Transcript Chapter 33
C HAPTE R 4 AGRICULTURE: ECONOMICS AND POLICY Aaaaaaa Agricultural Inputs Chapter Outline: 1 Agriculture Labor 2 Fertilizers and related problems 3 High Yielding Variety (HYV) Seeds 4 Irrigation Water 5 Pesticides & Insecticides 5 Farm Technology 1. Agriculture Labour: • Human resources who are providing their physical or mental services in the process of cultivation for remuneration represent agri. labor. • The cultivator who himself cultivates the land directly or he is engaged in cultivation of land indirectly by the people who have neither capital nor land may be given the name of agri. labor. Properties of Agri. Labor The following are the characteristics of agri. labor: 1. Lack of Skill and Technical Training: The majority of agri. labor lacks skill and technical training. This is due to poverty and ignorance. However, those who are concerned with family labor and they have their own land they get the skill and technical knowledge on the basis of experience. But on the whole the agri. labor are illiterate and unskilled. As a result, their productivity remains low. Properties of agri. labor….. continued 2. Seasonal Employment: The agri. labor does not remain employed for the whole year. This is due to seasonal nature of agri. produce. In certain parts of the year the agri. labor are under-pressure as the demand for labor is higher during the months of April to June because of harvesting of wheat while they remain unemployed before sowing of new harvest. Properties of agri. labor….. continued 3. Division of Labor: In case of industry, the division of labour is possible i.e. the labor can be divided for each separate line of production. But it is not possible to follow the technique of division of labor in agriculture. 4. Low level of wages: The wages earned by agri. Labor are normally lower as compared with wages earned in other sectors of the economy. 5. Diversity of Labor: The supply of labor in agri. Sector comprises all genders men, women, children etc. this is observable during harvesting wheat or sowing of rice etc. on the other hand, the supply of industrial labor mostly consist of male. Properties of agri. labor….. continued 6. Lack of Trade Unions and Collective Bargaining Power: In industrial sectors the labor are united in the form of trade unions. They protect their rights. They make collective bargaining. On the contrary, the agri. Labor in developing countries are hardly organized in unions. They fail to make collective bargaining. In this way, they fail to reap the due benefits. 7. Less Mobility: Agri. Labor are associated with their native regions, localities and homes. They are hardly mobile to other areas. As a result, there is abundance of labor in villages while there is shortage of labor in cities. Properties of agri. labor….. continued 8. Timing and Regulation of Work: The industrial labor has to follow the timing and rules and regulation. He often gets the wages on the basis of hours and days worked. On the other hand the labor working in rural sector does not have to follow specific rules and regulation. Agri. Works like harvesting in summer and watering in winter represent the tough job. As a result, the nature of agri. Work is difficult than non-agri. works. Types of Agri. Labor 1. Family Labor: This type of agri. Labor is concerned with the head of the family and other members of the family. These people fully or partially work on their farms. The head of the family plays dual role i.e. he is not only labor but also the entrepreneur of the farm. The labor who work on small farms are concerned with family labor. Alongwith increase in size of land, the number of family labor decreases. The members of agri. family like women and children supervise the harvest and look after the cattle. Again they help their men in threshing of rice and wheat, crushing of sugar-cane and picking of cotton. Types of agri. labor….. continued 2. Permanent Hired Labor: They consist of the labor having no or less land. Their parents may be the tenants. These labor are employed on an informal contract which may be for a year or for a season. These labor are employed for ploughing, clearing the water-courses and cutting of cattle feed etc. 3. Temporary and Casual Labor: The temporary labor are employed for short period. They are mostly on daily wages. They are employed at the time of sowing, harvesting, picking of cotton and cutting of sugar-cane. They are land deprived labor. They also move from one area to other area in search of job. This mobility remains confined in the villages. The demand for such labor depends upon type of farming prevailing in a locality. Why Supply of Agri. Labor is more than Demand for Agri. Labor Reasons for Excess Supply of Agri. Labor The supply of agri. labor is far more than their demand. It is due to the following reasons: 1. Excessive increase in rural population 2. Lack of employment opportunities in cottage and small scale industries in rural areas. 3. The sever poverty in rural areas which hampers people to get education and skill. 4. Because of capital intensive technology in agriculture like tractors, harvesters and threshers, the supply of labor has exceeded the demand for labor. Reasons for excessive supply of agri. labor….. continued 6. The lower per acre yield which results in lower incomes of the farmer leading to lower investment and lower demand for labor. 7. The agri. Activities are mostly seasonal in the country. Therefore, the farmers have ample time or they have excess supply. 