Project Report

(Submitted for the Degree of B.Com. Honours in Accounting & Finance under the University of
Calcutta.)

Title of the Project Industrialisation of Indian Agriculture Sector

Submitted by
Name of the Candidate Madhusudan Biswas

C.U. Registration No. 146-1111-0566-20

C.U. Roll No 201146-21-0333

Name of the College Maulana Azad College

Supervised by
Name of the Supervisor: Madhu Sarda

Name of the College: Maulana Azad Colleg

June 2023

Month & Year of Submission

ACKNOWLEDGEMENT

As a student of B.COM HONOURS semester VI of Maulana Azad College of Calcutta

University, I have got the opportunity to do a project on the INDUSTRIISATON OF INDIAN
AGRICULTURE SECTOR. I have tried to Cover all the aspects of the economic growth
specially in agriculture of India. I have done the study on the basis of facts and figures Published
in some books and through surfing. My work would not have been completed successfully.
Without the guidance of assistant Prof. Madhu Sarda ma’am (Department of Commerce). She
has helped me to Plan out my line of action for doing the project and provided me with all other
necessary information’s. I Would like to express my deepest respect to all the faculty members
of my college who have guided me from. Time to time to complete this project work
successfully.
SL no. Details Page no.

Chapter 1 Introduction

1.1 Background of The study

1.2 Need of the study

1.3 Literature Review

1.4 Objective of study

1.5 Data and Methodology

1.6 Limitation of study

1.7 Chapter planning

Chapter 2 Conceptual framework

2.1 Concept and international perspective

Chapter 3 Presentation and Analysis

3.1 Introduction

3.2 Increase farmers profit through

Industrialisation of Indian Agriculture Sector
3.3 The problem related to agriculture industry

3.4 Efficient management of agricultural resources

3.5 Difference between Indian Agriculture Sector and Global agriculture

sector
3.6 Case study – Amul the taste of India

Chapter 4 Conclusion

Bibliography

Annexure Student Certificate

IA
Annexure Student Declaration
IB
1 1Introduction

1.1 Background of study

Healthy, sustainable and inclusive food systems are critical to achieve the world’s development
goals. Agricultural development is one of the most powerful tools to end extreme poverty, boost
shared prosperity, and feed a projected 9.7 billion people by 2050. Growth in the agriculture
sector is two to four times more effective in raising incomes among the poorest compared to
other sectors.

Agriculture is also crucial to economic growth: accounting for 4% of global gross domestic
product (GDP) and in some least developing countries, it can account for more than 25% of
GDP.

But agriculture-driven growth, poverty reduction, and food security are at risk: Multiple shocks –
from COVID-19 related disruptions to extreme weather, pests, and conflicts – are impacting food
systems, resulting in higher food prices and growing hunger. The war in Ukraine has triggered a
global food crisis that is driving millions more into extreme poverty. The World Bank is making
up to $30 billion available as part of a global response to the food crisis.

1.2 Need of study

Accelerating climate change could further cut crop yields, especially in the world’s most food-
insecure regions. Agriculture, forestry, and land use change are responsible for about 25% of
greenhouse gas emissions. Mitigation in the agriculture sector is part of the solution to climate
change.

Current food systems also threaten the health of people and the planet and generate unsustainable
levels of pollution and waste.
 One third of food produced globally is either lost or wasted. Addressing food loss and waste
is critical to improving food and nutrition security, as well as helping to meet climate goals and
reduce stress on the environment.

Risks associated with poor diets are also the leading cause of death worldwide. Millions of
people are either not eating enough or eating the wrong types of food, resulting in a double
burden of malnutrition that can lead to illnesses and health crises. A 2021 report found that
between 720 and 811 million people went hungry in 2020, more than 10% of the world’s
population.

Food insecurity can worsen diet quality and increase the risk of various forms of malnutrition,
potentially leading to undernutrition as well as people being overweight and obese. An estimated
3 billion people in the world cannot afford a healthy diet.Food drives the world; apart from clean
water, access to adequate food is the primary concern for most people on earth. This makes
agriculture one of the largest and most significant industries in the world; agricultural
productivity is important not only for a country’s balance of trade but the security and health of
its population as well.The agriculture sector is the largest source of livelihood in India. The
country is one of the largest producers of agriculture and food products in the world. In 2021-22,
India’s agriculture sector growth rate was estimated to be at 3.9% as compared to the 3.6% in the
previous year. The country produces many crops and food grains such as rice, wheat, pulses,
oilseeds, coffee, jute, sugarcane, tea, tobacco, groundnuts, dairy products, fruits, etc.

