crops. Extraordinary rise in food grains production due to improved seeds is known as ‘Seed Revolution.’

2. Use of Chemical based Fertilisers:

Use of chemical based fertilisers are very benificial to increase agriculture productivity. In India chemical based fertilisers like nitrogen, phosphate, potash, etc. are produced by public sector enterprises. Even such fertilisers are imported and distributed at subsidy rates.

3. Increase in Irrigation Facilities:

In India to expand the service of irrigation ‘Development Programme of Irrigation Sector’ and ‘Infrastructural Development Fund’ are set up.

4. Use of Machines:

Instead of using traditional equipments or machines for cultivation if tractor, trailer, thresher,
electric pump set, oil engine, pesticide sprinkler pump, etc. are used then these are very useful to have more than one crop a year which increases productivity.

To prevent crop from various diseases and to protect plants from insects, pesticides are very useful which will give high productivity.

5. Soil Testing:

By soil testing it can be known that whether land is favourable to crop or not. Such tests help to remove deficiency of land. This way land can be made favourable to crop and it become capable to give high productivity.

3. Other Factors:

• To educate farmers about new technology of cultivation
• To awaken the farmers for bad customs of rural areas
• To plan agriculture fair
• To include the farmers in agriculture allied activities like cattle rearing, poultry farming, food processing, jungle and others and
• To expand small-scale industries in rural areas.

In reality agriculture productivity is measured in terms of productivity per hectare or income per hectare. Responsible factors for low productivity of agriculture are as follows:

1. Institutional Factors:

• Physical, social, economic and legal factors are institutional factors. Such factors are negative in India. Therefore, low productivity of agriculture is being seen.
• Revenue collection systems, agriculture finance, agriculture marketing system, land ownership system, rural social structure, etc. are also institutional factors. As these factors remain negative, agriculture productivity has also remained low.

2. Technological Factors: In India use of old traditional equipments, ideologies, techniques, traditional seeds, cow dungs as manure, less proportion of pesticides in agriculture are technological factors, which give low productivity of agriculture.

3. Other Factors:

• Pressure of Population: Total production of agriculture is being distributed among big mass of population, which shows low productivity of labour.
• Lack of Economic Planning: India’s economic planning centered around Industrie’s. Hence, agriculture sector has irregular and slow rate of development. Therefore, low productivity of agriculture is seen.

Present Situation of Agriculture Sector in India:

• India has been an agriculture oriented . economy before the british rule, during the ‘ british rule and even after the british rule.
• During planning period industrialisation is focused upon, but presently agriculture sector provides much more employment, production and export income as compared to past.

1. Contribution in National Income:

• According to economic survey 2011-12, contribution- of agriculture sector in national income (GDP) was 53.1% in 1950-51 and had reduced up to 13.9% in 2011-12 due to industrialisation since 1956.
• The contribution of agriculture in total revenue (National income) as coihpared to the other sectors of economy is the least.

2. Employment: At the time of independence 72 % population was employed in agriculture and allied agricultural activities.

• After independence development of industries and service sector has become faster and employment dependency on agriculture has been reduced.
• Agriculture sector provided 58 % employment in 2001 -02 which has been reduced to 49% in 2013-14.

3. Export Income: Indian agriculture sector helps the country to earn foreign exchange by exporting agricultural products.

• During independence period agriculture sector contributed 70% of India’s total export earnings.
• Because of development of industries and service sector the contribution of agriculture sector in the total export earnings was reduced to 14.2 % in the year 2013-14.

4. Living Standard: Agriculture has continu¬ously improved life of people in India by providing enough food grains.

• In India average food grain availability was 395 grams per head per day in 1951. Which increased to 511 grams in the year 2013.
• Agriculture sector is satisfying requirements of people in enough quantity. Due to this average life span of people and living standard has been increased.

