scholarly journals Agricultural Growth Diagnostics: Identifying the Binding Constraints and Policy Remedies for Bihar, India

2021 ◽  
Vol 26 (2) ◽  
pp. 207-225
Author(s):  
Elumalai Kannan ◽  
Sanjib Pohit

Agriculture plays a significant role in economic development of underdeveloped regions. Multiple factors influence the performance of agricultural sector but a few of these have a strong bearing on its growth. This study develops a growth diagnostics framework for agricultural sector in Bihar, located in eastern India, to identify the most binding constraints. The study results show that poor functioning of agricultural markets and low-level of crop diversification are the important reasons for low agricultural growth in Bihar. Rise in price instability of agricultural produces indicates a weak price transmission across the markets even after repealing the Agricultural Produce Market Committee Act. Poor market linkages and non-functioning producer collectives at village-level affect the farmers’ motivation for undertaking crop diversification. Hence, policy suggestions to overcome these binding constraints include the state provisioning of basic market infrastructure to attract private investment in agricultural marketing, strengthening the Farmer Producer Organisations, and framing a comprehensive policy on crop diversification.

1974 ◽  
Vol 13 (3) ◽  
pp. 280-307 ◽  
Author(s):  
Sarfraz Khan Qureshi

The role of marketing in the allocation of resources within the agricultural sector is an important one. This role consists in translating the market demand for various agricultural crops into profit incentives for the farmers. The marketing system that does not adequately perform the task of transmitting the profit signals from the consumers to the producers results in misallocation of resources and less than optimal application of inputs in the production of agricultural crops. Despite the importance of the marketing system, the analysis of the market structure and the dynamics of agricultural marketing have received little attention in the developing countries. Several recent works have explored the efficiency aspects of contemporary marketing systems [7,9]. A recent case study of the marketing system in Brazil has clarified some of the interrela¬tionships between marketing and development [23]. Literature on marketing in Pakistan is scarce and deals mostly with the description of the institutional system [2, 18,19,20,21]. No attempt is made to test hypotheses regarding efficiency of the agricultural markets. The evolution of the marketing system is not systematically traced.


Indian agriculture is known for its historic capacity and reliance on agricultural produce. Though, this sector has seen downs in the 1960s and then for a few years in the 1980s; at present it is one of the growing sectors in India. Thanks to the initiatives taken by the Central and the State Governments from time to time to motivate the farmers through various activities and policies. A few such initiatives are The Pradhan Mantri Fasal Bima Yojna (Corp insurance) in June 2016, Approval of Blue Revolution, and Government Investment to improve milk productivity (Rupees 221 Crores), Energy Efficient Irrigation Systems, Launch of Parikrama Krishi Vikas Yojna (to address critical importance of soil and water for improving agricultural production) at central level and the Kalia Yojna, Waiver of interest on crop loans, Minimum Support Price (MSP) at the state level. Despite such initiatives, Indian agriculture that contributed to 51% to the GDP in the 1950s presently stands at an all time low at 14% in the year 2018. The problem relating to the agricultural sector is not productivity, but it is the lack of interest and motivation on the part of farmers to cultivate due to insufficient and scarce incomes generated by cultivation. This article suggests a model that could be used by the Government in the state of Odisha to motivate farmers produce more and at the same time help revenue generation and employment in the agricultural sector as well.


2021 ◽  
pp. 097226292097797
Author(s):  
Sanjay Chaudhary ◽  
P. K. Suri

Purpose: This research study identifies the enablers of adoption of e-trading of agricultural produce in India. It also proposes an adoption framework for promoting e-trading of the agricultural produce. The total interpretive structural modelling (TISM) method is used to develop hierarchical relationships among enablers. It brings the suggestions to improve the critical enablers for the use of policymakers, e-trading managers and market makers. Methodology: The research conducted in two phases, identification of variables, using literature assessment and analysing the relationship between the identified enablers using TISM. A case study of the National Agriculture Market (eNAM) project was undertaken to understand the enablers of the adoption in a common pan-India e-trading platform. Further, cross-impact matrix multiplication applied to classification (MICMAC) analysis explores the driving and the dependence power of the identified enablers. Findings: This research proposes an e-trading adoption framework for the Indian agricultural supply chain. The ‘perceived ease of use’, ‘facilitating conditions’, ‘social influence’ and lower ‘cost’ are identified as significant enablers in this study besides ‘trust’ and ‘perceived usefulness’. A few suggestions bought out in this paper are expected to improve these enablers, which are expected to help in enhancing eNAM adoption, thereby improving the supply chain of agricultural produce. Research Implications: The well-structured analysis in the hierarchical form helps to get more insight into the influence of the seven enablers identified by TISM technique on the adoption of e-trading in the Indian agricultural marketing and supply chain. The e-trading in Indian agricultural has significant economic and workforce value for the country. The suggestions of this study provide insight into practical improvement step considerations for policymakers and e-trading managers in the agricultural sector and micro, small and medium enterprises.


1986 ◽  
Vol 25 (4) ◽  
pp. 839-853
Author(s):  
Sarfraz Khan Qureshi

Taxation of the agricultural sector is a major instrument for mobilization of the surplus to finance development projects within the agricultural sector and/or the rest of the economy. For many years, the need for a heavier taxation of agricultural land has formed part of the conventional wisdom regarding the ways of extracting agricultural surplus and increasing the tempo of agricultural development in poor countries. Land taxes have both equity and efficiency properties that gladden the hearts of both economists and vocal politicians belonging to urban areas. Taxes on land promote efficiency in the allocation of scarce resources by creating incentives for farmers to increase their effort and reduce their consumption, thus expanding the amount of agricultural produce available to the non-agricultural sectors of the economy. A tax on land has an important redistributive function because its incidence falls squarely on the landlord and is shifted neither forward to consumers nor backwards to suppliers of agricultural inputs; nor does it introduce distortions in the allocation of productive resources.


Author(s):  
Aigul Aldungarovna Aitpaeva

The article focuses on the importance of digitization of agriculture for rising the competitiveness of the domestic agro-industrial complex (AIC). In order to obtain an objective picture of APC nowadays, there have been analyzed the supplies of the staples in the Russian Federation and revealed the problems with producing milk, beef, fruit and vegetables of sheltered ground. It is stated that today Russia is actively implementing import substitution strategies in the sectors of the national economy including the agricultural sector. The main purpose of functioning of the national AIC has been determined as ensuring the parameters of food security for the population of Russia. There are considered the burning issues on achieving food self-sufficiency, the solution of which lies in increasing the competitiveness of the national AIC. The emphasis is placed on the need to transfer agricultural production to the ecological and economic principles of management and the rational distribution of using all types of resources. It has been recommended to assess the soil-climatic and economic potential of the territory in order to identify the priorities of food self-sufficiency for basic types of food in all regions of the country. Formation of the organizational and economic mechanism for creating competitive advantages of AIC helps to develop agricultural production on the innovative basis and to ensure the long-lasting food security at the federal level. The factors increasing AIC competitiveness are: economic soil fertility, usable agricultural areas, optimization of the structure of sown areas, system development of fodder production and animal husbandry, digitization of agriculture, etc. There have been analyzed the problems of insufficient digital prevalence in agriculture; the role of digitalization in achieving the parameters of food security is substantiated. The study results can be used to improve the mechanism of ensuring food security for the population of Russia.


2019 ◽  
Vol 56 (03) ◽  
pp. 767-773
Author(s):  
Ehsan Bhutta

The evolution of high-yielding varieties of seeds, increasing use of fertilizers, pesticides, installation of tube-wells and mechanization has increased the agricultural productivity (AP). An efficient agricultural marketing (AM) system increases the growth of agri-business and improves the economic growth. More recently, research has shown that agriculture growth cannot be realized without well- functioning agricultural produce markets (APMs).In Pakistan, however, development of APMs largely remained neglected because of overriding emphasis of public policies on enhancing AP. Consequently, APMs could not be developed adequately and imperfections in the legal structure, management and operations of these markets have limited their performance. A survey was conducted in nine districts of the Punjab province having interviews with staff of market committees (MCs-90), commission-agents (CAs-90), whole-sellers (WS-90) and retailers (RT-90). The results reflect that there is an urgent need for amending legal and institutional mechanism for making APMs efficient. The study will help academia and policy makers to improve efficiency of APMs in the province


2021 ◽  
Vol 57 (4) ◽  
pp. 104-109
Author(s):  
Laishram Priscilla ◽  
Priyajoy Kar ◽  
Oinam Krishnadas ◽  
Laitonjam Nivetina ◽  
Ph Romen Sharma

The study used a large farm household level data to assess the economic impact of crop diversification and also identifies the factors influencing the extent of diversification in the north east region of India. The crop sector was found to be skewed towards specialization. The result of instrumental variable technique showed that crop diversification has a positively significant impact on the income among the households. Further, fractional logit estimation found that variables like family members in the working age group, landholding size, crop loss experience, extension contact, participation in training positively affected diversification. Irrigated area, access to institutional credit, etc negatively affected the same. Diversification towards high value crops may accelerate the agricultural growth of the region and improve the wellbeing of the farmers. Measures for improvement of basic infrastructural facilities and extension services for improving backward and forward linkages are required.


