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Why is Agriculture sector in distress in India?

The agriculture sector is engaging almost 51% population directly or indirectly and contributing only 17% of GD. However over a certain period of time agriculture production is on the rise after the implementation of Government Schemes such as PM-Fasal Beema Yojana, Krishi Sichai yojana, PM-Krishan yojana, Kisan Credit Card Yojana etc.

Agrarian distress:–

  • Small landholding.
  • Non-institutional credit
  • Debt trap.
  • Lack of irrigation facilities.
  • Crop failure.
  • MSP on limited crops.
  • Procurement at a very low price.
  • Supply chain inefficiency
  • infrastructure lacking,
  • Lack of warehouse.

see all ROLE AND IMPACT OF FOOD AND AGRICULTURE ORGANIZATION (FAO)

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Despite the increment in productivity of farms. The agrarian distress is very served. It may be attributed due to –

  • Small land holding – a large portion of the population is having land below 2 hectares.
  • marginal, small, women farmers, tenant farmers, agricultural labours are excluded under most of government Scheme, for example; PM KTSAN Scheme
  • for farmers having land below 2 hectares.
  • The high cost of agricultural input;
  • irrigation cost
  • high-cost seeds
  • Natural calamities \ Disasters: – One of the major reason for farmers suicide forex.–Drought in Maharashtra.
  • Non Institutional credit:- Farmers kept under money lenders grip of high-interest rates;
  • debt trap

   For example- According to NSSO more than 50% small agricultural households are under indebtedness.

  • Procurement of crop at MSP price is very low;
  • Only limited crop are included.
  • Lack of technology – traditional equipment’s.
  • Lack of agricultural education –
  • High use of fertilizers.
  • unaware of the supply chain.
  • Lack of infrastructure for storage of farm production.

Way Forward:

  • Guarantee access to farmers to institutional credit system at low-interest rates.
  • Agriculture land should be consolidated.
  • Research and development on agriculture as per India’s requirement.
  • Digitalization of the market. For example ENAM.
  • More crops should include under MSP.
  • Will lead to crop diversification.
  • Farmer’s distress relief commission should be established.

Hence, a multi-pronged strategy is the need of the hour to tackle severe agrarian distress and making the dream of farmer’s income double upto 2020 come true.

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