1.3 Literature review

• India Brand Equity Foundation (IBEF) an initiative of ministry of commerce and industry
Report of Agriculture and Allied sector
• Ministry of agriculture current year report
• Reserve Bank of India Report
• NABARD
• Niti Ayog
• Economics Times
 • The Hindu

1.4 Objective of Study

• To increase profit of farmers through industrialisation of agriculture sector.

• The problem related to agriculture industry.
• Difference about Indian and global agriculture industry.
• To manage agriculture resources efficiently and minimize cost
• To understand industrialisation of agriculture sector with a case study AMUL – The
Taste of India

1.5 Data and Methodology

DATA TYPE:

Primary Data – Some data collected through analyse and study

Secondary data- The project has been made on the basis of secondary data. Data collected in the
past or

From other parties. It refers to the data that was collected by someone other than the user. It is
done with the

Help of the other bodies.

Source – Secondary Data has been used for the preparation of the project which have been taken
from

Websites, journals and book and newspapers

Tools used- percentages, charts are used for analysis of the data collected.Period of study- One
month have been taken for making the project.

1.5 LIMITATIONS OF THE STUDY

• Due to lack of time detailed study could not be done.
• Much of Project is based on the secondary data
• Analysis is done only of four years period by which it cannot be predicted that in future
the company will be profitable or not.
• Much of data not available for political purposes

1.7 CHAPTER PLANNING:

• The study has been divided into following chapters:

• CHAPTER-1: INTRODUCTION – This chapter covers the Background, need for the
study
• Literature Review, Objectives, Research Methodology, Limitations of the Study and
Chapter Planning.
• CHAPTER-2: CONCEPTUAL FRAMEWORK – This chapter covers the conceptual
framework Of the topic of project.
• CHAPTER-3: PRESENTATION OF DATA, ANALYSIS AND FINDINGS –
Presentation Of Data, Analysis and Findings are present in this chapter.
• CHAPTER-4: CONCLUSION AND RECOMMENDATIONS – In this chapter, the the
conclusion based on the main findings and recommendations are provided.
2 Conceptual Framework

Agriculture is one of the largest and most significant industries in the world, so taking measures
to increase production levels is key for the security and health of a country’s population.Of the
major cereal and vegetable crops, the United States, China, India, and Russia are the top
producers.The United States is the top exporter of agricultural products with $118.3 billion in
exports as of 2019.To increase agricultural productivity, developed countries are turning to
genetically modified seeds to increase yields.On the other hand, in countries where infrastructure
is extremely under-developed, the focus of the government is to develop the infrastructure and
encourage the use of fertilizers.Source: Food and Agriculture Organization of the United
Nations.

Almost every country wants to increase its agricultural productivity, but how they intend to go
about that varies greatly with the country or region in question.

In countries like the U.S., Canada, and Western Europe, there is very little land allowed to go to
waste, and infrastructure like roads are well-developed. Likewise, irrigation is widespread, and
farmers use fertilizer extensively. This has led many countries and farmers to turn to genetically
modified seeds to increase yields and reduce the need for costly (and potentially polluting)
fertilizer and herbicides.

The picture Is much different In Africa and much of South Asia. In these areas, infrastructure is
extremely under-developed and simply getting crops to market (or inputs like fertilizer to the
farms) can be a struggle. Likewise, irrigation infrastructure is lacking, leaving farmers much
more exposed to the variability of weather. Not surprisingly, then, a large focus of governments
in these countries is to try to build roads, improve access to water and encourage the use of
inputs, like fertilizer.

Although agriculture is no longer a major employer in North America or Europe, and food
security is not a preeminent problem for most citizens, it is still a globally vital industry.

As investors saw a few years ago, bad weather and low inventories quickly led the prices of
many food commodities to soar and led to riots and political disturbances in many countries.

On a more positive note, it’s a major source of export earnings for countries across the
development spectrum.

