Agriculture has the capacity of feeding the growing millions by diversifying crop patterns throughout the country. It is a challenge which we must face in view of growing scarcity of food grains in the country. It is facing the challenges at both internal and external level. Internal challenges have been with us for some time; they are well recognized and need to be addressed urgently. External challenges have emerged in recent years and are threatening to weaken the already emaciated agricultural sector.

Internal challenges include those in farm production, processing industry and marketing. Dependence on monsoons, fragmented land-holding, low level of input usage, poor pre-and post-harvest practices and inadequate marketing infrastructure are some of the well-known weaknesses that lead to low yields and high cost of the farm produce. The processing industry is highly fragmented and suffers diseconomies of scale. High cost of funds and power in addition to erratic supplies make production expensive. In addition, lack of competition had generated a protected environment with consumers not getting a good deal. In the area of marketing too, our agribusinesses face challenges. High cost of production and non-uniform or even suspect quality compromise consumer interest and make the product over-priced.

There are wide variations in support levels across commodities and countries. Market price support and output payments remain high. Both level and nature of current policy support continue to shield producers in OECD area from world market signals. It is, no doubt, well recognized that subsidies impose burden on consumers and tax-payers contribute to environmental damage and constrain growth and developmental opportunities in poorer developing countries. The problem is with respect to both availability of food and access to food. As many as 182 countries have called for global alliance against hunger.

It is clear that there are external forces that challenge Indian agriculture and agribusiness. The intention is to crack open the one billion strong Indian market to highly subsidized foreign goods. In the Indian context, the challenging internal and external environment and considering the fact that the fortunes of three-fourths of the population are directly dependent on our country’s farm related policies, the need of the day is to strengthen domestic agriculture. India has all the factors of production-land, labor, sunshine, water and agro-climatic zones-except appropriate policies for an efficient management of resources. Input management is the most critical part that needs serious attention.

Quite apart from supply of quality seeds, fertilizers and agro-chemicals, scientific management of scarce water resources deserves the highest priority. Flow of credit and delivery of credit needs special attention. Budgetary outlay for agriculture related programmers and schemes have been shrinking. Funding for agriculture has to be raised and at the same time, an effective monitoring mechanism to ensure application of funds and value-for-money should be evolved.
Rural infrastructure is nonexistent. The money being waste-fully spent on storage of unconscionable levels of food grain stocks as buffer should be better utilized for creating rural assets in the form of warehouses, roads, market yards etc.

If timely action is not taken to resurrect and strengthen agriculture, it could be too late soon. We need to create conditions and also empower both agriculture and industry to face globalization without getting blown away.