The growth rate of the sector has been more than 3% but quite a huge number of farmers have been suffering from the realisation of favourable income. Many people consider the rural sector and the agricultural sector to be the same. But actually it is not. In the rural sector, a growing number of people have been engaging in non-farm activities like small trading, contract jobs, financial or other agencies and transports. Non-farm activities have not only been a complementary activity of the farm sector – rather it has been a major source of income in the rural areas. Whenever economists discuss the rural sector crisis, they generally point out the crisis of the non-farm activities.
Distress of the farm sector
The first macro criterion in analysing the crisis in agriculture has been the adverse terms of trade against industry as well as services. It is estimated that in FY22 the growth rate of the agriculture sector would be 3.9%, a very commendable performance. But this does not mean that the farmers would be happy with it. This is because the terms of trade of agriculture are adverse against industry.
What is the term of trade? It simply means the gap between input prices of agricultural products and prices received by selling those products. It is known from the national income statistics that Gross Value Added (GVA) is projected to grow by 5.2% in FY22 whereas the non- agricultural GVA is projected to grow as high as 10%. It means that farmers must pay a much higher price for inputs and other consumption items like health and education of their family members compared to what they receive by selling farm outputs.
The Indian agriculture during Five Years Plan period
This story is from the September 1 - 30, 2022 edition of BUSINESS ECONOMICS.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 1 - 30, 2022 edition of BUSINESS ECONOMICS.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Bank of Baroda, Kolkata Zone organised Mega Kisan Melas in West Bengal
Bank of Baroda (BOB) organised Mega Kisan Mela at Konkalitala in Birbhum District of West Bengal on November 18, 2024 as a part of the 7th Edition of the Baroda Kisan Pakhwada (BKP).
Time-Bound Disposal of Cases to Expedite the Delivery of Justice and affordabe by all in India
The delay in the disposal of cases in Indian courts remains a significant hurdle to the nation's progress.
Dev Deepawali: A grand celebration of light, spirituality, and culture in Varanasi
The holy city of Varanasi, often regarded as India's spiritual and cultural heart, came alive with the splendor of Dev Deepawali on the sacred day of Kartik Purnima.
The life of Job 'Ye judge not the judgment of God' - Jesus Christ
The Holy Bible reveals through the life of Job how the Lord tests the righteous and that faith helps one to overcome life's adversities.
India has the highest potential for the garment industry, only a conducive government policy is required.
India's textile industry is poised for remarkable growth, with expectations to double its contribution to the GDP within the next six to seven years.
Global Public Debt may be worse than it appears, warns IMF
Global Public Debt Set to Exceed $100 Trillion, Warns IMF
The economic consequences of Trump's Presidency: A global perspective
One of the key economic factors contributing to the Democrats' loss in the US elections was the significant rise in inflation, which was initially triggered by the COVID-19 pandemic and exacerbated by the Russia-Ukraine war.
Challenges and Successes in West Bengal's Education Sector: A Comprehensive Overview
The education system in West Bengal, particularly in districts, villages, slums, and government institutions, reflects a blend of progress and ongoing challenges.
What India can expect from Trump's return
I may be too early to predict how Donald Trump's second term as president will impact the global oil market.
Stocks Surge Following Donald Trump's Election as 47th President of the USA
Stocks soared following the election of Donald Trump as the 47th President of the United States. Investors anticipated that the Information Technology (IT) sector would benefit from lower corporate taxes under the Republican regime, with IT stocks leading the rally.