Given the importance of agriculture and the importance of increasing yields, companies that
facilitate higher production should find their products in increasing demand. Whether it’s
agricultural equipment like tractors, inputs like fertilizer and herbicide, or higher-yielding
modified seeds, companies serving the global agriculture market have a large and still under-
served market to address.There are numerous ways of assessing agricultural output, including
sheer tonnage and the dollar volume of the commodities produced. It’s important to look at both,
as it is often the case that commodities critical to the food supply of less-developed countries
don’t show up as high dollar-value crops.

Of the major cereal and vegetable crops, the United States, China, India, and Russia frequently
appear as top producers. It probably won’t surprise readers that China is the leading worldwide
producer of rice, but it’s also the leading producer of wheat and the number two producer of
corn, as well as the largest producer of many vegetables including onions and cabbage.

In terms of total production, the United States is fourth in wheat and first in corn, and second in
soybeans.

There are other important crops, however. Millet is a major crop in much of Africa and Asia, and
India and Nigeria are the leading producers.

Likewise, barley, rye, and beans/pulses are not that important within the United States but are
crucial crops in countries like Russia, Germany, and India

It should not be too surprising that countries like China and India feature prominently on the lists
of top agricultural producers; these countries have large populations and internal food security
(that is, producing enough to feed a nation’s population from internal resources) is a major
priority. A great deal of this production is used internally, though, and the list of the top
exporting countries looks much different.

Country Export in Billions

United States $118
Netherlands $79
Germany $70
France $68
Brazil $55

Source: Food and Agriculture Organization of the United Nations.

Here, again, it is important to note the difference between volume production and high-value
production. The Netherlands is a tiny country; its presence on the list is due to the high value of
flowers and live plants (the Netherlands supplies nearly half of the global total) and vegetables
(the Netherlands is a leading supplier of tomatoes and chilies).

When it comes to the staples that feed the world (rice, corn, wheat, beans, lentils, and animal
proteins), countries like the United States, Germany, Canada, Brazil, and Thailand feature more
prominently.

SL Commodity Leading Percentage of Value in dollars

Country global economy ($ in Billion)
1 Corn United States 26 7.6
2 Food China 9.2 6.6
 3 Palm Oil Indonesia 51 10.4
4 Thailand 34.5 6
5 Soybeans United States 50 16.5
6 Wheat United States 18 5.4

Everyone needs food, yet agricultural production tends to be concentrated in the largest countries
as well as those with the most accommodative climate in their growing areas. Population size is
also crucial because the bulk of agricultural production is still consumed locally or domestically,
despite the rapid growth of international trade in farm products,

The world’s top four food-producing countries—China, India, the U.S., and Brazil—share the
advantages of large populations, ample land area, and climate zones suitable for growing a
variety of crops, though there are also major differences in the role that food production plays in
their economies.Below we’ll examine the agricultural strengths and weaknesses of each of the
four leading food producers.

Many factors influence the level of food production in a country, including land area, size of
population, climate, and the quality of agricultural infrastructure and technology. While the U.S.
is the top exporter of agricultural commodities, other countries including China, India, and Brazil
have emerged as major food suppliers.
3 Presentation and Analysis of INDIAN AGRICALTURAL INDUSTRY

3.1 Introduction

Agriculture plays a vital role in India’s Economy. Agriculture Industry is a Backbone of all
industry. 54.6 of the total workforce is engaged in Agriculture and allied sector activities
(Census 2011) and accounts for 18.6 % of India’s GVA at Current prices during 2021-22. Given
the Importance of the agriculture sector, Government of India has taken several steps for its
development in A sustainable manner. As per the Land Use Statistics 2018-19, the total
geographical area of the country is 328.7 million hectares, of which 139.3 million hectares is the
reported net sown area and 197.3 million hectares is the gross cropped area with a cropping
intensity of 141.6%. The net area sown works out to be 42.4% of the total geographical area. The
net irrigated area is 71.6 million hectares.
Regional Rural Banks

One of the essential sources of farm finance is regional rural banks, which are scheduled
commercial banks owned by the government. They were set up based on the recommendations
of the Narasimhan Working Group in 1975, followed by the Regional Rural Banks Act, 1976.

Micro Finance

Micro finance is another option that farmers who don’t have access to credit via banks and
financial institutions or those who don’t have adequate collateral can fall back on. Micro finance
involves small loans with no collateral and is provided by Microfinance Institutions (MFIs).