5. Growth of Agriculture Production: Total production of agriculture in India has increased.

• Because of rise of cultivated land and per hectare productivity, in India production of food grains increased to 264.4 metric tons in 2013-14, which is about 2.5 times rise than the production in 1951.
• As compared to 1951 the production of sugar cane, pulses, cotton, oil seeds show tremendous rise in 2013-14.

6. Base for Industrial Development:

• Agriculture is a base for industrial sector in India. It provides raw material to industrial sector to attain possible development.
• 69 % population of India live in rural areas whose main source of income is from agriculture. Therefore the main market for the demand of industrial product is rural areas.

Agricultural Nation:
India is known as agricultural nation because of some important matters like agriculture production, employment, export, income, etc. of Indian economy are highly dependent on agriculture sector.

Backbone of the Economy: Indian economy is dependent on agriculture for various aspects. If Indian agriculture sector fails to produce enough quantity, then industries using agriculture products as raw material also fails to produce sufficient. Therefore goods become costlier and influence the life of people.

• As per 2011 Census, 68.8% of India’s population live in rural areas. If agricultural production fails then their income is negatively affected and they have to reduce demand of industrial products.
• Thus, on one side industries are not getting enough material and on the other side industrial products are not much demanded. Therefore, it can be said that agricultural failure provide failure to industrial sector and hence service sector also faces fall in its demand and income.
• That is why agriculture sector is known as the backbone of the economy of a nation.

The government took the following steps to increase the agricultural productivity:

(I) Institutional measures:

The government has taken several institutional measures under its five year plans. These are:

1. Land reforms:

• Government framed laws to abolish Zamindari system. This has helped to protect tillers from getting exploited and to help them obtain ownership of land.
• These reforms help farmers to keep a major share of the crops with themselves for selling purpose unlike in the Zamindari system.
• As a result, the farmers have become motivated to increase the agricultural productivity and overall production.

2. Availability of institutional credit:

• India set-up nationalized banks so that it could provide credit and other monetary facilities to the farmers.
• In 1982, India established the ‘National Bank for Agriculture and Rural Development (NABARD)’, under the RBI with the sole aim of financing agriculture sector.
• Regional Rural Banks (RRBs) and Land Development Banks (LDBs) were also set-up under the NABARD,
• All these institutions provide cheap credit that to in sufficient amount to Indian farmers. This has helped to boost the agricultural productivity.

3. Improvement m structure of agriculture marketing:

The government has taken following steps to improve the structure of agriculture marketing:

• Regulated markets have been set up.
• ‘AGMARK (AGMARK = Agriculture Marketing)’ has been introduced to classify the agriculture produce on the basis of its quality.
• National warehouse corporation and state warehouse corporation have been set-up to store agricultural produce of farmers.
• System has been developed so that the farmer can be provided information about prices of agriculture produce.
• To protect farmer from changes that take place in market prices, the government announces bottom prices below which the produce cannot be sold.

4. Agriculture research:

• Indian farmers are mostly uneducated and do not have sufficient capital to conduct experiments and research in their fields. So, NABARD has taken up this task.
• Although NABARD is an apex financial institution for providing credit to agricultural sector, it also undertakes several programmes and events and funds researches for agriculture and rural development.
• NABARD does .many researches and based on the outcomes it provides knowledge and training to the farmers to increase and improve their crops.
• This helps farmer to leave their traditional ways of farming and adopt new scientific methods. The farmers thus earn higher income and are also able to fulfill the rising demand of the nation.
• Moreover, to make farmers a part of agricultural reforms, collective rural development programs, Panchayati Raj, Integrated Rural Development Programs, Jandhan Yojana, etc. have been started. By becoming a part of these programmes the farmers are able to modernize the agriculture and increase their agricultural productivity.

(II) Technological measures:

Institutional measures require major structural changes as compared to technological measures. So, it is easier to implement technological measures.

