1. Saturated foodgrain production
Although the food grain production has risen by more than six times since independence. But, in the last 5 years (2018-2023) appeared to have plateaued around 315 million tonnes. This calls for increase in yield through effective strategies of foodgrain production since India’s population is expected to rise to 1.6 billion by 2060 before getting stabilised.
2. Outdated techniques of farming
Use of conventional tools, lesser reliance of farm mechanisation has led to yield stagnation. On the other hand, overuse of subsidised inputs like fertilisers and pesticides have reduced the natural fertility of soil.
3. Inadequate gross capital formation
Because of higher revenue expenditure in agriculture mainly through subsidies, the fiscal space for increased capital investments for rural electrification, micro irrigation systems, cold storage, market etc gets squeezed. Post 1991, the Gross Capital Formation (GCF) as a proportion of total GCF has declined from 10% in 1991 to 7% by 2022. This has reduced the growth of agriculture sector overall which has failed to maintain a consistent growth rate of 4% annually. Moreover, the success of surplus labour from agriculture depends upon how public investments in agriculture yield increased income as this would push surplus farm labour towards industries as modernisation of agriculture will ensure sustainable farm income.
4. Over dependence on Monsoon
Indian agriculture has rightly been called as ‘gamble of monsoon’. This is because despite more than 75 years of independence the total irrigated land as a proportion of gross cropped area has been about only 52 percent. Thus, 48 percent of total cultivable area still dependent upon monsoon for water.
5. Large proportion of small and marginal farmers
Around 86 percent of farmers in India are small and marginal who hold about 47 percent of the total land area under cultivation. It is also to be noted that the proportion of these farmers have increased over time which shows the division of land to an uneconomical level where holdings are too small to provide the farm household with sufficient return and incomes.
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