Non-Banking Financial Companies

Apart from all these various sources of agricultural finance in India, there is one more significant
source – the NBFC. Backed by online and easy-to-use app-based platforms, an NBFC takes
banking and credit to those farmers not touched by mainstream banking.

Role of NABARD

Among the sources of farm finance to banks and institutions in India is the National Bank for
Agriculture and Rural Development (NABARD). NABARD offers refinance to regional rural
banks, state co-operative banks, district central co-operative banks and state governments as
well.

Non-institutional Sources of Agricultural Finance in India

Moneylenders, family and friends, traders, landlords or commission agents are non-institutional
sources of agricultural finance.

Moneylenders, Agents, Traders and Landlords

Moneylenders have for decades served as the source for many agricultural families in India’s
rural credit landscape. However, the interest rates are high and moneylenders have in many
instances pushed families into a debt trap. The same applies to landlords who also charge high
and unsustainable rates of interest. Commission agents or traders also offer finance to farmers
but interest rates are relatively high when compared to institutional sources of farm finance.

An easy alternative is to look for small business loans, available on Bajaj Markets, at convenient
interest rates. What’s more, the loan can be availed online in a hassle-free manner.

Relatives and Friends

Although relatives can prove to be of help, they may help us in case of financial emergencies and
not frequently.

Agriculture is a crucial sector of the country’s economy and contributes to employment and the
nation’s GDP. The importance of farm credit and financing is vital for adopting the best
agricultural practices and boosting production. Although non-institutional sources of farm
income have been available for decades now, interest rates are high and there is a lack of proper
documentation. Customised loan products, made available by NBFCs empowered by technology,
have ensured that farmers now have access to institutional credit.

Agriculturists can now opt for loans made available by commercial banks, rural banks, land
development banks, microfinance institutions or NBFCs to avail loans. Business loans, available
on Bajaj Markets from various partners, come with affordable rates of interest and zero
collateral. These loans are available at the click of a button and come with flexible repayment
options.

3.6 Business Environment Analysis of Amul The Taste of the IndiaP1⁹

• ROBUST DEMAND

Factors contributing to the sharp growth in demand for processed foods include increasing
urbanization, increasing disposable incomes, changing spending patterns/ priorities, the
emergence of nuclear families, and the growing need for convenience foods in dual-income
nuclear families.

• ATTRACTIVE OPPORTUNITIES

Entry of foreign players has been key to sustainable growth in some sectors such as dairy.

Trends indicate a sharp increase in on-the-go eating, snacking in between meals, switching to
healthier eating alternatives, pre-cooked ready-to-eat meals, and increasing consumption of
organic foods. This has led to a host of new opportunities in the consumer foods market for both
domestic and international companies to build a stake in this fast-growing processed food
market.

• POLICY SUPPORT

Online, Competitive, Transparent Bidding System with 1.74 crore farmers and 2.39 lakh traders
put in place under the National Agriculture Market (e-NAM) Scheme.

A new sub-scheme of PM Matsya Sampada Yojana with a targeted investment of Rs. 6,000 crore
(US$ 729 million) to be launched to further enable activities of fishermen, fish vendors, and
micro & small enterprises, improve value chain efficiencies and expand the market.

• COMPETITIVE ADVANTAGE

India has access to several natural resources that provides it a competitive advantage in the food
processing sector. Due to its diverse agro-climatic conditions, it has a wide-ranging and large
raw material base suitable for food processing industries.

• MARKET SIZE

According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by
2025. Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of
the sales. As per First Advance Estimates for FY23 (Kharif only), total foodgrain production in
the country is estimated at 149.92 million tonnes. Rapid population expansion in India is the
main factor driving the industry. The rising income levels in rural and urban areas, which have
contributed to an increase in the demand for agricultural products across the nation, provide
additional support for this. In accordance with this, the market is being stimulated by the
growing adoption of cutting-edge techniques including blockchain, artificial intelligence (AI),
geographic information systems (GIS), drones, and remote sensing technologies, as well as the
release of various e-farming applications.

3.7 SOME LEADING AGRICULTURAL COMPANY IN INDIA

1. DuPont India

The company founded in 1802, is among the oldest companies for agriculture in India. Based in
Gurgaon, India, the company has expanded its control to over 90 countries apart from India. The
company primarily produces all the agro-based products. Some of the products that the company
produces are pesticides, seeds and insecticides. It is also involved with the production of
healthcare services for the farm animals. DuPont tries to keep on bringing innovations to its
products so that it can supply with the best.

