Agribusiness and Rural Poverty Alleviation

1) Kumar, N. 2) Neopane, A.

Abstract:

“India lives in its villages”-this axiom is as true today as it was when the country
became independent 63 years ago. Statistically, 70% of India’s 1.17 billion population lives in
rural areas with 58% of labour force engaged in agriculture. According to latest NSSO data for
the year 2004-05 poverty level in India stood at 21.8%. In urban areas it was 21.7%while in rural
areas it was 27.1% .Meanwhile, agriculture and related activities in rural India contributes to
16.6% (July,2009)in G.D.P whereas during first five year plan it was 46.3%. All these data give
us a clear view that condition of rural community is worsening day by day. Only traditional
agriculture can’t improve their standard of living and is unable to mitigate their poverty level.
So, it is demand of time to identify high income generating avenues for farmers. In this context,
agribusiness has emerged as one of the most viable options having immense potential to serve
this purpose. Thus, a shift from “agriculture” to “agribusiness” is necessary to revitalize Indian
agriculture.

This paper focuses on emerging areas for agribusiness viz. production, processing
(value addition), infrastructure, trade and marketing. Other associated issues like appropriate
technologies, labour productivity, credit, co-operation and extension services in relation to rural
poverty alleviation are also discussed. The paper also examines how under liberalization and
globalization, agribusiness has opened new vistas for growth and development of the rural
economy as well as issues and challenges before agribusiness with respect to rural poverty
alleviation.

Keywords: Agribusiness, Poverty alleviation, Value addition, Rural development

1,and 2- are presently studying in B.Sc. (Ag),Part-IV, I.A.S , B.H.U,Varanasi-221005