8. The wages given to agri. Labor are far less than the wages of labor from other sectors. The agri. Labor get grains in addition to cash wages. This may compensate the rise in cost of living. When the rural labor move from villages to cities they have to face certain additional costs. In such state of affairs the real wages in cities remain lower even if the monetary wages are higher. Accordingly, the labor are hesitant to move from rural areas to urban towns. Reasons for excessive supply of agri. labor….. continued 9. There is a heavy proportion of uncultivated lands. The lands are prey to salinity and water-logging. The cultivation is not possible in hilly tracts and deserted areas. The droughts and floods badly affect the agri. Sector. As a result of all such phenomenon we fail to get fairly larger level of output from our fields. Again, the demand for rural labor remains less than its supply. Suggestions to remove rural unemployment 1. The rising population should be checked. 2. The cottage & small scale industries be developed in rural areas, particularly whose raw material is available from villages. 3. The green revolution be restored in the country. The agri. Lands be used effectively. The use of high-yielding varieties of seeds, fertilizers and pesticides be increased. They will increase the agri. production. The incomes of the farmers will go up. They will increase investment. In this way, the demand for labor will increase. 4. The uncultivated Lands be utilized in the country. The waterlogging and salinity be checked. The fragmentation and subdivision of holding be stopped. They all will increase the demand for labor and unemployment will come down. 2. Fertilizers • In order to achieve a greater increase in agriculture productivity, the use of fertilizers is very much inevitable. Moreover, the success of HYVs also depends upon the greater use of fertilizers in the fields. • Fertilizers are used for removing the deficiency of Nitrogen and Phosphate. • The farmers have started realizing the need for fertilizers and the fertilizers have got the status of an important agriculture input. But in connection with use and production of fertilizers the farmers have to face the following problems: • There exists the lack of appropriate balance in the use of different types of fertilizers. The farmers mostly use nitrogenous fertilizers without paying due attention to the use of phosphates fertilizers. The unfavorable ratio of phosphatic and nitrogenous fertilizers is also responsible for decrease in wheat production. The desirable ratio is 2:1 or 3:1 depending upon the type of soil. • The production of fertilizers is lagging behind the consumption of fertilizers. Accordingly, fertilizers are imported by spending a big sum which increase the prices of fertilizers. Therefore, there is a big need to raise the domestic production of fertilizers and it should be made available to the farmers at the reduced prices. • The use of fertilizers will be beneficial only if the HYV seeds and sufficient amount of water is available. The failure to get seeds and adequate water will reduce the efficiency of fertilizers. Thus, all the hindrances in the way of availability of seeds and water will have to be removed. • The financial weakness of the farmers is also an obstacle in the way of the use of fertilizers. More particularly, the poverty of the farmers have checked the farmers to use fertilizers. Therefore, the policy of subsidized fertilizers may be reinstated for the farmers. • Fertilizer supplies are not available at the proper time and at convenient locations. The dealers and other concerning the distribution delay the supply of fertilizers in order to extract higher black market prices. 3. High Yielding Varieties (HYVs) Seeds • The HYV seeds have been found responsible for bringing remarkable progress in the field of agriculture products. The modern and improved seeds are not only high yielding but they do have resistance against pests. • Now, a days, in addition to wheat and rice, the HYVs have also been invented in case of sugarcane and cotton etc. the success of HYV seeds depends upon: – Greater provision of water – Greater commitment of fertilizers – Constant research and effort High Yielding Verities (HYVs) Seeds….. continued. • Thus, there is a dire need to introduce the improved seeds, making them available to the farmers at a proper time at the cheaper price and subsidized rates and breaking the monopoly of big landlords over the new and improved varieties of seeds. Water • Water is considered something very important for every crop. The use of modern inputs like HYV seeds and fertilizers have greatly enhanced the importance of water. • The existing systems of water-supply are consisting of: – canals, – tubewells – and the rains. • Unluckily, in respect of water and its supply to the farmers at the farm, the farmers have to face a lot of problems. Such problems are contributing negatively in the agricultural development. They are as: – The irrigation through canals is a major source of water supply to the farmers but such water supply depends upon the waterreservoirs at different barrages and dams. The shortage of water due to the drought etc badly reduce the water reservoirs. As a result, the farmers have to face the situation of inadequate water. Again, the irrigation through canals have led to enhance the problem of water-logging and salinity. The tail-enders are the hard hit in respect of water availability. The floods are attached with the surface water. The floods not only affect the agricultural land but the rural population also have to be the victim of such natural vagary. – Again, the canals are based on rivers. In country, the lack of rivers is also a major problems in various countries. 