Sunday 14 April 2013

Socio-economic reasons for Poverty in India with reference to Agriculture



India is still in the developing stages. The major issues hindering the development in India are- Poverty, lack of education, corruption, unsteady industrial growth, bad legislation and so on. The others are quite eradicable if adequate measures are taken. Poverty is not a petty problem. Maximum population comes from rural areas and therefore poverty is something which would be very difficult to eradicate.
Agriculture is India’s major occupation. The economy is striving on the agricultural produce and its export. But the incidence of poverty is on a persisting high due to backward agriculture. The production per hectare and per capita is very low. This is not only because of over-population but also because of very low production which is only about 60% of the world average.
State of Punjab has the productivity potential equivalent to that of the developed countries. If India is to attain the same productivity potential as of Punjab, its production would be more than double than what it is today. If the vast untapped potential of the Indian agriculture, the amount and quality of scientific knowledge and the positive response of the farmers, neither Indian agriculture should remain backward nor our people should be the poorest in the world.
India has about 40 million ha of land which lies unutilised. We still depend on natural resources to grow our crops. Farmers still rely on rains as the source of water. They cannot afford irrigation to supply water to their crops. Due to lack of awareness and education, they do not benefit from the various schemes of the government. Thus, the condition of agriculture remains backward no matter the kind of steps that are taken to develop it.
Due to this dependability, the production is of very low quantity and quality. Thus, the farmers lose a large share of crops in destruction. They are forced to sell the crops at a much lower costs which hardly recover their capital. Most of them incur losses leading to bad debts and increased credits. This results in more and more poverty among already poverty struck areas.
Considering rate of agricultural growth, the factors determining its distribution across farm sizes, its impact on tenancy conditions, its effect on the demand for labour, etc, the increase in poverty is just massive as all these factors get affected with backward agriculture. The growth of agricultural output has only just kept pace with the growth of the rural population which results in stagnation in output per head.
If a regression analysis is done between the incidence of poverty and agricultural performance, we find that improved agricultural performance is definitely associated with reductions in the incidence of poverty. Fluctuation in poverty incidence simply mirrors the movement in agricultural production per head and this inverse relationship is even more firmly identifiable when account is taken of the lags involved. 

The evidence on the relationship between rural poverty and agricultural performance is more difficult to evaluate for two reasons. In the first place, the evidence itself is somewhat mixed. Much depends upon the level of aggregation at which the analysis if conducted with the all-India results presenting a somewhat different picture from that obtained at the level of individual states. Furthermore, the evidence necessarily is difficult to interpret since we are implicitly searching for causal relationships in what are at best observed correlations. 

Maya Chandrashekaran
FSLE -3 

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