2. Rallis India Limited

Founded in 1815, Rallis India Limited is a subsidiary of the Tata Group. The company is
involved in producing all kinds of agricultural products. From providing seeds, seed chemicals,
fertilizers to pesticides, Rallis is the one-stop destination for all agriculture-based requirements.
The company is also associated with several other services like Agri services, plant growth
nutrients and contract manufacturing to name. It is believed that almost 5 million farmers across
the nation have been using the services in association with Rallis India Limited.

3. Nuziveedu Seeds Limited

Headquartered in Hyderabad, Telangana Nuziveedu Seeds Limited was founded in the year
1973. The company is one of the biggest manufacturers of seeds in India. The company is also
engaged in promoting various socio-economic welfare programs. It engages in creating more job
opportunities for the youth and creating sustainable agriculture a priority.

4. Lemken India Agro Equipments Private Limited

Headquartered in Nagpur, Maharashtra, the company is the newest in the industry. The company
manufactures machinery needed for the protection of crops, cultivation of soil and sowing
majorly. It is involved in producing the machinery necessary for the various agricultural
processes. Due to its hard work and diligence towards providing its customers with the best, the
company has managed to set its foot in 45 other nations worldwide.

5. Advanta Limited

Established in 1994, the company is one of those to have made a name for itself in the top 10
agriculture companies of the nation presently. Advanta is headquartered in Telangana, India. The
company is a global leader for grains and forges and is listed in the NSE and BSE stock
exchange indexes. The company intends on accomplishing the two basic sustainable
development goals, that is, no poverty and no hunger.

6. Monsanto India

Established the year 1901, in Missouri, USA, has its Indian headquarter in Mumbai. The
company is primarily involved in seed manufacturing and the production of pesticides and other
crop protection substitutes. The company provides a variety of seeds and weed management
services. One of the basic assistance that the company provides to the farmers is in crop
management and related issues. The diligent effort of Monsanto towards the farmers worldwide
is what makes them one of the most trusted among the farmer community across the globe.

7. Poabs Organic Estates

Based in Kerala, the company has been creating wonders since the year 1889. The company is
one of the leading firms in agro-based products. The major production of the company is to focus
on tea and coffee production. It is a self-sustained unit operating successfully in and across India.

8. National Agro-Industry

Operating from Ludhiana, Punjab, the company was set up back in the year 1970. The company
focuses on agro-based equipment and has been making sure to provide the best to its customers.
It has been making uses of innovative techniques of farming to reduce the time and energy
involved in the production of the crops. The National Agro-industry is well known to make use
of progressive agricultural practises to make the work easier for the agriculture sector of the
nation.

9. Godrej Agrovet Limited

Founded in the year 1990, Godrej Agrovet Limited is a subsidiary of the well known Godrej
company. The company is one of the top agro products manufacturers in the country and hence
been featured in the top ten list. It also produces bird and animal food, poultry products, and
palm oil plantation among others. The company creates innovative methods for green products
keeping quality concerns as the foremost priority.
 10. Rasi Seeds

Founded in 1973, the company has been doing its best since then. The company is engaged with
producing a variety of seeds from cotton, millet, maize to a lot more. It is renowned for its
expertise in farming methods and in providing the best quality of seeds.
r problem of agriculture industry

1. Inequality in land distribution

The seemingly abundance of net sown area of 141.2 million hectares and total cropped area of
189.7 million hectares (1999-2000) pales into insignificance when we see that it is divided into
economically unviable small and scattered holdings.

The average size of holdings was 2.28 hectares in 1970-71 which was reduced to 1.82 hectares in
1980-81 and 1.50 hectares in 1995-96. The size of the holdings will further decrease with the
infinite Sub-division of the land holdings.

In India today also has some farmer who are in land tenure system and don’t hold self owned
land.

The problem of small and fragmented holdings is more serious in densely populated and
intensively cultivated states like Kerala, West Bengal, Bihar and eastern part of Uttar Pradesh
where the average size of land holdings is less than one hectare and in certain parts it is less than
even 0.5 hectare.

