Explain the statement that green revolution enabled the
government to procure sufficient food grains to build its stocks that could be
used during times of shortage.
Answer
The use of modern technology,
extensive use of fertilizers, pesticides and HYV seeds which together formed
the Green Revolution led to an Impressive rise in food grains production. The
agricultural productivity and average yield also increased considerably. The
other measures accompanying Green Revolution such as the development of
marketing system, abolition of intermediaries, and subsidised credit for farm
investment provided greater portion of marketable surplus to farmers. All these
factors contributed to high crop yield which enabled the government lo procure
sufficient food grains to build the buffer stock lo be used in times of
shortages due lo scanty rainfall, delayed monsoon, drought and other natural
calamities.
1.
While subsidies
encourage farmers to use new technology, they are a huge burden on government
finances. Discuss the usefulness of subsidies in the light of this fact.
Answer:
Subsidy in agriculture
means providing some important inputs to farmers at a concessional rate that is
much lower than its market rate. During 1960s, in order to adopt new
technology. HYV seeds and use of modern fertilizers and insecticides, farmers
were provided inputs at a subsidised rate. The following arguments are given to
prove the usefulness of subsidies (i) It was necessary to use subsidies to
provide an incentive for adoption of the new HYV technology by farmers
especially the small farmers. (ii) Any new technology is considered as being
risky by farmers. Subsidies were, therefore, needed to encourage farmers to
adopt the new technology initially. (iii) Farming in India is still a risky
business and subsidies provide hedging against the risk of climatic conditions.
(iv) Most farmers are very poor and they will not be able to afford the
required inputs without subsidies. (v) Subsidies bring about equity between
rich and poor farmers by enabling the poor farmers to use modern technology and
inputs. On the other hand, some economists believe that once subsidies should
be phased out since their purpose has been served and the technology is now
widely adopted due to its profitability. They argue that there is no case for
continuing with subsidies as It does not benefit the target group and it is a
huge burden on the government's finances. They give the following arguments
against subsidies in agriculture (i) Subsidies are benefiting the fertilizer
industry more than farmers and it is not making any efforts towards increasing
its efficiency as it is protected from market competition by subsidies. (ii)
Subsidies are mainly being availed by big farmers in affluent regions who do
not actually need them. Hence, based on the above arguments, we can conclude
that although subsidies are very useful and necessary for poor farmers and to
overcome uncertainties associated with farming. It may lead to wastage of
resources and thus put an excessive burden on the scarce government finances.
Thus, suitable reforms need to be undertaken in order to ensure allocation of
subsidies in a targeted manner only to the needy farmers.
2.
Why, despite the
implementation of green revolution, 65 per centof our population continued to
be engaged in the agriculture sector till 1990?
Answer:
Although with the advent of Green Revolution, Indian
agricultural production increased substantially that enabled India to attain
the status of self-sufficiency in food grains, this increase is substantial
only in comparison to food grain production in the past. India failed to
achieve structural transformation associated with the economic growth and
development. The industrial and service sector in India failed to generate
significant employment opportunities in order to attract and absorb excess
agriculture labour. In India, between 1950 and 1990, the proportion of GDP
contributed by agriculture declined significantly (67.5% in 1950 to 64.9% by
1990). This makes it evident that the industrial and service sector growth was
not very significant and thus could not provide employment opportunities to the
surplus labour from agricultural sector leading to disguised unemployment in
agriculture. The slow growth of secondary and tertiary sector has been
responsible for majority of population (around 65%) remaining in agricultural
occupation till 1990.
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