Question

prepare a note on the crises of agricultural sector
​

Answer 1

Agricultue in India is undergoing a structural change leading to a crisis situation. The rate of growth of agricultural output is gradually declining in the recent years. The relative contribution of agriculture to the GDP has been declining over time steadily. The performance of agriculture by crop categories also clearly indicates the slowing down process of agriculture in India. The onset of deceleration in agriculture began from early nineties and it became sharp from the late nineties. The trends in the area, input use, capital stock and technology also reflect the agricultural downfall and the farmer’s response accordingly. It is alarming that India is moving towards a point of no return, from being a self-reliant nation of food surplus to a net importer of food. All these trends indicate that the agricultural sector in India is facing a crisis today. It is argued that the root cause of the crisis was that agriculture is no more a profitable economic activity when compared to other enterprises. It means that the income derived from these activities is not sufficient enough to meet the expenditure of the cultivators. And therefore, unless agriculture is made a profitable enterprise, the present crisis cannot be solved.