In punjub, average holing size is 10 hector or more ,there has so many rich farmer.

2. Seeds

Seed is a critical and basic input for attaining higher crop yields and sustained growth in
agricultural production. Distribution of assured quality seed is as critical as the production of
such seeds. Unfortunately, good quality seeds are out of reach of the majority of farmers,
especially small and marginal farmers mainly because of exorbitant prices of better seeds.

3. Poor technology

The farmers in India have been adopting orthodox and inefficient method and technique of
cultivation. It is only in recent years that the Indian farmers have started to adopt improved
implements like steel ploughs, seed drills, barrows, hoes etc. to a limited extent only. Most of the
farmers were relying on centuries old. Wooden plough and other implements. Such adoption of
traditional methods is responsible for low agricultural productivity in the country.

4. Weather Fluctuations:

Indian agriculture is continuously subjected to instability arising out of fluctuations in weather

and gamble of monsoon. As a result, the production of food-grains and other crops fluctuates
widely leading to continuous fluctuation of prices of agricultural crops. This has created the
element of instability in the agricultural operation of the country.

5. Labour Problem

Agricultural labourers are the most exploited unorganized class in the rural population of the
country. From the very beginning landlords and Zamindars exploited these labourers for their
benefit and converted some of them as slaves or bonded labourers and forced to continue the
system generation after generation. All these led to wretched condition and total deprivation of
the rural masses.

After 50 years of independence, the situation has improved marginally. But as they remain
unorganized, thus economic exploitation of these workers continues. The level of income, the
standard of living and the rate of wages remained abnormally low.

Total number of agricultural workers has increased from 55.4 million in 1981 to 74.6 million in
1991 which constituted nearly 23.5 per cent of the total working population of the country. This
increasing number has been creating the problem of surplus labour or disguised unemployment,
which in turn is pushing (heir wage rates below the subsistence level

6. Market Failure

Agriculture often appears to be one of the most difficult industries, frequently leading to some
form of market failure. In the EU and US, agriculture is the most heavily subsidised industry, yet
despite the cost of the subsidy it fails to address many issues relating to agriculture some of
examples are
 • Volatile Prices / volatile supply
• Low and volatile income for farmers
• Environmental costs of intensive farming (negative externalities)
• Agriculture key component of rural life (positive externalities)
• Monopsony power of food purchasers

7. Agriculture Marketing

Agricultural marketing still continues to be in a bad shape in rural India. In the absence of sound
marketing facilities, the farmers have to depend upon local traders and middlemen for the
disposal of their farm produce which is sold at throw-away price. In most cases, these farmers
are forced, under socio-economic conditions, to carry on distress sale of their produce. In most of
small villages, the farmers sell their produce to the money lender from whom they usually
borrow money. According to an estimate 85 per cent of wheat and 75 per cent of oil seeds in
Uttar Pradesh, 90 per cent of Jute in West Bengal, 70 per cent of oilseeds and 35 per cent of
cotton in Punjab is sold by farmers in the village itself. Such a situation arises due to the inability
of the poor farmers to wait for long after harvesting their crops.

In order to meet his commitments and pay his debt, the poor farmer is forced to sell the produce
at whatever price is offered to him. The Rural Credit Survey Report rightly remarked that the
producers in general sell their produce at an unfavourable place and at an unfavourable time and
usually they get unfavourable terms.In the absence of an organised marketing structure, private
traders and middlemen dominate the marketing and trading of agricultural produce. The
remuneration of the services provided by the middlemen increases the load on the consumer,
although the producer does not derive similar benefit.

Many market surveys have revealed that middlemen take away about 48 per cent of the price of
rice, 52 per cent of the price of grounduts and 60 per cent of the price of potatoes offered by
consumers.In order to save the farmer from the clutches of the money lenders and the middle
men, the government has come out with regulated markets. These markets generally introduce a
system of competitive buying, help in eradicating malpractices, ensure the use of standardised
weights and measures and evolve suitable machinery for settlement of disputes thereby ensuring
that the producers are not subjected to exploitation and receive remunerative prices.

8. Inadequate storage Facility

Storage facilities in the rural areas are either totally absent or grossly inadequate. Under such
conditions the farmers are compelled to sell their produce immediately after the harvest at the
prevailing market prices which are bound to be low. Such distress sale deprives the farmers of
their legitimate income

The Parse Committee estimated the post-harvest losses at 9.3 per cent of which nearly 6.6 per
cent occurred due to poor storage conditions alone. Scientific storage is, therefore, very essential
to avoid losses and to benefit the farmers and the consumers alike.

