MBA Education & Careers
Eco Fundas for you
Indian Agriculture:
Important Determinants
T
he Indian economy is made up of three
major sectors: Primary, Secondary, and
Tertiary. The Primary Sector comprises
agriculture and allied activities; the Secondary
Sector can also be called Manufacturing or
Industrial Sector, while the Tertiary Sector
represents the Services Sector.
Importance of Agricultur
riculturee
Agricultur
Agriculture, the backbone of the Indian economy,
plays a vital role in the overall economic and social
well-being of our country. It contributes nearly
20 per cent of India’s GDP while it engages nearly
64 per cent of the country’s total labour force.
India’s total food-grain production in 2007-08 was
227 million tonnes. Today we are self-sufficient
in food-grain production and the country has a
sense of food security.
However, agriculture in India is heavily dependent
on the Monsoon. It has often been said that
agriculture in India is a ‘gamble in Monsoon’. The
dependency is so high that the amount of
agricultural output is more or less decided by the
amount of rainfall.
Determinants in Agricultur
riculturee
Agricultur
Agricultural productivity is influenced by a
number of determinants like physical, institutional,
and technological factors. Physical Factors relate
to topography (surface features), climate, soil
conditions, etc. While Institutional Factors may
include credit extension, size of land holdings, and
social fabric in rural areas, Technological Factors
would refer to use of high yielding varieties of
seeds, pesticide usage, irrigation facilities, etc.
Physical FFactors
actors
Climate. As we have seen, what makes agriculture
a risky proposition is its heavy dependence on
climate. As climate and agriculture go hand in
hand, agricultural productivity would directly
depend upon the climatic conditions. The vagaries
of climate directly affect the output, crop pattern
and intensity, irrigation facilities, harvest, and
every other operational aspect of agriculture.
While rainfall is very important, an excess or a
deficiency of the same entails consequences of
their own (floods or droughts). Excessive rainfall
would lead to soil erosion, water logging, and
stunted growth. On the other hand, drought
conditions, arising out of scanty or inadequate
rainfall, would lead to soil drought, which destroys
crops because the amount of transpiration exceeds
the amount of moisture available in the soil.
Temperature is another major determinant of
agricultural productivity. This is because different
crop types require different temperatures -
maximum and minimum - during the many stages
of the crop cycle.
January 2009 31
MBA Education & Careers
ECO FUNDAS FOR YOU: INDIAN AGRICULTURE
India's foodgrain production in 2007-08 was 227.3 million tonnes,
the highest ever in its history
Here, we should also look at some other
climate-linked factors like amount of sunshine,
frosts (as also other forms of precipitation), and
air conditions. A combination of all these climatic
factors plays a crucial role in determining
agricultural output.
Soil. Among all physical factors, soil is probably
the single most important determinant of
agricultural productivity. Cropping patterns,
cropping intensity, and final output would, to a
large extent, depend on soil fertility. However, if
soil is not properly taken care of, then it could
lead to serious consequences like soil erosion, soil
alkanity, and salinity.
Physiography. India has immense geological
diversity ranging from the Himalayas in the north
to the Indo-Gangetic Plain to the Deccan Plateau
in peninsular India. We find alluvial plains in the
Indo-Gangetic Plain fed by the melting-snows of
the Himalayan river system. In the south, we find
varied physiographic factors (Karnataka Maidan,
Deccan Plateau), which give rise to different crop
varieties. This diversity of physiographic features
has led to diversity in agricultural cropping
patterns and practices. In addition to this, we find
slash and burn and other forms of agriculture
practices in mountainous terrain.
32 January 2009
Institutional FFactors
actors
These factors relate to social institutions, credit
extension, size of land holdings, land ownership,
tenancy rights, etc. These institutional factors play a
significant role as most agricultural activities take
place in rural areas. These factors also assume
considerable importance in the light of the fact that
these determine the cropping patterns, types of crops
sowed, as well as adoption of new technologies.
Technological FFactors
echnological actors
Technology plays a very important part in
generation of agricultural output. From the ancient
times to the present, man has employed various
technological tools, right from the wheel to
sophisticated machinery used in extensive
agriculture.
Technology not only helps overcome various
obstacles like environmental constraints, but also
helps improve efficiency thereby enhancing
productivity. While mechanisation of agriculture
does not help in small land holdings, it does come
in handy when it comes to operations on large
farm lands. Technology brings many advantages
like crop intensity, improved soil usage, water
management, and modern farm tools. ME &C