UNIT 7 AGRI-BUSINESS ENVIRONMENT

Objectives

After reading this unit you should be able to:

• analyse the trends in agricultural production, sales and exports in India;
• explain the framework of evolution of Farm Policies in India;
• analyse the Farm Reforms 2020;
• identify the gaps and key players in the Agriculture Sector;
• draw a comparison between State Specific Industrial Policies in India; and
• assess the role and importance of Agriculture Marketing.

Structure

7.1 Introduction
7.2 Trends in Agricultural Production, Sales and Exports
7.3 Evolution of Farm Policies in India
7.4 Farm Reforms 2020
7.5 Key Players in the Agriculture Sector
7.6 Role and Importance of Agricultural Marketing
7.7 Summary
7.8 Key Words
7.9 Self-Assessment Questions
7.10 References/ Further Readings

7.1 INTRODUCTION

Since independence, the agricultural sector has witnessed a mixed path withsignificant
progress in agricultural development in India. The progress can be witnessed through
increase in crop production, productivity, diversification, and technological developments.
During the initial years, there were some hiccups and growth stagnated. However, since the
mid-1960s, growth rate started moving up and gained momentum especially during the mid-
1980s but started losing the pace in 1990s and this was tilted towards foodgrains to address
the issue of food security. In recent years for those dependent on agriculture as a key source
of livelihood, it is turning un-sustainable in terms of economic and social consequences -
majorly agrarian crisis with a sweepingmigration to the cities and farmers’ suicides etc.This
cast doubt on the future growth prospects of the Indian economy, which is majorly dependent
on the growth performance of agriculture.Besides, our import needs are well-established
when it comes to essential food products such as pulses and edible oils.

So, to understand the various trends and factors responsible in shaping India’s agricultural
landscape, it is essential to know the economic reforms and regeneration with a sustained and
broad-based agricultural development. This calls for an understanding of the factors that may

1
have contributed to shaping past trends and will also help in designing the future strategy of
development. This unit brings forth some of the important issues in order to understand the
agriculture environment in detail.

7.2 TRENDS IN AGRICULTURE PRODUCTION, SALES, AND EXPORTS

More than half of the country is reliant on agriculture since it is the prime source of living
and employment for about 58% of Indian population. The latest data highlights that growth in
Gross Value Added (GVA) in agriculture and allied sectors stood at 4% in 2020. Considering
this, the Indian food industry is on the threshold of massive growth, increasing its
contribution to world food trade every year. The food industry has a huge potential for value
addition with a bright prospect, where the food processing industry where the Indian food
processing industry accounting to 32% of the country’s total food market.It is one of the
largest industries in India and is ranked fifth in terms of production, consumption, export and
expected growth (IBEF 2020).

Currently, the food and grocery market in India is the sixth largest globally, with retail
contributingto 70% of the sales and the agriculture, forestry and fishing growth is predicted to
be 3% in the 2021.

India is one of the leading exporters of agricultural products globally. The food grain
production was estimated to reach a record 295.67 million tonnes (MT) during the year 2019-
20 and the government has set a higher food grain production target in 2020-2021. According
to Indian Sugar Mills Association (ISMA), the production of sugar in India reached 26.46
MT between October 2019 and May 2020 whereas horticulture crops in India stood at a
record 320.48 million metric tonnes (MMT) in 2020.The organic food sector is pacing at an
advanced rate andis expected to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025.

Various government initiatives, investments and interventions have helped the Indian food
processing industry to attract Foreign Direct Investment (FDI) inflow. The business has
attracted US$ 10.20 billion between April 2000 and September 2020 according to the figures
released by Department for Promotion of Industry and Internal Trade (DPIIT). Few other
initiatives in the sector that helped boost growth are subsidiaries in agricultural loans,
introduction of forest fresh organic products, Pradhan Mantri Fasal Bima Yojana which
collates data infrastructure for farmers. Another initiative is the introduction of animal
husbandry infrastructure and launch of National Animal Disease Control Programme
(NADCP), which aims to eradicate foot and mouth disease. Launch of various mega food
parks including one in Punjab, launch of PM Matsya Sampada Yojana, e-Gopala App and
several initiatives in fisheries production, dairy, animal husbandry and agriculture, along with
a Transport and Marketing Assistance (TMA) programme to provide financial support for
transport and marketing of agriculture products (IBEF 2020).Other major intervention was
the approval of the Agriculture Export Policy, 2018 which aims to increase India’s
agricultural export to US$ 60 billion by 2022. Enhancing the aptitude of food processing

2
sector in India and allowing 100% FDI in promotion and marketing of food products and in
food product E-commerce under the automatic track are other major interventions to escalate
productivity and growth.