9. Inadequate transport:

One of the main handicaps with Indian agriculture is the lack of cheap and efficient means of
transportation. Even at present there are lakhs of villages which are not well connected with main
roads or with market centres.

Most roads in the rural areas are Kutcha (bullock- cart roads) and become useless in the rainy
season. Under these circumstances the farmers cannot carry their produce to the main market and
are forced to sell it in the local market at low price. Linking each village by metalled road is a
gigantic task and it needs huge sums of money to complete this task.

10. Scarcity of capital:

Agriculture is an important industry and like all other industries it also requires capital. The role
of capital input is becoming more and more important with the advancement of farm technology.
Since the agriculturists’ capital is locked up in his lands and stocks, he is obliged to borrow
money for stimulating the tempo of agricultural production
The main suppliers of money to the farmer are the money-lenders, traders and commission
agents who charge high rate of interest and purchase the agricultural produce at very low price.
All India Rural Credit Survey Committee showed that in 1950-51 the share of money lenders

Stood at as high as 68.6 per cent of the total rural credit and in 1975-76 their share declined to 43
per cent of the credit needs of the farmers.

This shows that the money lender is losing ground but is still the single largest contributor of
agricultural credit. Rural credit scenario has undergone a significant change and institutional
agencies such as Central Cooperative Banks, State Cooperative Banks, Commercial Banks,
Cooperative Credit Agencies and some Government Agencies are extending loans to farmers on
easy terms.

11. Highly Regulated sector

Equally critical is the fact that agriculture is highly regulated that imposes restrictions on
movement of agricultural products. Among these, the more important can be identified as:

(i) Compulsory levies (e.g. sugarcane, cotton);

(ii) Licensing requirement (e.g. exports of agricultural products), and
(iii) Internal trade restrictions (i.e. inter-state restrictions).

To sum up, although during the last six decades impressive gains have been made in agricultural
production in some parts of the country, much still remains to be done to establish a balanced
progress

12. Weak linkages between Agriculture and Industry:

Although the inter-dependence of the agricultural and the industrial sectors has increased over
the years, the strength of linkage between the agricultural and the manufacturing sectors has
weakened. It must be realised that the majority of the population still depending on agriculture,
and with a high rural bias in the culture of the population, weakening of this linkage is a serious
matter of concern.
Possible solution of Indian Agriculture Industry

1. Storage

There are huge number of agencies engaged in warehousing and storage activities. The Food
Corporation of India (F.C.I.), the Central Warehousing Corporation (C.W.C.) and State
Warehousing Corporation are among the principal agencies engaged in this task. These agencies
help in building up buffer stock, which can be used in the hour of need. The Central Government
is also implementing the scheme for establishment of national Grid of Rural Godowns since
1979-80.

This scheme provides storage facilities to the farmers near their fields and in particular to the
small and marginal farmers. The Working Group on additional storage facilities in rural areas
has recommended a scheme of establishing a network of Rural Storage Centres to serve the
economic interests of the farming community

2. Mechanism of production

There is urgent need to mechanise the agricultural operations so that wastage of labour force is
avoided and farming is made convenient and efficient. Agricultural implements and machinery
are a crucial input for efficient and timely agricultural operations, facilitating multiple cropping
and thereby increasing production.Some progress has been made for mechanising agriculture in
India after Independence. Need for mechanisation was specially felt with the advent of Green
Revolution in 1960s. Strategies and programmes have been directed towards replacement of
traditional and inefficient implements by improved ones, enabling the farmer to own tractors,
power tillers, harvesters and other machines.
A large industrial base for manufacturing of the agricultural machines has also been developed.
Power availability for carrying out various agricultural operations has been increased to reach a
level of 14 kW per hectare in 2003-04 from only 0.3 kW per hectare in 1971-72.

This increase was the result of increasing use of tractor, power tiller and combine harvesters,
irrigation pumps and other power operated machines. The share of mechanical and electrical
power has increased from 40 per cent in 1971 to 84 per cent in 2003-04.

