GSEB Class 12 Economics Notes Chapter 8 Agriculture Sector

This GSEB Class 12 Economics Notes Chapter 8 Agriculture Sector covers all the important topics and concepts as mentioned in the chapter.

Agriculture Sector Class 12 GSEB Notes

Important of Agriculture Sector:
Agricultural Nation:

India is known as agricultural nation because of some important matters like agriculture production, employment, export, income, etc. of Indian economy are highly dependent on agriculture sector.

Backbone of the Economy:
Indian economy is dependent on agriculture for various aspects. If Indian agriculture sector fails to produce enough quantity, then industries using agriculture products as raw material also fails to produce sufficient. Therefore goods become costlier and influence the life of people.

  • As per 2011 Census, 68.8% of India’s population live in rural areas. If agricultural production fails then their income is negatively affected and they have to reduce demand of industrial products.
  • Thus, on one side industries are not getting enough material and on the other side industrial products are not much demanded. Therefore, it can be said that agricultural failure provide failure to industrial sector and hence service sector also faces fall in its demand and income.
  • That is why agriculture sector is known as the backbone of the economy of a nation.

GSEB Class 12 Economics Notes Chapter 8 Agriculture Sector

Agriculture Oriented Economy:
During planning period India has made efforts for industrialisation but even today India is known as an agriculture oriented economy and the development rate of economy is dependent on the growth of agriculture sector.

Present Situation of Agriculture Sector in India:

  • India has been an agriculture oriented . economy before the british rule, during the ‘ british rule and even after the british rule.
  • During planning period industrialisation is focused upon, but presently agriculture sector provides much more employment, production and export income as compared to past.

1. Contribution in National Income:

  • According to economic survey 2011-12, contribution- of agriculture sector in national income (GDP) was 53.1% in 1950-51 and had reduced up to 13.9% in 2011-12 due to industrialisation since 1956.
  • The contribution of agriculture in total revenue (National income) as coihpared to the other sectors of economy is the least.

2. Employment: At the time of independence 72 % population was employed in agriculture and allied agricultural activities.

  • After independence development of industries and service sector has become faster and employment dependency on agriculture has been reduced.
  • Agriculture sector provided 58 % employment in 2001 -02 which has been reduced to 49% in 2013-14.

3. Export Income: Indian agriculture sector helps the country to earn foreign exchange by exporting agricultural products.

  • During independence period agriculture sector contributed 70% of India’s total export earnings.
  • Because of development of industries and service sector the contribution of agriculture sector in the total export earnings was reduced to 14.2 % in the year 2013-14.

4. Living Standard: Agriculture has continu¬ously improved life of people in India by providing enough food grains.

  • In India average food grain availability was 395 grams per head per day in 1951. Which increased to 511 grams in the year 2013.
  • Agriculture sector is satisfying requirements of people in enough quantity. Due to this average life span of people and living standard has been increased.

5. Growth of Agriculture Production: Total production of agriculture in India has increased.

  • Because of rise of cultivated land and per hectare productivity, in India production of food grains increased to 264.4 metric tons in 2013-14, which is about 2.5 times rise than the production in 1951.
  • As compared to 1951 the production of sugar cane, pulses, cotton, oil seeds show tremendous rise in 2013-14.

6. Base for Industrial Development:

  • Agriculture is a base for industrial sector in India. It provides raw material to industrial sector to attain possible development.
  • 69 % population of India live in rural areas whose main source of income is from agriculture. Therefore the main market for the demand of industrial product is rural areas.

Causes of Low Productivity in Agriculture:
In reality agriculture productivity is measured in terms of productivity per hectare or income per hectare. Responsible factors for low productivity of agriculture are as follows:
1. Institutional Factors:

  • Physical, social, economic and legal factors are institutional factors. Such factors are negative in India. Therefore, low productivity of agriculture is being seen.
  • Revenue collection systems, agriculture finance, agriculture marketing system, land ownership system, rural social structure, etc. are also institutional factors. As these factors remain negative, agriculture productivity has also remained low.

2. Technological Factors:
In India use of old traditional equipments, ideologies, techniques, traditional seeds, cow dungs as manure, less proportion of pesticides in agriculture are technological factors, which give low productivity of agriculture.

3. Other Factors:

  • Pressure of Population: Total production of agriculture is being distributed among big mass of population, which shows low productivity of labour.
  • Lack of Economic Planning: India’s economic planning centered around Industrie’s. Hence, agriculture sector has irregular and slow rate of development. Therefore, low productivity of agriculture is seen.

Measures to Increase Agriculture Productivity:
Agriculture is a main occupation and very important pillar of Indian economy. Therefore it is essential to increase agricultural productivity.

  • If agricultural productivity increases then income of rural economy will increase which will force the development of industry and service sector.
  • To increase productivity of agriculture following measures should be taken:

1. Industrial Measures:
Institutional measures would be favourable for economic progress of agriculture. They are as follows:
1. Land Related Reforms: Because of law to abolish Zamindari system to protect tillers and to control rent exploitation of farmers will stop and they may have big share of their crop, that may increase agriculture productivity.

2. Availability of Institutional Credit: For agriculture sector, National Bank for Agriculture and Rural Development (NABARD) was set up in India in 1982.
• To provide cheap and enough credit to Indian farmers, Regional Rural Banks (RRBs) and Land Development Banks (LDBs) were developed.

3. Improvement in Structure of Agriculture Marketing: To overcome the shortcomings of the system of agriculture marketing following steps have been taken:

  • Regulated market,
  • System of AGMARK,
  • Starting National Warehouse Corporation and State Warehousing Corporation,
  • Providing information about prices of agriculture produce and
  • Fixation of bottom price.

4. Agriculture Research:
NABARD does many researches on agriculture and gives knowledge and training to farmers about it. So, farmers do not cultivate only through traditional techniques but they start doing market oriented production and can earn more income.

GSEB Class 12 Economics Notes Chapter 8 Agriculture Sector

2. Technological Measures:
Technological measures are more easy and fast to give benefits. So they are more important to increase agriculture productivity. They are as follows:
1. Improved Seeds: Improved seeds developed by scientific inventions give more production of crops. Extraordinary rise in food grains production due to improved seeds is known as ‘Seed Revolution.’

2. Use of Chemical based Fertilisers:
Use of chemical based fertilisers are very benificial to increase agriculture productivity. In India chemical based fertilisers like nitrogen, phosphate, potash, etc. are produced by public sector enterprises. Even such fertilisers are imported and distributed at subsidy rates.

3. Increase in Irrigation Facilities:
In India to expand the service of irrigation ‘Development Programme of Irrigation Sector’ and ‘Infrastructural Development Fund’ are set up.

4. Use of Machines:
Instead of using traditional equipments or machines for cultivation if tractor, trailer, thresher,
electric pump set, oil engine, pesticide sprinkler pump, etc. are used then these are very useful to have more than one crop a year which increases productivity.

5. Pesticides:
To prevent crop from various diseases and to protect plants from insects, pesticides are very useful which will give high productivity.

6. Soil Testing:
By soil testing it can be known that whether land is favourable to crop or not. Such tests help to remove deficiency of land. This way land can be made favourable to crop and it become capable to give high productivity.

3. Other Factors:

  • To educate farmers about new technology of cultivation
  • To awaken the farmers for bad customs of rural areas
  • To plan agriculture fair
  • To include the farmers in agriculture allied activities like cattle rearing, poultry farming, food processing, jungle and others and
  • To expand small-scale industries in rural areas.

Modern Agriculture:
Since 1966 modern agriculture emerged in India. Modern agriculture uses modern inputs like hybrid seeds, chemical fertilisers, pesticides, new machines of agriculture, irrigation, etc. Due to use of these modern inputs agricultural production increases extensively.
1. Green Revolution:
Use of new technology of agriculture started from the year 1960-61 at seven districts of India as ‘pilot project’, which is known as ‘Intense Agricultural District Programme’ (IADP).

  • Because of wonderful success of IADP with passing of time, it was applied to whole nation. This was known as ‘High Yielding Varieties Programme’ (HYVP). It is also known as ‘Green Revolution’.
  • Green Revolution is also known as ‘Modern Agricultural Technology Programme’ or ‘Programme of seeds, fertilisers and water technology’.

2. Multiple Cropping:
Multiple cropping shows the nature of agriculture work. Normally two types of crops are seen:

  • Food grains: wheat, rice, bajara, juvar, maize, pulses, etc. and
  • Non-food grains – Cash crops: Groundnut, sesame, castor, soya bean, linseed, sunflower, sugar cane, rubber, cotton, jute, etc.

Reasons for multiple cropping:

  • Technological reasons: Improved seeds, fertilisers, capital, credit facilities, etc.
  • Economic Reasons: To maximise price and income, agricultural instruments, size of farm, protection of insurance, tenure, etc.

3. Crop Protection:
Agriculture productivity should increase with the use of pesticides to protect the crop.

  • Central Insecticide Board and Registration Committee (CIBRC) is appointed to inform Indian farmers about various types of pesticides and its level of poison.
  • The information about quantity of pesticides, time of usage and level of poison should be spread among farmers and pesticides should be made more effective to increase agricultural productivity.

4. Agriculture Research:
Indian Council of Agricultural Research (ICAR) manages agricultural researches.

  • ICAR is spreading awareness of horticulture, Ushering and cattle rearing science.
  • ICAR has done pioneer work for expansion of green revolution.

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