There have been many notable achievements in the sector such as in line of mega food parks
and other sectors. Of the total 37 food parks, 21 mega food parks are operational, coffee
export has shown promising results and stands at US$ 742.05 million in 2020 while tea
exports stand at US$ 709.28 million in FY20. After the launch of Electronic National
Agriculture Market (e-NAM) in April 2016, more than a thousandmarketplaces (mandis) are
linked to e-NAM. This was an initiative to create anintegrated market for agricultural
products.

The farming and food production in India is expected to fast-track its pace of growth in the
coming years and is expected to achieve its aspiring aim of amplifying farm income by 2022.
This has become possible because of increased investment in agricultural infrastructure such
as irrigation facilities, ware-housing and cold storage. An overall increase in usage of
genetically modified crops will likely improve the yield for Indian farmers with the help of
concerted efforts of scientists. Self-reliance in pulses in next few years with the help of
minimum support price will be another step. Other areas focussing on adoption of good
manufacturing, food safety and quality assurance mechanisms is essential for development
and enhancement. This will immensely help in achieving Quality Management and Good
Hygienic Practices by the food processing industry and will in turnopen more avenues and
offer benefits.

7.3 EVOLUTION OF FARM POLICIES IN INDIA

Legislative powers are distributed between the centre and the states through the Seventh
Schedule of the Indian Constitution. Agriculture is part of the State List therefore only
individual states have the power to legislate on such matters, but the Central Government has
residual powers.

Domestic Agricultural Policies

1947-1965
During the initial years, achieving self-sufficiency was the primary objective of India’s
agricultural policies which was aimed to improve food security. Since the principal aim of the
land reforms was to get rid of challenges imposed by middlemen with an improvement in
production while focussing on establishing worker ownership and equity in rural society. In
view of this, the first major reform that was enacted by the states post-Independence was the
Zamindari Abolishment Act (1950s). To place an upper limit on the size of agricultural land
holdings, establishing state control on vacant lands and to distribute the acquired idle land to
the disadvantaged rural population was established to provide security to the renters.

3
1965-1980
The era marked Green Revolution, launched in 1965. It focussed on using innovative
techniques and increasing crop productivity with the help of technology. India started
importing high yielding varieties (HYVs) of wheat and rice and adopted improved pesticides,
fertilisers and irrigation methods which led to increased food grain production. For further
amendments, the government set up important institutions in 1965. One was the Commission
for Agricultural Costs and Prices (CACP) previously called the Agricultural Prices
Commission and the Food Corporation of India (FCI).

To lend money to farmers and increase lending by enhancing flow of credit to the agriculture
sector, new financial institutions including the National Bank for Agriculture and Rural
Development (NABARD) and Regional Rural Banks (RRBs), were set up and 14 largest
commercial banks were nationalised in 1969 in view of this.

1980-1991
The focus was on improving crop production during the Green Revolution, so the
corresponding years focussed on expansion in the use of green revolution technologies to
other crops and regions. As agricultural output rose, production began to diversify into high
value commodities, such as fish, poultry, milk, fruits, and vegetables.

1991 onwards
The agricultural reforms lagged the general economic reforms but over time the policies
regulating agricultural trade were relaxed. A major step was the transition from the Public
Distribution System (PDS) to the Targeted Public Distribution System (TPDS) in 1997 aimed
to ensure that impoverished people get access to food at subsidised prices. In July 2000, the
Government of India announced the country’s first ever National Agriculture Policy (NAP).
This policy aimed at achieving a growth rate more than 4% per annum in the agriculture
sector. The objectives of this policy were to create employment opportunities for rural
population, accelerate the growth of agro businesses, explore and realise the massive
untapped growth potential of Indian agriculture, promote better standard of living for rural
population, discourage relocation from rural to urban population and to overcome the trials
arising due to economic reforms of 1991.

