Discuss some of the institutional weaknesses in Indian agriculture.

Question

Accepted Answer

Some of the institutional weaknesses in Indian agriculture are as follows:

1. We need to involve the small and marginal farmers and the landless labour in deriving benefits of increased agricultural exports through integrated co-operatives like Mother Dairy and other service co-operatives, contract farming, etc.

2. The present system of credit does not ensure timely availability of credit. In many states, land reforms remain woefully unfinished and tenancy regimes need urgent reform.

3. The Indian agricultural credit system suffers from the problems of subsidised interest rates, poor recovery of loans, high intermediation costs of cooperatives and commercial banks, and debt write-offs.

4. We also need to make efforts to develop new technologies for the farming sector and make them available to small farmers, so that they may diversify their production towards high value commercial and export commodities.

5. We need to create institutions like trading houses, market intelligence services and a network of information on national and international prices.

6. We also need infrastructure for processing, marketing and grading of produce, and investment in information.