Saturday 2 May 2020

Indian Economy - 1950-90 (Part 4)

CHAPTER 2
INDIAN ECONOMY 1950-90
(PART - 4)

NEW AGRICULTURAL STRATEGY - GREEN REVOLUTION 


Green Revolution implies the strategy related to improving production technique and productivity in agriculture by using modern technology and inputs like HYV seeds, pesticides and insecticides etc.
This strategy aimed at improving agricultural productivity by means of:
* Rapid technology modernization based on ne HYV seeds
* Irrigation
* Chemical fertilizers and pesticides
* Deliberately concentrating investment crop wise  and region wise.

          The NATIONAL AGRICULTURAL STRATEGY was put into practice for the first time in India in the kharif session (in July – October) of 1966 and was termed as High Yielding Varities Programme. This program was introduce as a package programme since it depended crucially on regular and adequate supply of agricultural inputs like water, fertilizers, HYV seeds, pesticides and insecticides.

4.1 Features of Green Revolution –
1. High Yielding Varieties of seeds,
2. Extensive use of fertilizers,
3. Expansion of Irrigation facilities,
4. Plant protection,
5. Establishment of different institutions,
6. Agro-service centers,
7. Multiple cropping programme,
8. Mechanization,
9. Scientific method of agriculture,
10. Development of agricultural land,
11. Improvement of animal husbandry,
12. Fixation of Minimum Support Prices.

4.2 ACHIEVEMENTS OF GREEN REVOLUTION

1. Rise in Production and Productivity – As a result food grain production increased from 81.0 million tonnes  in third five year plan to 118.1 million tonnes in fifth five year plan.,
Crop
1951
2016-17
Rice
665 Q / Hectare
2550 Q / Hectare
Wheat
660 Q / Hectare
3216 Q / Hectare
Maize
704 Q / Hectare
2664 Q / Hectare

2. Increase in Income / Marketable Surplus – Green revolution resulted in marketable surplus. It refers to that part of agricultural produce which is sold in the market by the farmers after meeting their own consumption requirements. After selling a part of their product, farmers are earning income which they can use in purchasing other useful things required in agriculture.
3. Change in Farmer’s Outlook – Commercialization of agriculture has caused a change in outlook of the farmers. Now farmers are considering agriculture as a source of earning instead of subsistence.
4. Buffer Stock of Food Grains – India is able to procured sufficient amount of food grains to build a stock which can be used in tough times. At present India had the following buffer stock.
Crop
Stock in M.T.
Wheat
275.21
Rice
309.76
Unmilled Paddy
287.08
5. Decrease in the price of food grains –
6. Benefit to low Income Group – As a result in the decrease in the price of food grains, those people, who were spending a large proportion of their income on food grains, now had to spend less.
7. Rural prosperity,
8. Industry and agriculture relationship,
9. Innovation.

4.3 SHORTCOMINGS OF GREEN REVOLUTION

1. Increase in disparities between small and big farmers – The gulf between poor and rich farmer has substantially risen over time. Poverty is widespread and indebtedness was extremely high. Green revolution increases the economic inequality.
2. Risk of pest attack – The HYV crops are more prone to attack by pests. So, there was a risk that small farmers who adopted this technology could lose everything in a pest attack.
3. Limited crops – Revolutionary rise in output is stick mainly with production of food grains. There has been no similar rise in production of pulses and commercial crops like jute, cotton, tea etc.
4. Regional imbalances – It was not uniform across all regions. In states like Tamilnadu, Harwana, Maharashtra, Punjab, it made a remarkable impact. But in eastern UP, Bihar, MP and Odisha, its impact was relatively insignificant.  
5. Limited Farming Population – The benefits of green revolution eluded the marginal and small farmers as inputs are beyond the reach of these farmers.

05. ECONOMIC SUBSIDY - To assure availability of fertilizers to the farmers at reasonable price government is providing subsidy. India has been providing two types of subsidies – (a) subsidy in agricultural inputs, (b) subsidy on food supplies to PDS. A current debate is should subsidy continue or we may go without subsidy. Arguments are put forward both in favour and against subsidy.

5.1 Favour –
1. Agriculture is a risky business.
2. Farmers are poor and can’t afford new technology and seeds.
3. Eliminating subsidy will increase income inequality.
4. Encourage use of new technology and HYV package.
5. Steps should be taken to reach out the needy farmers instead of eliminating subsidy.

5.2 Against –
1. Main benefit is taken by big farmers.
2. Technology is now adopted by all so it should be eliminated.
3. It does not benefit the target group and creating a huge burden on government
4. More benefit given to the industries, who, produced inputs.

Points to remember  
Dr. Norman E Borlaug – Inventor of Green revolution
Dr. M. S. Swaminathan - Inventor of Green revolution (In India)
Food Corporation of India – 1965
Agricultural Price Commission – 1965
Commission for Agricultural Cost and Price - 1985

CRITICAL APPRAISAL OF AGRICULTURAL REFORMS

GAINS
1. Land reforms and Green revolution are great achievements of India.
2. Substantial increase in agricultural productivity between 1950 to 1990.
3. India is now self sufficient in food grain production.
4. Abolition of Zamindari system.  

LOSS
1. Population depends upon agriculture is not decreased significantly.
2. Output Increases but workforce engaged in agricultural sector was not decreases. 
3. Industry and service sector failed to absorb agriculture sector workforce.

(for more data please watch video)

VIDEO REFERENCE  

Indian Economy (1950-90) - PART 3
(Agricultural development, Green Revolution)

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Regards 
Dr. Asad Ahmad
KV IIM, Lucknow
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