Marketing Policies

The National Policy for Farmers (NPF) approved by the Government in 2007 recognized a
need to emphasise on increasing farmer’s incomes along with production. The five-year plans
also recommended policy initiatives to enhance the working of the agricultural sector. The
National Food Security Act (NFSA) was enacted on 12 September, 2013 with the objective to
provide for food and nutritional safety by guaranteeing access to a good amount of quality
food at affordable prices.

4
Essential Commodities Act (ECA)

An earlier amendment to the Indian Constitution granted the Union Government a statutory
right to standardise and regulate the production, pricing, and delivery of essential
commodities.

The most fundamental policy instrument is the Essential Commodities Act, 1955 (ECA),
which aims to control production, supply, distribution, and pricing of essential commodities
to ensure that essential commodities are made available to the consumers at fair prices. Under
this Act, Centre and State Governments have the power to impose stock limits on the
identified commodities to prevent hoarding. They can also direct a stockholder to
compulsorily sell their stock to the government, regulate prices and ban the holding back of a
product or good for sale.

Agricultural Produce Market Regulation Acts (APMC)

During the 1960s and 1970s, most of the states passed Agricultural Produce Markets
Regulation (APMR) Acts. These Acts are popularly called the APMC Acts since they
regulate markets through Agricultural Produce Market Committees (APMCs). A State’s
APMC Act authorizes the state to set up regulated wholesale markets (mandis or APMC
markets) for agricultural products. The APMCs have the power to controlagricultural markets
and regulate all features of marketing, including the imposition of a mandi tax for trade
taking place both on and off the wholesale markets.

The Act covers the entire state and makes these mandis the required channel for trading farm
produce, and does not allow private players from setting up markets. In 2003, the Ministry of
Agriculture created a model APMC Act and circulated into the states so that they could
modify their individual acts. This was followed by the model APMC rules in 2007.

Minimum Support Price

The pricing policy defined in the ECA and APMC Acts aims to ensure that farmers receive
lucrative prices for their produce while also ensuring that it is affordable for consumers. In
order to do so, the central government sets a Minimum Support Price (MSP) for 24 crops
every year. The FCI and several state level agencies working in support of the FCI are
required to procure the specified commodities from farmers at the notified prices (MSP). But
this mechanism operates effectively only for a few commodities (primarily for wheat, rice
and cotton) and only in a few states. A large number of farmers are required to tradewith
other buyers at prices lower than the specified MSP, especially in eastern India due to
ineffective procurement and lack of alternative buyers.

5
Activity 1
1. Briefly enumerate the key trends in India’s Agri-Business Environment.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
2. Briefly explain the framework for evolution the farm policies in India?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

7.4 FARM REFORMS 2020

On 27th September 2020, Ram Nath Kovind, the President of India gave his acceptance to the
3 farm bills that were earlier passed by the Indian Parliament. These Farm Acts are as
follows:

6
Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

This Act permits farmers to sell their produce outside the APMC regulated mandis but it does
not abolish them. It aims to provide lucrative prices to farmers via alternative trade channels.
It also prohibits state governments from imposing any tax on the trade of produce outside the
mandis.

Farmers’ (Empowerment and Protection) Agreement on Price Assurance and Farm

Services Act, 2020

It creates a national framework for contract farming. Although contract farming was legal
prior to the enactment of this act as well, this act aims to provide a completecomprehensive
outline for such an arrangement. This will enable farmers to contract a guaranteed price for
their produce prior to production/sowing.

Essential Commodities (Amendment) Act, 2020

The ECA has been amended to state that the Government of India will list few commodities
as essential and control their supply and prices only in cases of war, famine, extraordinary
price rises, or natural calamities. Other produce including cereals, pulses, potato, onion,
edible oilseeds, and oils have been deregulated. The amended act also states that the
government will impose stock limits on essential commodities only when the rise in price is
at least 100% for horticultural produce and 50% for non-perishable agricultural produce.