4. Pesticides and Insecticides • Most of the LDCs are not only have warm weather but so many regions remain under the grip of humidity. As a result, crops are open to different types of pests and diseases. For example, cotton crop had to be the pray of “Curl Virus”, this not only decreased the incomes of the farmers, but our textile industry suffered a lot which mainly depends upon the cotton crop. • Thus the attacks of different types of diseases and pests are maliciously destroying all the efforts to raise agricultural production. Accordingly, there is a big need to launch anti-pest programmes. • In this connection, the aerial and ground sprays be accelerated. They have been reported insufficient in quantity and often of inferior type of sprays. – Pesticides are chemicals and toxic – Application techniques are very poor and not standardized. – The general awareness level is very low for pest identification and for their appropriate solutions. – Spray machinery is faulty and not standardized. – There is cut-throat competition amongst local-cum-national and multi-national companies. – The adulteration is commonly observed – Lack of data regarding pests, damaged/affected parts of plant with the companies selling agro-chemicals. – Again, the use of pesticides has proved to be harmful for human beings also. The agronomists are of the view that the efforts should be made to manage the pest through nonchemical control tactics. Farm Mechanization: Mechanization of farms means the use of machines for conducting agricultural operations, replacing the traditional methods which involve human and animal labour. Farm mechanization implies the use of mechanical technology in the varied farming operations like sewing, harvesting, thrashing, leveling, watering, spraying, weeding etc. etc. The farm mechanical technology includes: Chemical Technology – Plant protection measures Hydrological Technology --- Tube wells Mechanical Technology --- tractors, thrashers, bulldozers When all the farming operations are done by machines displacing animal labour, the mechanization is said to be Complete mechanization. When machines are used along with tradition methods of cultivation, the mechanization is said to be Partial mechanization. Arguments for Farm Mechanization: • Increase in volume of production: The use of modern technologies has resulted in the increased volume of agri. production. • Reduces dependence upon animal power: Farm Mechanization reduces dependence upon animal power which are slow in operation. • Diversion of land from growing fodder: Farm Mechanization makes it possible to divert the land used for growing fodder for animal power. The same land can be brought under cultivation for growing food and nonfood crops. Arguments for Farm Mechanization: • Greater area under cultivation: Farm Mechanization saves labour, makes the job for leveling and preparation of land easy and helps in bring more land under cultivation. • Timely Water supply, spray etc: The timely availability of water supply from tubewells, the use of new package of modern inputs has been made possible only with the help of mechanization. • Provides off-farm employment: it provides off-farm employment to the farmer. • Self-sufficiency in food: Mechanization of agriculture helps in achieving self-sufficiency and surpluses in food and other crops. Arguments against Farm Mechanization: The main arguments advanced against mechanized farming are as follows: • Increase in unemployment: The use of mechanized technology displaces labour and leads to increase in farm unemployment in the country. • Problems of urbanization: The migration of labour from the mechanized farm sector to the cities creates problems of urbanization. • Social disparity: Farm mechanization is basically capital intensive and has a big farmer bias. It, therefore, creates social disparity. Arguments against Farm Mechanization: • Diversion of Capital: Farm mechanization diverts capital from non-agricultural sector where there is already abundant labour and the farming operation are labour intensive. • Cattle population surplus: mechanization has rendered a large number of cattle population surplus and unnecessary. Causes of poor adoption of farm technologies Following are the problems regarding adoption of modern technologies: 1. Illiteracy of the farmers always serve an obstacle in the way of adoption of modern technologies. 2. The farmers, particularly small farmers are very much conservative. hence they are not prepared to accept the new ideas and challenges. 3. The situation of fragmentation and sub-division of holdings also restricts the use of modern technologies on the farms. Causes of poor adoption of farm technologies 4. The small farmers have reduced or marginal financial resources. Accordingly, they fail to make investment attached with new technologies. The agri. Banks and commercial banks are often reluctant to lend to farmers. The government do not seriously think to assist the farmers. As a result, the insemination of modern technology remains limited, particularly as far as the small farmers are concerned. Suggestions Regarding adoption of farm technologies 1. The agri. Education and extension services be enlarged. 2. The easy credit facilities be provided to the farmers so that they could purchase technologies and chemicals etc. 3. Price support system be implemented effectively, as it would increase the incomes of the farmers. Hence they would be able to acquire modern technologies. 4. The sub-division of holdings be checked as it is a big obstacle in the way of application of modern technology. 5. The farmers be given incentives and subsidies in connection with the use of modern inputs, fertilizers, tractors, tubewells and harvesters etc. Thank You