Agricultural Sector (VSAQs)

Economics-2 | 5. Agricultural Sector – VSAQs:
Welcome to VSAQs in Chapter 5: Agricultural Sector. This page covers the most important FAQs for Very Short Answer Questions. Each answer is provided in simple English and follows the exam format. This will help you focus on the key points and aim for top marks in your final exams.

Overview:

The Share of Agriculture in India’s national income has significantly declined over time, reflecting the country’s economic transformation. Imagine the economy as a big pie, with different sectors—like agriculture, industry, and services—each getting a slice. In the early days, agriculture had the biggest slice of the pie.

World War I: During this period, agriculture contributed a massive two-thirds of the national income, as most people relied on farming for their livelihoods.
Post-Independence Planning Phase: After India became independent, the country started focusing on industrial and service sectors, which led to a gradual decline in agriculture’s share.
1950-51: At the start of India’s planned economic development, agriculture still held a significant 56.5% share of the GDP.
2012-13: Fast forward to modern times, and this share has shrunk to just 13.9%, indicating that other sectors have grown rapidly while agriculture’s role has become smaller in terms of its contribution to the overall economy.

VSAQ-2: Agricultural Productivity

Agricultural Productivity is all about how much crops farmers can grow on a piece of land. It’s like measuring how many fruits you can get from one tree. In India, boosting productivity has been a major focus to ensure enough food for everyone.

Modern Practices: Over the years, Indian farmers have started using better seeds, like hybrid seeds, and advanced farming techniques. These include using more efficient water systems and fertilizers that help plants grow better.
Result: Thanks to these improvements, the amount of crops grown per hectare (a hectare is a bit bigger than a football field) has increased, meaning that productivity is higher. This change has been crucial for feeding India’s large population and supporting the economy.

VSAQ-3: Land Degradation

Land Degradation is when the quality of the land deteriorates, making it less fertile and harder to grow crops. Think of it like soil getting tired and losing its strength because of how it’s treated.

Extent of the Problem: In India, about 43% of the land is affected by this problem, which means almost half of the country’s farming land isn’t as productive as it could be.
Impact: This degradation can lead to big drops in crop yields—anywhere from 33% to 67%, which is a huge loss for farmers and the food supply. Additionally, about 5% of the land has been so severely damaged that it’s no longer suitable for farming at all. This issue is a major challenge for maintaining sustainable agriculture in India.

VSAQ-4: Green Revolution

The Green Revolution was a period of major change in Indian farming from 1960 to 1980. It’s called the ‘Golden Era’ of agriculture because of how much it improved food production.

What Happened: During the Green Revolution, Indian farmers began using high-yielding variety (HYV) seeds that produced more crops. They also started using more fertilizers, pesticides, and insecticides to protect crops from pests and diseases. Better irrigation methods were introduced, ensuring that crops got enough water even in areas with little rainfall.
Outcome: These innovations led to a huge increase in crop production, particularly for staple crops like wheat and rice. This not only helped India achieve self-sufficiency in food grains but also spurred economic growth, making the country more secure and less dependent on food imports.

VSAQ-5: Buffer Stock

Buffer Stock is like a safety net for food security. Imagine the government as a big warehouse keeper. During times when farmers produce a lot of food, and prices drop, the government buys up the extra grains and stores them. This stored food is called buffer stock. When there’s a shortage of food, or prices start rising too high, the government releases this stored food back into the market. This helps keep food prices stable and ensures that everyone has enough to eat, even when harvests are poor. Buffer stock is essential for maintaining price stability and ensuring that there’s always enough food available for everyone.

VSAQ-6: Warehousing Facilities

Warehousing facilities are like the giant pantries of the agricultural world, where food and crops are safely stored until they are needed. In India, the government recognized the need for these storage spaces and established the Central Warehousing Corporation back in 1957. This was done to help small and marginal farmers avoid selling their crops at low prices due to a lack of storage. With the help of State Warehousing Corporations and the Food Corporation of India (FCI), the country has built a robust storage infrastructure.

By the end of 2018, the FCI alone had a storage capacity of 851.54 lakh metric tonnes! These warehouses are crucial for preventing wastage, preserving food, and ensuring that we have enough stored food to meet our needs throughout the year.

VSAQ-7: Food Security

Food security is all about making sure that everyone has enough food to live a healthy and active life. According to the World Development Report (1986), food security means that there is always enough food available for everyone. The Food and Agriculture Organization (FAO, 1983) adds that it’s not just about having food, but also about making sure that people can afford and physically access this food.

Think of food security as building a strong food system that can provide everyone with nutritious food consistently, no matter what challenges come our way. It’s like ensuring that every household has a well-stocked pantry and enough resources to keep it that way, addressing the issues of hunger, malnutrition, and overall well-being.

VSAQ-8: Regional Rural Banks (RRB)

Regional Rural Banks (RRBs) are like the financial lifelines for rural India. They were established to ensure that even the smallest and most remote farmers, artisans, and rural workers could access the credit they need. These banks were first set up following the recommendations of the Working Group on Rural Banks led by M. Narasimham. The first five RRBs opened their doors on October 2, 1975, and today, there are many more.

These banks play a crucial role in supporting the agricultural sector by providing the necessary loans and financial services. For example, in the 2012-13 financial year, RRBs contributed 10.5% of the total credit available to agriculture, helping farmers and rural communities thrive.

VSAQ-9: Co-operative Farming

Co-operative farming is an initiative where small farmers come together to form a collective. Imagine a group of farmers in a village pooling their small plots of land to create a larger, more manageable farm. This collective farm is then run by an elected group of people who make decisions about what to plant, how to manage the land, and how to share the profits.

While the idea sounds great, co-operative farming in India has faced challenges. Some farmers are reluctant to join, and managing a co-operative farm efficiently can be tough. Despite these challenges, the concept aims to improve the productivity and livelihoods of small farmers.

VSAQ-10: Grading

Grading is like sorting out fruits and vegetables by their quality before they hit the market. When farmers harvest their crops, not all produce is of the same quality. Grading involves classifying these products into different categories based on factors like size, color, and freshness. In India, this system is backed by the Agricultural Produce Act of 1937, which led to the creation of grading stations.

Products that pass these grading stations get an AGMARK seal, which is like a stamp of quality. Consumers trust this seal because it assures them that they’re buying high-quality, standard products.

VSAQ-11: Rural Indebtedness

Rural indebtedness is a significant issue in India, where many rural people borrow money from local money lenders who charge very high interest rates. Often, these loans aren’t used for productive purposes like buying seeds or tools, but rather for day-to-day needs or emergencies. As a result, paying back these loans becomes incredibly difficult, trapping borrowers in a cycle of debt that can last for years.

This situation is a major challenge for rural communities, as it keeps many people in poverty and limits their ability to improve their living standards.