The enactment of these acts has created fear in the minds of farmers and has led to
widespread protests. Despite several rounds of talks, the government and the farmers have
not been able to arrive at a mutually agreeable solution. The farmers fear that increased
private sector participation will lead to exploitation and that their interests will not be
safeguarded. Although the government has made several attempts to pacify the farmers, they
have all been in vain.

Activity 2
1. Briefly enumerate the key features of India’s new farm policies.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

7
 _____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

2. Briefly compare the old agricultural policies with farm laws 2020.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________________

7.5 KEY PLAYERS IN THE AGRICULTURE SECTOR

With growth and increase in production, the active role of middlemen in the movement of
agricultural commodities which specialise in performing marketing roles and are involved in
marketing of products has increased. The number of mediators can be classified into five
groups as follows.

Merchant Middlemen

Merchant middlemen are the ones who take title of the goods they deal in while buying and
selling. Their earningor loss depends on the sale and purchase prices. They are of four types:

a) Wholesalers: Those who buy agricultural commodities in large quantities directly

from farmers or from other wholesalers. They mainly assemble the goods from

8
 various localities and store produce and often release them in the off-season since
they store them in the peak arrival season.

b) Retailers: They buy from wholesalers and sell it directly to consumers in small
quantities. Retailers are the closest to consumers in the marketing channel.

c) Village merchants: The vendors or retailerswho move from village to village to

directly purchase the produce from the cultivators. Village merchants purchase the
produce of those farmers who have either taken finance from them or those who
are not able to go to the market. Village merchants also supply essential
consumption goods to the farmers. They often act as the financers of poor farmers
and sell the collected produce in the nearby market or the villages.

d) Mashakakhores: It is a colloquial term for big retailers who often act as small
wholesalers and majorly deal in fruits and vegetables. They usually sell to bulk
consumers like hotels, para-military units or small retailers/vendors. Over the
years, they have started dealing with all types of customers without the condition
of a minimum quantity and are working like ordinary retailers.

Agent Middlemen

They are basically representatives of clients and do not own the products. They act as
negotiators between sellers and buyers and help them in sale and purchase of products. They
usually receive commission or brokerage on sale. Agent middlemen are of two types:

a) Commission Agents: A commission agent generally operates in the wholesale

market and acts as the proxy of either a seller or a buyer by representing them in
buying and selling of products.
b) Brokers: They act as communicators between buyers and sellers to bring them on
the same platform while facilitating personal services to their clients in the
market. They may claim brokerage from buyer, sellers or both depending upon the
market situation as they simply wander to render their services to clients.

Speculative Middlemen

These middlemen are the ones who buy products at a low price when arrivals are sizable
usually in off-season when prices are high. They take claim of the product and risk associated
with anaim to make a profit on it.

Processors

Processors are the ones who hire agents to buy for them from areas where production is high
either and bring on their businesses either on their own or on custom basis. Agents may also
store the products and may deal with it throughout the year on continuous basis. They often

9
are involved in advertising to generate demand for their managed goods and add form utility
to farm goods.

Facilitative Middlemen

As the name suggests, these middlemen facilitate buying and selling while assisting in the
marketing process. Theyget their income in the form of fees or service charge since most of
them are labourers who help in physical movement of goods and products while loading and
unloading them. Weighmen and graders also fall into this category since they facilitate
weighing of produce and grade products according to different categories. They are often
termed as thecore of the marketing wheel.

Transporters who assist in movement of the produce from one market to another and
communication agencies including advertising agenciesthat majorly help in decision making
about the purchase of goods are a part of this group. Auctioneers who help in exchange of
produce by putting the produce for public sale and bidding by the consumersor buyers are
equally important and help in ironing out the marketing system.

7.6 ROLE AND IMPORTANCE OF AGRICULTURAL MARKETING

Agricultural marketing has a vital role as it helps in encouragingthe process of production and
consumption. It equally helps in accelerating the pace of fiscal developmentsince it is an
important multiplier of agricultural development.

A shift from traditional to modern agriculture system has been a challenge and marketing has
been a big experiment in the entire process. But the role of marketing remains utmost
important. The importance of agricultural marketing is revealed from the following.

