2.
First
of
all,
I
would
like
to
remind
that
the
momentum
gained
by
Indian
economy
over
last
15-16
years
following
progress
in
industrialisation,
urbanisation
and
service
sector
has
been
lop-sided.
The
benefits
of
this
progress
have
not
reached
out
to
a
sizeable
part
of
our
population,
particularly
the
rural
populace
and
the
poor.
About
65
percent
of
country's
population
is
still
dependent
on
agriculture
for
their
subsistence.
A
total
of
56.7
percent
of
our
total
work
force
gets
employment
in
farm
sector.
Agriculture
contributes
20
percent
to
the
GDP
and
about
11
percent
to
the
export.
Entire
food
requirement
and
raw
material
for
important
industries
are
met
by
agriculture
sector.
Over
40
percent
demand
of
the
products
of
industrial
sector
depend
on
the
purchasing
power
of
rural
population.
The
fluctuations
in
farm
production,
especially
the
foodgrain
and
the
prices
thereof
directly
impact
the
general
price
level
i.e.
inflation.
Any
event
in
farm
sector,
thus,
affects
country's
entire
economy.
3.
The
country
has
been
grappling
with
many
difficulties
and
obstacles
despite
the
success
of
the
Green
Revolution.
I
would
like
to
briefly
discuss
them.
At
first,
I
would
invite
your
attention
to
the
misleading
presentation
of
certain
statistics.
The
percent
of
population
dependent
on
agriculture,
which
was
75
percent
at
the
time
of
country's
independence,
has
now
come
down
to
65
percent.
The
contribution
of
agriculture
to
the
GDP
has
been
reduced
from
61
percent
to
around
20
percent.
Both
these
are
considered
the
natural
outcome
and
indicators
of
modernisation
of
economy
and
progress.
But,
the
fact
is
that
the
population
of
the
country
at
the
time
of
independence
was
only
36
crore
and
three-forth
of
it
i.e.,
27
crore
was
dependent
on
agriculture.
Now,
the
population
has
crossed
the
1100
millions
mark,
of
which
65
percent
i.e.
close
to
71
crore
is
dependent
on
agriculture.
Another
equally
important
factor
is
that
earlier
75
percent
population
shared
61
percent
of
national
income,
whereas
65
percent
of
our
populations
have
now
to
content
with
less
than
20
percent.
The
pressure
on
agriculture
land
has
constantly
increased.
The
size
of
average
holding
has
shrunk.
About
75
percent
holdings
are
of
less
than
two
hectare,
which
are
totally
unviable
as
an
economic
unit.
The
per
capita
availability
of
agricultural
land
has
reduced
from
0.36
hectare
to
0.12
hectare.
The
gap
between
per
capita
average
incomes
of
those
engaged
in
agriculture
and
those
in
other
occupations,
which
was
about
1:2
till
the
60s
has
now
increased
to
1:11.
4.
The
most
horrible
picture
is
that
of
rainfed
areas
which
comprise
60
percent
of
arable
land.
The
production
per
hectare
in
these
areas
is
stagnant
at
near
one
tonne.
Eighty
percent
of
the
rural
poor
like
in
these
areas.
The
sheering
Green
Revolution
has
also
started
fading.
The
cost
of
agriculture
has
also
escalated
fast
in
proportion
to
the
productivity
and
farming
is
growingly
becoming
a
loss
making
proposition.
Excessive
exploitation
of
land
is
felling
upon
its
fertility.
The
wanton
use
of
water
and
chemicals
is
harming
the
environment
and
health
of
all
the
living
beings
including
humans.
The
excessive
use
of
fertilizers
and
lack
of
bio-products
have
led
to
heavy
deficiency
of
vital
nutrients
like
zinc,
iron,
sulfur,
manganese.
boron
etc.
All
the
edible
ranges
are
now
found
to
contain
residue
of
poisonous
elements
to
alarming
levels.
All
the
fauna
and
flora
are
losing
their
natural
resistance
power.
The
number
of
various
dreaded
and
incorrigible
diseases
is
on
the
increase
and
medical
bills
now
bun
a
big
hole
in
the
pocket
of
the
common
man.
5.
The
anti-farmer
price
policy
has
further
compounded
the
difficulties
of
farmers.
The
deciding
factors
of
farm
price
policy
from
colonial
time
remained
almost
unchanged
even
after
the
independence.
The
Government
continued
to
keep
the
prices
of
edibles
as
low
as
possible
to
keep
in
good
humane
the
articulate
urban
people,
organised
industrial
workers
and
the
industrialists.
The
Minimum
Support
Price
System
did
give
some
relief
to
the
farmers,
but
subsequently
it
also
became
ineffective.
A
look
at
the
historical
pace
of
relative
price
rates
would
make
it
clear
that
since
the
base
year
1960-61
till
now
the
relative
prices
ranged
between
82
and
95
percent.
As
a
result
of
this,
the
farmers
had
to
incur
an
economic
loss
of
12
to
15
percent
annually.
In
other
words,
this
major
portion
of
farmers'
income
made
its
way
to
the
pockets
of
others.
Despite
this,
some
well-known
policy
makers
and
economists
have
been
advocating
imposition
of
income
tax
on
agriculture.
6.
The
rate
of
capital
creation
in
agriculture
sector
has
also
been
on
the
decrease.
In
the
1970s,
21
percent
of
gross
capital
creation
of
the
country
was
done
in
the
farms,
which
has
now
come
down
to
8
percent.
The
capital
creation
reduced
from
18
percent
to
a
mere
4.2
percent
during
the
period.
In
last
three
decades,
less
than
5
percent
of
the
plan
allocation
has
been
provided
to
agriculture
and
allied
activities,
which
include
forests
as
well.
The
rate
of
investment
in
agriculture
has
been
equal
to
that
of
GDP
at
1.3
percent
and
that
in
public
sector
it
has
been
only
0.3
percent
during
the
period.
In
view
of
the
population
dependent
on
agriculture
(65
percent),
percent
of
employment
(57
percent)
and
contribution
of
agriculture
to
GDP
(average
25
percent)
and
total
investment
of
the
economy
(average
26
percent),
agriculture
sector
should
have
received
18
percent,
15
percent
and
minimum
6.5
percent
investment,
respectively.
In
reality,
it
received
any
1.3
percent.
7.
Considering
agriculture
as
a
priority
sector
the
Reserve
Bank
of
India
has
issued
directives
about
two
decades
back
to
all
the
banks
that
they
should
advance
a
minimum
18
percent
of
their
loans
as
farm
loans.
But
this
percent
has
been
12
to
14
over
the
period.
The
C:D
Ratio
of
all
rural
branches
of