Following technical measures have been taken by the government:

1. Improved seeds:

• Seeds developed with the help of scientific research are called improved seeds (hybrid seeds}.
• These scientifically developed seeds give more and faster production and also protect the crops against diseases.
• India has been able to tremendously increase its production using these seeds.
• Due to this extraordinary growth in food grains, the ‘Agriculture Revolution’ is also known as ‘Seed Revolution’.
• National Agriculture Research Committee, National Seed Corporation and agripulture universities gave utmost importance and top priority for developing hybrid seeds as a means to increase agriculture productivity.

2. Use of chemical fertilizers:

• Use of chemical fertilizer increased with the use of improved seeds in India.
• Chemical based fertilizers give required nutrition to plants and help them to grow fast. So, chemical fertilizers have proved highly beneficial for increasing agriculture productivity.
• Nitrogen, phosphate, potash and other chemicals used as per crop.
• India has also set-up public sector units such as IFFCO to produce chemical fertilizers.
• The government also imports and distributes fertilizers at subsidized rates.

3. Increase in irrigation facility:

• Rain is the main source of irrigation for Indian agriculture. However, rains are quite uncertain in India and so agriculture production and productivity gets affeoted badly.
• A systematic and well ‘established irrigation facility is the key to solve this problem.
• A well-established irrigation system can help to regularize the production and also increase the productivity. Hence, government has undertaken various developmental programmes in irrigation sector. The government has also set-up ‘Infrastructural development fund’ for this purpose.
• NABARD has been assigned the responsibility to finish the incomplete irrigation projects and to develop other irrigational facilities.

4. Use of machines:

• Government has encouraged use of various types of machines which can increase the speed of agriculture production.
• With development of engineering and automobile sector, equipment and vehicles such as tractor, trailer, thresher, electric pump set, oil engines, pesticides sprinkler pump, etc. have been developed. These machines are extremely helpful for raising more than one crop a year, saving the crops, increasing the production speed and increasing productivity.

5. Pesticides:

• The government encourages using pesticides to protect the crops from various diseases.
• The use of pesticides helps in reducing the loss and wastage that occurs due to diseased crops.
• Their use thus helps in improving agricultural productivity. ‘.

6. Soil testing:

• By testing the soil, the farmer can find out about the properties of the soil and weather the soil is suitable for a particular crop or not. It also helps in knowing which minerals does the soil lack and which type of fertilizer will it need.
• Thus soil testing is an effective means to improve and maintain productivity. Government helps the farmers in getting their soil tested. It also guides them about the care they will have to take to retain the, soil quality.

(III) Other measures:

• To improve agriculture productivity farmers should be educated. They should be well informed about the new technologies in agriculture.
• They should also be made aware about the evil customs of the villages so that they become optimistic about agriculture.
• Agricultural fairs and events should be arranged to guide farmers about increasing agriculture productivity,
• Farmers should be made aware about agriculture allied activities such as cattle rearing, poultry farming, food processing, jungle farming, etc. so that they do not remain solely dependent on agriculture for livelihood.
• Small scale agro industries should be expanded to rural areas so that such industries can become a support to agriculture.

Agriculture sector acts as a lifeline of India and thus, is considered to be the backbone of Indian economy.

Agriculture Oriented Economy: During planning period India has made efforts for industrialisation but even today India is known as an agriculture oriented economy and the development rate of economy is dependent on the growth of agriculture sector.

• Although India is an agriculture based country, it has several agriculture related problems.
• The productivity of agriculture per hectare is called agricultural productivity.

We can also know about agricultural productivity by finding the income earned per hectare of agricultural produce.

Reasons for low agriculture productivity can be classified into three major types:

(I) Institutional factors,
(II) Technological factors and
(III) Other factors

(I) Institutional factors for low agricultural productivity:

• The physical, social, economic and legal factors that affect agriculture are known as institutional factors.
• These factors are not in much favour of farmers. As a result, the agricultural development and productivity is low in India.
• The institutional factors remained negative for farming and hence agriculture productivity remained low. These factors are discussed below.