Uttar Pradesh recorded the highest average sales of tractors during the five year period ending
2003-04 and/West Bengal recorded the highest average sales of power tillers during the same
period.

Strenuous efforts are being made to encourage the farmers to adopt technically advanced
agricultural equipments in order to carry farm operations timely and precisely and to economise
the agricultural production process

3. Highly Regulated Sector:

Equally critical is the fact that agriculture is highly regulated that imposes restrictions on
movement of agricultural products. Among these, the more important can be identified as:

(I) levies (e.g. sugarcane, cotton);

(II) Licensing requirement (e.g. exports of agricultural products)
(III) Internal trade restrictions (i.e. inter-state restrictions).

There are so many law that is the problem for industrialize the agriculture sector. To sum up,
although during the last six decades impressive gains have been made in agricultural production
in some parts of the country, much still remains to be done to establish a balanced progress. The
Government should analyse the business environment and establish a farmer friendly law.

4. Motivate to Agriculture start up

Government plans to motivate students and youth committee to start a agriculture and
manufacturing or food proccing company should give adequate scholarship and stipend to
increase India ‘s GDP. Efficient resource management can lead to decrease waste of agriculture
industry.
 5. Agriculture Insurance

India is having one of the largest agriculture depending population in the world. Agriculture is a
high-risk profession as most of the farmers depend on rain and the general weather conditions to
grow their crops. Hence to protect the framers, the government has been following a prudent
agricultural policy including the agricultural insurance policy.

6. Communication

Actually in India, the Government want to help farmers and for that so many best schemes are
there but being uneducated farmers cannot access this this schemes. Government should start
camping program with student who are interested about industrialisation of Indian Agriculture to
educate farmers to become industry Specific and increase production with scientific rule and
how to avoid domestic lenders and clever intermediator. Farmers should create a community or
club to help each other.

7. Agriculture Finance

Government or Entrepreneurs should provide solutions for agriculture lenders to access to long
term finance, to digitize and green their services, and to manage agriculture risks, and grow
agriculture asset classes. Government or Entrepreneurs also provide technical assistance to
reform and build capacity of public financial institutions and leverage Fintechs and digital
platforms to advance agriculture finance.

Conclusion

The current phase of modernisation of Indian agriculture has thrown up some challenges, which
cannot be ignored anymore. Unless these are squarely faced and comprehensive solutions
worked out, the growth of the economy may be up against insurmountable barriers.
As per the 2014 FAO world agriculture statistics India is the world’s largest producer of many
fresh fruits like banana, mango, guava, papaya, lemon and vegetables like chickpea, okra and
milk, major spices like chili pepper, ginger, fibrous crops such as jute, staples such as millets and
castor oil seed. India is the second largest producer of wheat and rice, the world’s major food
staples

Bibliography
 www.rbi.com
 www.nabard.com
 www.worldbank.org
 www.imf.org
 www.economicstimes.com
 www.economicshelp.org
 www.yourarticle.com
Annexure- IA

Supervisor’s Certificate

This is to certify that Mr.………Madhusudan Biswas……….. a student

Of B.Com. Honours in Accounting & Finance of …………Maulana Azad College…………..

(Name of the College) under the University of Calcutta has worked

Under my supervision and guidance for his/her Project Work and prepared a Project Report with
the

Title ………………………………………Industrialisation of Indian Agriculture

Sector……………………………………………..

Which he/she is submitting, is his/her genuine and original work to the best of my knowledge.

Signature
Place: Kolkata

Name: Assistant professor Madhu Sarda

Date:

Designation: Assistant professor

Name of the College Maulana Azad College

Annexure- IB

Student’s Declaration

I hereby declare that the Project Work with the title (in block letters) ……………
INDUSTRIALISATION OF INDIAN AGRICULTURE
SECTOR………………………………………………………

Submitted by me for the partial fulfilment of the degree of B.Com. Honours in Accounting &

Finance / Marketing / Taxation / Computer Applications in Business under the University of

Calcutta is my original work and has not been submitted earlier to any other University
lnstitution for the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in this

Report from any earlier work done by others or by me. However, extracts of any literature which

Has been used for this report has been duly acknowledged providing details of such literature in

The references.
Signature

Name: Madhusudan Biswas

Address: Kakdwip , Pachim Gangadharpur

Registration No. 146-1111-0566-20

Place: Kakdwip

Date: