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Sustainable Development

The real shoots of economic revival lie in agriculture

by The Daily Eye Team August 15 2014, 12:59 pm Estimated Reading Time: 1 min, 8 secs

The rains have fallen short. An agrarian crisis is seemingly upon us. The Green Revolution was supposed to take care of everything. It was supposed to reduce dependence on the fickle monsoon, increase production, boost employment, cut down rural poverty and deter urban migration. India’s agrarian population rose by nearly 50% between 1980 and 2011 and now employs half the country’s workforce. Transporting food has never been more costly. Government support remains minimal, given high weather risks and market barriers.

The peasant produces what he can, but sells at a distress price in the market. The government’s minimum support prices for 27 commodities, including wheat and rice, have so far helped feed India. Ironically, this impoverishes the rural poor, leading to more debt with higher borrowing costs. Traditional farming is not economically viable anymore. India’s irrigation is inadequate; it is vulnerable to climate change, while also being energy-inefficient.

Surface irrigation in India is badly managed with extensive levels of water-logging. Just 40% of actual farm area is irrigated despite more capacity. Groundwater distribution, on the other hand, is not equitable. Those with better pumps and economic clout extract disproportionately more water from groundwater aquifers. Negative externalities, like rising salt concentration, can reduce drinking water and irrigation access. Despite substantial investment and subsidies, high transactional costs prevent farmers from adopting new technologies.

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