Optimization of Resource use and Output Management

The key role of an efficient marketing system is to help the market in pulling down the losses
and accelerating the marketable surplus. The marketing losses often arise due to inefficiency
in processing, storage and transportation of products. An efficient marketing wheel will help
in optimization of resources and output management and a well-thought out system of
marketing can help in even distribution of available stocks. Taking everything into account, it
is indeed a modern approach to sustainable growth and sustains it.

Increase in Farm Income

Reducing the number of middlemen while ensuring higher level of income to restrict the cost
of marketing services and the malpractices is what a good marketing system would aim at
achieving. An efficient system assures improved prices for farm products and encourages
them to invest their surpluses in buying modern inputs so that yield and produce may
increase.

10
Widening of Markets

When a system widens the market by taking the products to remote corners both within and
outside the country is considered profitable since it increases the demand on a continuous
basis while guaranteeing a higher income to the producer.

Growth of Agro-based Industries

Agri-dependant industries rely on the supply of raw materials such as cotton, sugar, edible
oils, food processing and jute on farm produce and therefore require an efficient system to
help in the growth to encourage the overall development process of the economy.

Price Signals

Efficient marketing systems allow farmers in scheduling and arranging their production in
accordance with the needs of the economy. This work is carried out through transmitting
price signals.

Adoption and Spread of New Technology

Adapting to demands and adopting latest technologies and scientific knowledge always leads
to growth. But a technology upgrade requires greaterinvestment and farmers would invest
only if they are guaranteed of ago-ahead at remunerative price.

Employment Creation

This is a system of marketing which focuses on employment generation and engages millions
of people in activities, such as wrapping, packing, transferring, storing and doling out.

Persons like commission agents, brokers, traders, retailers, weighmen, hamals, packagers and
regulating staff are directly employed in the marketing system. Apart from them, several
others are able to look for employment opportunities when dealing with supply of goods and
services.

Addition to National Income

Marketing events are value additions to the product since they increase the nation's gross
national product and net national product.

Improved Living

Development that adds togrowthwhile diminishing poverty of the populationand adds to

foreign exchange while eliminating economic waste should be given special attention. The
development of an efficient marketing for food and agricultural products is also vital to
overall economic development. The marketing system is the key for the success of the
development programmes which are aimed to uplift people.

11
Activity 3
1. Briefly enumerate the key stakeholders in the Agriculture Sector in India.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________________

2. Briefly explain the importance of agricultural marketing.

__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

7.7 SUMMARY

The agriculture sector in India has come a long way since Independence in India. With initial
roadblocks post independence to major reforms in 1960s which escalated growth to a
downfall in mid 1980s and 1990s to a shift in production pattern to food grains to cater to
growing food security issues. Majority of the population in India depends on the agrarian
sector as a prime source of livelihood but shift in patterns of employment and migration to
cities has caused a doubt on the growth prospects of Indian agriculture sector. In 2020, it was
seen that 58% of India’s population depends on agriculture as the primary source of
livelihood and growth of the sector stood at 4 percent. India is one of the leading exporters of
agricultural products globally. A number of government initiatives, investments and

12
interventions have helped the Indian food processing industry to attract Foreign Direct
Investment (FDI) inflow. In the coming years, the Indian agricultural sector aims at doubling
farm income and introducing better infrastructural facilities for irrigation and storage. The
minimum support price also aims at making each sub sector of the agricultural sector self
sufficient.

From 1947-1965, achieving self sufficiency was the key objective and thus improving food
security along with abolishing of the Zamindari System. In 1965, Green Revolution was
launched and a number of innovative techniques, irrigation methods, pesticides and setting up
of key institutions were introduced. To strengthen flow of credit to the agricultural sector,
Banks were nationalised and new financial institutions were set up specifically for the
agricultural sector. In the 1980s, production in the agricultural sector diversified to high value
commodities like poultry, fisheries and dairy. In 1997, a major step was the transition from
the Public Distribution System (PDS) to the Targeted Public Distribution System (TPDS).
The National Agriculture Policy was announced in July 2000 in order to create employment
opportunities for rural population, accelerate the growth of agro businesses, explore and
realise the massive untapped growth potential of Indian agriculture, promote better standard
of living for rural population and to discourage relocation from rural to urban population. In
2007, National Policy for Farmers (NPF) and in 2013 National Food Security Act (NFSA)
was enacted. These acts helped in increasing farmer incomes and guaranteeing nutritional
security by regulating food prices.

