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Agriculture In India Since Independence Lesson-3 Presented By: Roman Saini
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In This Lesson Agriculture In India Since Independence Average Size of Holdings across States and Size Classes Shift in Consumption Pattern Projected Demand of Food Commodities Agriculture-Poverty Linkages Farm Income, Agrarian Distress and Farm Poverty
Agriculture In India Since Independence Average Size of Holdings across States and Size Classes .Between 2000-01 and 2010-11, the average size of holdings has declined from 1.3 ha to 1.2 ha. However, among different size classes of farmers, the average size of holdings have shown an increase except in case of small farmers, where it has remained constant in the period. A sizeable increase in case of marginal, small and semi-medium farms was noted in case of Odisha, where all farms have generally shown an increase. Average land holding size under the large farm category was quite high in few States/UTs like West Bengal, Assam, Tripura, Kerala and A & N Islands, in both the periods as compared to other states, owing to the large size of institutional holdings in few districts of these states.
Agriculture In India Since Independence A study by Chand et al., (2011) indicates that lower the size of holding, higher was the use of inputs, crop intensity and coverage under HYVs, reflecting technology. .Obviously, the greater use of these factors would result in higher productivity, and those farm categories with the higher value of these factors are also expected to realise higher productivity. The results indicated that land productivity was inversely related to farm size class. This study concluded that agriculture productivity in marginal and smallholdings was found to be much higher than the average productivity for all size categories, however, per capita output is low on smallholdings despite higher productivity due to lower per capita availability of land.
Agriculture In India Since Independence Shift in Consumption Pattern .Among consumers, an increasing trend towards non-food expenditure is clearly visible and one would expect the trend to continue in near future. Around 15 percent of household expenditure budget has shifted towards non-food expenditure Especially, expenditure on durable goods has more than doubled, from 2.7 per cent in 1993-94 to 6.3 per cent in 2011-12. While expenditure on fuel, light and other items have also registered consistent and marginal improvements, doubling expenditure on durable goods can be appreciated as it reflects household welfare
Agriculture In India Since Independence More than 9 per cent increase in expenditure on other goods and services also indicates increasing preference towards non-food items than the food items. By 2011-12, while difference in food and non-food expenditure shares was roughly equal in rural India, it was more than 20 per cent in urban India. Among food groups, expenses on cereals have halved in both rural and urban India, from 24 to 12 per cent, and 14 to 7 per cent between 1993-94 and 2011-12. Over the past two decades, share of food in total expenditure (as explained by the monthly per capita expenditure, MPCE) has fallen in rural India, roughly from two-third to one-half, signalling a clear shift in expenditure behaviour. .
Agriculture In India Since Independence The physical consumption quantities display consistent decline in cereals in both rural and urban India, and the trend holds true for pulses as well. . Rather, rapid improvements in consumption of allied agricultural products is observed, especially in urban India. .Thus, a shift from consuming staple crops and pulses towards allied agricultural products is evident, in both physical as well as in value terms.
Agriculture In India Since Independence Projected Demand of Food Commodities Owing to the increasing population over the years, demand for food is naturally expected to increase in coming years Various studies have projected the demand of food grains under alternative assumptions of income growth, distribution of income and future dynamics of rural and urban populations. Substantial increase in the consumption of high-value food commodities like fruits, vegetables, milk, meat, fish and eggs have been projected. . It is encouraging to note that the outputs have outpaced the projections due to technological improvements and better logistics. .
Agriculture In India Since Independence Following a growth deceleration in post-reforms period in India, the sector has recovered its momentum since mid-2000s. . Output growth in agriculture shows notable improvement since 2004-05 than the earlier period, from 2.4 per cent growth rate during the pre-reforms period to 3.4 percent growth between 2004-05 and 2011-12. . Rural poverty estimates of pre and post-reforms period help us to understand the role of agriculture growth in rural poverty incidences. During the pre-reforms period, when growth in agriculture was relatively slow, rate of rural poverty reduction has been less than 1 per cent a year. .
Agriculture In India Since Independence Farm Income, Agrarian Distress and Farm Poverty It is often felt that disparity between farm income and non-farm income is rising (Chand, 2008) and that those who work outside agriculture are progressing much faster than those who work in it. .According to Chand et al., (2015), a cultivator earned three times what a agricultural labourer earned in 1983-84 A non-agriculture worker earned three times the income earned by a farmer or his family members engaged in agriculture as their main economic activity. The disparity fell by 2011-12 when the income of a cultivator declined to 2.4 times the wage earnings of a labourer. .