1. Land Revenue Collection Systems:

• Even after India became independent, three Land Revenue Collection Systems namely, Zamindari system, Mahalwari system and Ryotwari system existed in India.
• The land tenants and landless labourers used to cultivate land under these systems.
• Under these systems, the landlords used to forcibly take most of the produced crops from the labourers or tenants as rent. As a result, the farmers had no motivation to increase production.
• So, neither individual productivity nor national productivity increased.

2. Agriculture finance:

• Majority of Indian farmers are poor. They take finance to buy fertilizer, seeds, pesticides, etc.
• After independence, private money lenders were one of the easiest and major sources of obtaining agricultural finance. But, these lenders used to charge very heavy rate of interest on the money lent.
• As per a source, In 1951, about 71.6% agriculture finance business was controlled by money lenders.
  This problem was somewhat solved when the government established nationalized banks, regional rural banks in 1975 and National Bank for Agriculture and Rural Development (NABARD) in 1982.
• Due to all these efforts only 27% finance remained in the hands of money lenders and remaining was taken care by agriculture credit institutes.

3. Lack of agriculture marketing:

• Infrastructural facilities such as proper roads and bridges are not well developed in remote Indian villages. So, produce of these villages cannot reach the agricultural markets easily.
• In any case, the majority of the profit goes in the hands of agents, traders and hoarders and not the farmers. The local money lenders and brokers force the indebted farmers to self their crops at cheap rates before they grow fully.
• Moreover, farmers are illiterate and ignorant about knowledge of market, market rates, selling procedure, etc.

4. Rural social structure:

• Indian farmers are fatalist and possess least information about the government policies, framework, benefits, market, etc.
• Indian rural society is bound with old traditions and orthodox structure.
• These people believe that God has given them life full of problems and so they have to live with it.
• So, they do minimal farming and do not have any motivation to increase cultivation and income.

(II) Technology factors:

• In India, majority of the farming is still done with old traditional technology.
• Obsolete and worn out equipment, old ideologies, lesser mechanization, etc. all reduces agricultural productivity.
• Farmers also use traditional seeds instead of modern hybrid seeds which can give higher productivity.
• Many farmers use traditional manure such as cow dung instead of chemical fertilizers. This also reduces the productivity.
• Indian farmers do not use pesticides in sufficient quantity. As a result, the crops catch disease and the productivity suffers.

(III) Other factors:

1. Population pressure:

• Our large population puts high pressure on the agriculture sector.
• Very high employment in agriculture is a proof of the pressure that population puts on agriculture.
• At the time of independence, 72% population was engaged in agriculture. This reduced to 58% in 2001-02 and 49% in 2013-14.
• As per these figures, the burden on population for employment has reduced considerably but still it is quite high compared to other sectors.

2. Lack of economic planning:

• India gave greater emphasis on agriculture during the first five year plan. But, second five year plan onwards, India started focusing on industries rather than agriculture.
• India did not put same efforts, time and money in agriculture sector as it did in industries. In other words, the economic planning ignored agriculture. Hence, agriculture suffered tremendously.

• The productivity of agriculture per hectare is called agricultural productivity. We can also know about agricultural productivity by finding the income earned per hectare of agricultural produce.
• Compared to the world productivity, India’s agriculture productivity is quite low.

Reasons for low agriculture productivity cap be classified into three major types:

(I) Institutional factors,
(II) Technological factors and
(III) Other factors

The agriculture markets are not able to connect with each other due to lack of proper infrastructural facilities in India.

Export income:

• We export our agricultural products to various countries. This earns us foreign exchange.
• The foreign exchange earned helps to buy such goods which India does not produce but needs for its economic development.

Employment generation:

• Although the contribution of agriculture is less in GDP, it provides maximum employment to people compared to other sectors.
• At the time of independence, 72% population was engaged in agriculture and allied agricultural activities. After independence, industry and service sectors developed quite fast and so people’s dependency on agriculture for employment reduced.
• For example, in the year 2001-02, agriculture provided employment to 58% people which then reduced to 49% in the year 2014-15.

