[Dec 2007, Volume 4 Quarterly Issue] Pdf File size - The IIPM Think ...

MORE MARKETS, LESS GOVERNMENT
criticisms loaded with adverse results of
reforms undermining human face compelled
planners and policy makers to
incorporate such policies that may appear
addressing the crises and concerns
of marginalisation. Hence the Eleventh
Five Year Plan has been claimed to focus
on faster inclusive growth (GOI, 2006)
to address the issues of exclusions. This
exercise is an attempt to underline challenges
on the way to achieve the targets
of inclusive growth. It is not possible to
do justice with all the factors in one exercise
and therefore, this exercise is intended
to analyse a few important dimensions
of agrarian challenges towards
achieving the objectives of inclusive
growth. This paper is divided in four
parts. Part one examines growth performance
of agricultural economy. Part two
deals with indebtedness and credit markets
and institutions. Part three concentrates
on farmers despair and part four
consolidates discussion and reflects on
possible imperatives and options in
this regard.
1. Decelerating Growth
Share of the agricultural sector declined
from 59.2 percent of Gross Domestic
Product (GDP) in 1950-51 to 27.36 percent
in 1999-2000, This figure has further
fallen to 18.5 percent in 2006-07
(Economic Survey, GOI, 2007:1). Contribution
of agriculture to GDP has been
declining not only because the other sectors
are growing fast but also because of
continued neglect of this sector leading
to decline in rural income. However,
over 56.5 percent of the workforce and
63.9 percent of the rural workforce – 39.8
percent self employed and 24.1 percent
agricultural labour are still directly dependent
on this sector for their livelihood
(National Sample Survey Organisation
(NSSO), 61 st Round, 2006:27).
Out of self-employed workforce majority
of holdings are of marginal and small
farmers. On an average, this sector grew
at the rate of 2.54 percent during 1950-
51 to 2003-04. During pre-Green Revolution
(1950-51 to 1964-65) agriculture
grew by 2.54 percent. Interestingly average
growth rate in post -Green Revolution
period until 1980 was only 2.05 percent,
which was slightly lower than
earlier period. Growth rate of agriculture
in 1980s was the highest at 3.08 percent
and later in last one decade (1993-
94 to 2003-04) this sector suffered
deceleration and grew only by 2.38 percent
(Bhalla, 2005: p.2). During Ninth
and Tenth Five Year Plan, agriculture
grew only by 2 and 1.7 percent respectively
(GOI, 2006:4).
In pre–Green Revolution period
growth rates of all principal crops, in
terms of their area production and yield
were 1.58, 3.15, 1.21 percent, food grains
1.35, 2.82, 1.36 percent and non food
grains 2.44, 3.74, 0.89 percent respectively.
Post-Green Revolution data of
growth rates suggest that area and production
of all principal crops had lower
rate of growth but yield registered higher
rate of growth than that of pre-Green
Revolution period. So far non-food
grains are concerned, growth rates of
area and production witnessed deceleration.
However productivity registered
increasing trend from 0.89 percent to
1.59 percent. In case of food grains area
declined, production registered lower
rate of growth and yield rate increased.
Statisticall, the comparison of 1980s
with 1990s suggests that, in case of all
principal crops, cultivable area increased
in 1990s and production and productivity
parameters registered deceleration.
In the case of food grains, area declined,
production and productivity encountered
lower rate of growth than 1980s.
So far non-food grains are concerned
area, production and productivity indicated
an increasing trend with deceleration,
i.e., lower rate of growth than
1980s. However there was an evidence
of recovery in terms of area and productivity
of food grains, and area production
and productivity in non-food grains
during 2000-01 to 2006-07. As a result,
there was a sign of recovery in area production
and productivity of all principal
crops. However, in terms of the growth
According to NSSO data, over 56.5% of the workforce
and 63.9% of the rural workforce – 39.8% self employed
and 24.1% agricultural labour are still directly dependent
on agriculture sector for their livelihood
rates of production it was still lower than
the growth rates of the production of
1980s (GOI, 2006a).
Expansion of irrigation network, use
of modern technology - HYV seeds,
chemical fertilizer, pesticides combined
- cropping pattern changed remarkably.
Cropping intensity also improved to the
level of 134 percent. But percentage coverage
of food grains did not change significantly
until 1980-81. Coverage of
total cereals hardly changed and remained
at the level of about 75 percent.
THE INDIA ECONOMY REVIEW
53