F.Y.B.COM. SEMESTER II
FOUNDATION COURSE – II
.png)
Q. 4 Write a note on Agrarian Crisis?
ANS:
The
Structural Adjustment Programme (SAP) of liberalizing the Indian Economy was undertaken in 1991 as per the directives of
International Monetary Fund and World Trade Organization. Major reforms were
introduced in the real and financial sectors of the economy with a view to
increase its efficiency and profitability.
Trade
was also liberalized; the import and customs duties of many products were
drastically reduced or abolished completely. Removal of all restrictions on
imports lead to a steep fall in their domestic prices rendering them
unprofitable for production. The government started disinvesting in agriculture
and the industrial sector allowing the private sector to take over. The
government reduced different types of subsidies to agriculture which increased the
production cost of cultivation. This lead to the agrarian crisis as it had an
adverse impact on the agricultural sector.
·
Several million hectares of food-growing land were converted
to exportable crops leading to fall in food grains output. India being self-
sufficient started exporting wheat and rice. But the rate of growth of the GDP
in agriculture and allied sectors was just one per cent per annum during the
year 2002-05. As a result, per capita availability of food grains decreased;
the growth rate of population became higher than that of food grains. Moreover,
trade liberalization with a thrust on exports has been in conducive to Indian
markets causing a steep fall in prices of farm goods. As prices fell for Indian
producers of export crops, their access to low-cost credit was also reduced
under financial sector reforms.
·
Lending facilities and concessions of banks were removed
during the post-reform period and this accelerated the crisis in agriculture.
Farmers were unable to pay back loans with high interest and also resorted to
borrowing from unorganized elements such as moneylenders, thus falling into the
debt trap. Farmers did not benefit even with contract farming and their
exposure to steeply falling global food prices plunged them into spiralling
farm debt pushing them to commit suicide.
·
The restructuring of the public distribution system, through
the creation of two groups - Below Poverty Line (BPL) and Above Poverty Line
(APL), continuously increased their prices through ration shops, affecting the
availability of food grains to the poor at subsidized rates. As a result, even
the poor people did not buy the subsidized food grains and it got accumulated
in god owns to be spoiled or sold in the open market.
·
The increased grain exports have been at the cost of hunger
and starvation as millions of rural laborers and farmers have suffered job loss
and income decline. Rising unemployment, rising input and credit costs for
farmers and exposure to global price declines are responsible for the low
absorption of food grains in India.
·
Increase in the instance of farmers’ suicides has been a
major fall- out of stagnation in agriculture. Monopolisation of HYV seeds,
shift in farming from chemical farming to organic farming, global competition
is killing our farmers literally. Since agriculture is not drawing remunerative
income, farmers have become desperate, turning to suicide as an escape from the
debt trap. More than five thousand indebted cotton farmers, have committed
suicide in
·
Andhra Pradesh since 1998. Punjab and Maharashtra (Vidarbha)
are not far behind in numbers. This is a grave issue which requires urgent and
continuing attention of the government and society.
·
Contract farming has lead to a direct onslaught on peasant
land and water resources by the corporate. Restrictions on landownership by
non-cultivators have been removed and ceilings on landholdings rolled back in
many states to aid large business corporations in purchase of agricultural
land. Farmers are giving up land to solve their debt crises but are unable to
overcome their food problems. Unemployment in the agricultural sector has in
fact increased during the reform period.
·
Under the Special Economic Zones Act of 2005, land has been
taken over by the government for commercial and industrial purposes. Most of
the acquired land is fertile for non-agricultural purposes. Corporate bigwigs
like Reliance, TATA have faced public protests over their acquisition of land
such as Nandigram agitation in West Bengal. SEZ were introduced to promote
export and industrial growth in line with globalisation but have resulted in
exploitation of farmers taking away their means of livelihood and directing
land towards business and manufacture.
If you want exam most important question bank pdf then you have to pay per subject 100/- rupees only .
Contact 8652719712 / 8779537141
Telegram Group
Mumbai Univeersity :- https://t.me/mumbaiuniversityidolSuraj Patel Education :- https://t.me/surajpateleducationF.Y.J.C EXAM :- https://t.me/FYJCexamS.Y.J.C EXAM :- https://t.me/SYJCexamF.Y EXAM :- https://t.me/fyexamS.Y EXAM :- https://t.me/syexamT.Y EXAM :- https://t.me/tyexamM.Com Part 1 EXAM :- https://t.me/McomPart1ExamM.Com Part 2 EXAM :- https://t.me/McomPart2ExamM.A EXAM :- https://t.me/mastudentsexam YouTube Channel
YouTube Channel