Contribution of agriculture in national income:

• Agricultural sector is called primary sector and so income earned from this sector is also knQWn as income from primary sector.
• Primary sector includes agriculture crops, poultry farming, fisheries, cattle rearing, etc.
• As per economic survey of 2011 -12, in 1950-51, the contribution of agriculture sector in national income (GDP) was 53.1%.
• This has constantly decreased because of more focus on industries and less on agriculture.
• In the year 2011-12 it decreased to as low as 13.9% (at constant prices).
• Fast rise of other sectors namely, industry and service the is one of the key reasons for reduced contribution of agriculture to such a great extent.

• India is densely and largely populated country. So, agricultural products are used extensively to feed the large population as well as raw materials in agro based industries.
• Moreover, 68.8% i.e. almost 70% of Indian population still resides in rural areas. This population is mainly dependent on agriculture. When these people cannot produce enough their income levels drop down drastically.
• So, they reduce their consumption i.e. they do not demand industrial products.
• The reduced agricultural production hits the industry in two ways
  1. First industries do not get enough raw material for production and
  2. The demand of industrial production reduces.
• Hence, we can say that failure of agricultural sector leads to failure of industrial sector.

Points for answer of other two questions:

• Since service sector cannot alone progress when the other two sectors fail, even the service sector will fall due to failure of agriculture.
• Hence, agriculture is backbone of our economy.

Difference between food crop and cash crop.

Economic factors that play important role in multiple cropping and crop rotation are:

1. Maximization of price and income
2. Availability of agricultural equipment
3. Size of farm
4. Crop insurance
5. Tenure (Tenure avail from landlord), etc.

• Compared to other nations India uses very less amount of pesticides per hectare. -» As per the economic survey of 2015-16, India uses 0.5 kg pesticide per hectare. On the other hand, countries like America uses 7.0 kg, Europe uses 2.5 kg, Japan uses 12 kg and Korea uses 6.6 kg pesticides.
• Less use of pesticides is the reason for 15 to 25% spoilage of crops in India. -> Indian farmers are not aware about proper use of pesticides. Some farmers put very less pesticides and some very large quantities. Also, they use poor quality of pesticides which affect the crop health and productivity.
• Improper and unregulated use of pesticides in India is posing great danger to health of people as well as danger to environment.

Correct option is (B) Agriculture sector

Difference between Institutional changes and technological changes.

To tackle this problem, the government has appointed ‘Central Insecticide Board and Registration Committee (CIBRC)’ to provide information to the Indian farmers about various types of pesticides and their level of poison. -» CIBRS also publishes different booklets to guide farmers. These booklets explain about quantity of pesticides, time of usage and level of poison.

Correct option is (A) 22.3%

Correct option is (D) Brain

Correct option is (A) Pulses

Cotton, jute, groundnut, oil seeds, sugarcane, etc.

Correct option is (B) 1966

Correct option is (D) 1982

Seven districts were included for project in the year 1960-61 for use of new technology in agriculture.

Fast technological growth attained by agriculture with the help of irrigation, fertilizer, seeds, pesticides and machines is known as Green revolution. In other words, Green revolution means, in short period when speedy growth is achieved by agriculture with the help of technological advancement.

Correct option is (A) Panchayati raj

Correct option is (D) Money lenders

Correct option is (A) Barter system

Correct option is (C) 1982

Correct option is (D) AGMARK

Correct option is (B) RBI

Correct option is (D) 1954

Correct option is (D) Modern seeds

Correct option is (B) 5

Correct option is (B) 1956

Correct option is (C) Potassium

some of the modern machineries used in agriculture sector.

Tractor, thresher, electric pump set, oil , engines, pesticide sprinkler pumps, etc.