Answer

Agriculture in India has undergone significant changes due to economic liberalisation and technological advancements. Liberalisation policies have expanded market access and trade opportunities, while technological innovations have enhanced productivity and precision farming. However, these developments have also introduced new challenges, including inequality in resource access and the need for policies that address both traditional farming needs and modern agricultural trends.

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How Agriculture is Shaped by Economic Liberalisation and Technological Advancement:

Economic Liberalisation

• Increased Market Access: Economic liberalisation opened up global and domestic markets for Indian farmers, enabling them to export a diverse range of crops and boost incomes.
  For example: The government’s 1991 liberalisation reforms facilitated higher agricultural exports, helping India become a major exporter of rice and wheat.
• Growth of Agri-Businesses: Liberalisation has fostered the rise of private agri-businesses, enhancing the supply chain for inputs like seeds, fertilisers, and machinery, while promoting contract farming.
  For example: Companies like ITC have implemented contract farming models in states like Madhya Pradesh, offering farmers assured prices and access to inputs.
• Shift to High-Value Crops: Farmers are increasingly shifting to high-value crops, such as fruits, vegetables, and floriculture, which have higher profit margins in liberalised markets.
  For example: Maharashtra’s grape farmers have benefited from global demand, transforming the state into one of India’s leading grape-exporting regions.

Technological Advancements

• Precision Agriculture: Technology like IoT and drones has improved resource management, allowing farmers to monitor soil health, optimise inputs, and increase crop yields.
  For example: Precision agriculture through sensor-based tools in Punjab helps reduce water and fertiliser usage, enhancing sustainable farming practices.
• Digital Marketplaces: Online platforms like e-NAM (National Agriculture Market) have simplified trade and given farmers direct access to buyers, improving price realisation.
  For example: e-NAM allows farmers to sell their produce nationwide, reducing the dependency on local mandis and ensuring better prices.
• Biotechnology in Crop Improvement: Genetic modification and hybrid seeds have boosted crop resilience, making it easier to cope with climate change and pest issues.
  For example: Bt cotton adoption in India has significantly reduced pest attacks, resulting in higher yields and better returns for cotton farmers.

Potential for Creating an Inclusive Policy Framework

• Integrated Support for Allied Sectors: Policies that promote collaboration between agriculture and allied sectors like dairy, fisheries, and horticulture can create diversified income sources for farmers.
  For example: Government schemes like the National Dairy Plan have improved milk productivity, benefiting rural dairy farmers with better income stability.
• Focus on Digital Literacy: An inclusive framework that includes digital literacy training can help small farmers access technology and market information more effectively.
  For example: Initiatives by NABARD on digital literacy have empowered farmers in rural areas to use technology for farming decisions and online marketplaces.
• Enhanced Crop Insurance Programs: Developing better crop insurance schemes that protect farmers from income loss due to climate and market fluctuations is essential for resilience.
  For example: The Pradhan Mantri Fasal Bima Yojana (PMFBY) offers crop loss coverage, helping farmers cope with unpredictable weather patterns.
• Sustainable Practices through Incentives: Policies that incentivise sustainable practices, such as organic farming and efficient water usage, can support long-term agricultural productivity.
  For example: The Paramparagat Krishi Vikas Yojana (PKVY) promotes organic farming, aiding farmers in accessing niche organic markets with premium prices.
• Access to Low-Interest Credit: Providing accessible low-interest credit to small and marginal farmers can support their transition to advanced practices and technologies.
  For example: Kisan Credit Cards (KCC) provide credit to small farmers, allowing them to invest in necessary inputs and equipment.
• Bipartisan Political Support for Agriculture Reforms: A consensus across political lines on agriculture reforms can promote policy stability, encouraging private sector investment in rural development and agri-infrastructure.
  For example: Initiatives like e-NAM, supported by successive administrations, have ensured that digital market access for farmers remains a national priority.
• Empowering Local Political Institutions: Strengthening local governance bodies like Panchayats to make region-specific agricultural decisions can improve policy relevance and implementation at the grassroots level.
  For example: Panchayati Raj institutions in states like Kerala play a key role in implementing local agricultural schemes that meet community-specific needs, fostering inclusive growth

Challenges of Creating an Inclusive Policy Framework

• Regional Disparities: Variations in resource availability and climate across states make it difficult to implement a uniform policy framework that meets the needs of all regions.
  For example: Water-scarce regions in Maharashtra require different support than flood-prone areas in Assam, complicating policy standardisation.
• Digital Divide in Rural Areas: Limited internet connectivity and digital literacy among rural farmers create barriers to accessing digital platforms and modern technology.
  For example: According to TRAI, rural India has lower internet penetration, hindering farmers from utilising online resources for agriculture.
• Lack of Adequate Funding: Funding constraints limit the government’s ability to implement extensive programs and subsidies that address both traditional and modern farming needs.
  For example: Budget allocations for agriculture often fall short of meeting the comprehensive requirements of technological adoption and infrastructure.
• Limited Coordination Among Stakeholders: Insufficient coordination between government, private sector, and NGOs can hinder policy effectiveness and implementation.
  For example: Overlapping initiatives by various ministries sometimes create confusion rather than synergy, affecting policy outcomes in agriculture.
• Resistance to Change in Farming Practices: Farmers accustomed to traditional methods may resist adopting new technology and practices, creating challenges in the transition.
  For example: Many small farmers in India are reluctant to adopt mechanised farming due to high initial costs and lack of familiarity with modern equipment.

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Way Forward

• Boosting Rural Infrastructure: Developing rural infrastructure, including roads, cold storage, and internet facilities, will make advanced technologies more accessible to farmers.
  For example: The Pradhan Mantri Gram Sadak Yojana(PMGSY) has improved road connectivity, facilitating better transport of agricultural goods to markets.
• Strengthening Farmer Producer Organisations (FPOs): FPOs can provide small farmers with better bargaining power, collective access to technology, and shared resources..
• Targeted Subsidies for Technology Adoption: Introducing subsidies specifically for technological equipment and practices can encourage small farmers to adopt precision agriculture and other advancements.
  For example: Subsidies on drip irrigation systems have increased adoption in states like Rajasthan, helping farmers manage water usage effectively.
• Regionalised Policy Frameworks: Tailoring policies according to regional needs can address unique challenges, ensuring that different states benefit according to their specific agricultural conditions.
• Promoting Research and Innovation: Increasing investment in agricultural research can foster innovations tailored to Indian conditions, benefiting small farmers and allied sectors alike.

India’s agricultural transformation demands a balanced approach that combines technological advancement and economic inclusivity. Creating an inclusive policy framework will require aligning diverse needs across farmers and allied sectors while addressing region-specific challenges. A strategic focus on infrastructure, digital literacy, and targeted subsidies can enhance the sector’s resilience and sustainability, driving growth that benefits all stakeholders in the agricultural ecosystem.

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