2018 ◽  
Vol 10 (9) ◽  
pp. 3262 ◽  
Author(s):  
Mengzhen Zhao ◽  
Zhenhua Chen ◽  
Hailing Zhang ◽  
Junbo Xue

The sustainable development of agriculture is important for China, where more than 20 percent of the world population live. Many factors affect the sustainable development of agriculture in China. The purpose of this paper is to find out what factors play influential roles on affecting the growth pattern. Based on a modified production function model built upon Slow (1956) and Romer (2001), the impact of growth drag on the agricultural economy, and the contribution resources, are evaluated empirically using a time-series regression analysis based on the case of China for the period 1978–2015. The estimated coefficient of the total agricultural growth drag in China is 1.32, which suggests that the annual agricultural growth is associated with a 1.32 percent decline due to the scarcities of land, water, and energy. Specifically, the growth drags from land, water, and energy are found to be 0.5 percent, 0.44 percent, and 0.38 percent, respectively. Additionally, the results suggest that capital is the most important factor in the agricultural sector, although agriculture is highly dependent on land. Capital contributes around 76.86 percent to the growth of the agricultural economy, whereas contributions from land, energy, water, and technological progress are relatively small. Therefore, more investment should be added to agriculture, to accelerate the technology progress. Furthermore, the saving of water and energy is also important for the sustainable development of agriculture.


Author(s):  
Alan Olmstead ◽  
Paul W. Rhode

This chapter examines the crucial roles of biological learning and mechanization in facilitating the long sweep of American agricultural expansion and productivity growth. It also explores the major debates concerning the relationship between agricultural growth and overall economic development, the sources and impacts of the twentieth-century decline of the agricultural sector, the role of government policies, and the directions of current and promising future research. The chapter highlights the roles of biological innovation and mechanization in driving territorial expansion and productivity growth. It also investigates the forces behind the structural change affecting the role of agriculture in the US economy.


2020 ◽  
Author(s):  
Thomas Iserloh ◽  
Felix Dittrich ◽  
Cord-Heinrich Treseler ◽  
Katharina Frey-Treseler ◽  
Roman Hüppi ◽  
...  

<p>The intensification of European agriculture leads to soil degradation, reduction of biodiversity and an increased economic risk for the farmers. An approach towards solving this problem is crop diversification and the optimized use of resources. Increasing agricultural efficiency/resilience through diversification and the associated falling environmental costs could contribute to the growth of the European agricultural sector by adapting the entire value chain.</p><p>The EU-funded project DIVERFARMING (Horizon 2020 no 728003) aims to develop and deploy innovative farming and agribusiness models based on crop diversification. Germany is involved with a broad-based study in organic steep slope viticulture in Wawern (Saar Valley).</p><p>A fundamental issue of steep slope viticulture is related to vegetation management below the vines. In order to overcome problems of soil erosion and soil organic matter depletion, an increasing number of winemakers is establishing cover crops such as grasses and legumes in driving lanes. On the contrary, the area underneath the vines is typically kept free of vegetation to avoid fungal diseases and competition on water. As cover crops do not benefit to the value chain and may compete with vines on water or have other adverse effects on vine performance, an alternative strategy for vegetation management underneath vines in steep slope viticulture is required.</p><p>Therefore, intercropping vines with perennial herbs like Thyme and Oregano growing underneath is a promising cropping practice to address the abovementioned issues. Both herbs are economically valuable and originate from dry and warm environments, which are typical for most viticultural areas. Furthermore, their relatively low need for water and flat-growing habitus is assumed to be suitable to cover the soil underneath the vines in order to protect against erosion and suppress weeds without having adverse effects on vine growth and -health. They can be marketed directly or indirectly as a concentrate for cosmetics, perfumes, nutritional supplements and food.</p><p>During the 5-year project, we will investigate impacts on and interactions between crops, soil ecological and physicochemical properties as well as erosion and emission of greenhouse gases to evaluate ecological benefits of crop diversification. Selected results obtained within the first two years of investigation will be presented.</p>


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