The agriculture sector has been well protected by the Essential Commodities Act , 1955
according to which government controls the production, supply, distribution, and pricing of
these commodities to ensure that they are made available to the consumers at fair prices along
with the APMC Act regulated by states. In 2020, new farm reforms were enacted and now
farmers are permitted to sell their produce outside the APMC regulated mandis but it does not
abolish them. It aims to provide lucrative prices to farmers via alternative trade channels. A
national framework for contract farming has also been introduced. The Essential
Commodities Act was also amended in 2020 and it states that certain commodities will be
listed as essential and government will regulate their supply and prices only in cases of war,
famine, extraordinary price rises, or natural calamities. Several commodities including
cereals, pulses, potato, onion, edible oilseeds, and oils have been deregulated.

To increase production of agricultural commodities, a number of players/middlemen have

emerged over the years. Only enhancing production will not be of any help, hence
agricultural marketing as a concept has picked up pace. These intermediaries are primarily
Merchant middlemen acting as wholesalers, retailers, Village merchants and Mashakakhores.
Then there are agent middlemen who cater to activities like negotiations between buyer and
seller for commissions. Speculative middlemen buy products at a low price when arrivals are
sizable usually in off-season when prices are high. Processors are the ones who employ
agents to buy for them from areas where production is high either and carry on their
businesses either on their own or on custom basis. Facilitative middlemen facilitate buying
and selling while assisting in the marketing process. Transporters who assist in movement of

13
the produce from one market to another and communication agencies including advertising
agencies which majorly help in decision making about the purchase of goods are a part of this
group.

Agricultural marketing has a vital role as it helps in Optimization of Resource use and Output
Management, Increase in Farm Income, Widening of Markets, Growth of Agro-based
Industries, Price Signals, Adoption and Spread of New Technology, Employment Creation,
Addition to National Income and Improved Living.

7.8 KEY WORDS

Gross Value Added (GVA): It is an economic productivity metric that measures the
contribution of a corporate subsidiary, company, or municipality to an economy, producer,
sector, or region. GVA thus adjusts gross domestic product (GDP) by the impact of subsidies
and taxes (tariffs) on products.

Foreign Direct Investment (FDI): FDI is an investment made by a firm or individual in one
country into business interests located in another country. Generally, FDI takes place when
an investor establishes foreign business operations or acquires foreign business assets in a
foreign company.

Minimum Support Price (MSP): It is an agricultural product price, set by the Government
of India to purchase directly from the farmer. This is not enforceable by law. By definition,
this rate is to safeguard the farmer to a minimum profit for the harvest, if the open market has
lesser price than the cost incurred.

Legislative Power: It is exercised for giving exemption from licensing requirements.

Green Revolution: It is the Third Agricultural Revolution, is the set of research technology
transfer initiatives occurring between 1950 and the late 1960s that increased agricultural
production worldwide, beginning most markedly in the late 1960s.

Commission: Getting paid for an activity.

Liberalisation: Removal or reduction of restrictions or barriers on the free exchange of

goods between nations.

7.9 SELF-ASSESSMENT QUESTIONS

1. Critically compare the pre and post 2020 Agricultural Reforms in India.
2. Give a roadmap for modifying the existing farm laws and also state their
shortcomings.

14
 3. Suggest changes in the present Agricultural Policy of India to ensure adequate
growth of the country.
4. How will contract farming change the agriculture landscape in India? Discuss in
detail.

7.10 REFERENCES/ FURTHER READINGS

• Mishra, Srijit and D. Narasimha Reddy (2011): Persistence of Crisis in
Agriculture: Need for Technological and Institutional Alternatives (in India
Development Report, 2011, edited by D.M. Nachane, Oxford University Press,
New Delhi).
• Deshpande R S and Shah Khalil (2007), Agrarian Distress and Agricultural
Labour, The Indian Journal of Agricultural Labour, Vol. 50(2), July.
• India Brand Equity Foundation, www.ibef.org

15