India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 18.6% of the GDP in 2005, employed 60% of the total workforce[7] and despite a steady decline of its share in the GDP, is still the largest economic sector and plays a significant role in the overall socio-economic development of India. Yields per unit area of all crops have grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since the green revolution.
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India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper.[8] It also has the world’s largest cattle population (193 million).[9] It is the second largest producer of wheat, rice, sugar, groundnut and inland fish.[10] It is the third largest producer of tobacco.[10] India accounts for 10% of the world fruit production with first rank in the production of banana and sapota.
[10]
The required level of investment for the development of marketing, storage and cold storage infrastructure is estimated to be huge. The government has implemented various schemes to raise investment in marketing infrastructure. Among these schemes are Construction of Rural Go downs, Market Research and Information Network, and Development / Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization.[11]
Main problems in the agricultural sector, as listed by the World Bank, are:[12]
* India’s large agricultural subsidies are hampering productivity-enhancing investment. * Overregulation of agriculture has increased costs, price risks and uncertainty.
* Government interventions in labour, land, and credit markets. * Inadequate infrastructure and services.
Research and development
The Indian Agricultural Research Institute (IARI), established in 1905, was responsible for the research leading to the “Indian Green Revolution” of the 1970s. The Indian Council of Agricultural Research (ICAR) is the apex body in kundiure and related allied fields, including research and education.[13] The Union Minister of Agriculture is the President of the ICAR. The Indian Agricultural Statistics Research Institute develops new techniques for the design of agricultural experiments, analyses data in agriculture, and specializes in statistical techniques for animal and plant breeding. Prof. M.S. Swaminathan is known as “Father of the Green Revolution” and heads the MS Swaminathan Research Foundation.[14] He is known for his advocacy of environmentally sustainable agriculture and sustainable food security.
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