Impact of the Agreemond on Agriculture on the Indian Economy

  • Length: 1073 words (3.1 double-spaced pages)
  • Rating: Excellent
Open Document

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Text Preview

More ↓

Continue reading...

Open Document

Impact of the Agreemond on Agriculture on the Indian Economy

Indian agriculture is characterised by a preponderant majority of small and marginal farmers holding less than two hectares of land, less than 35.7% of the land, is under any assured irrigation system and for the large majority of farmers, the gains from the application of the science & technology in agriculture are yet to be realised. Farmers, therefore, require support in terms of development of infrastructure as well as extension of improved technologies and provisions of requisite inputs at reasonable cost. India’s share of world’s agricultural trade is of the order of 1%. There is no doubt that during the last 30 years, Indian agriculture has grown at a reasonable pace, but with stagnant and declining net cropped area it is indeed going to be a formidable task to maintain the growth in agricultural production. The implications of the Agreement would thus have to be examined in the light of the food demand and supply situation. The size of the country, the level of overall development, balance of payments position, realistic future outlook for agricultural development, structure of land holdings etc. are the other relevant factors that would have a bearing on India’s trade policy in agriculture.
Implications of the Agreement on Agriculture for India should thus be gauged from the impact it will have on the following:
i) Whether the Agreement has opened up markets and facilitated exports of our products; and
ii) Whether we would be able to continue with our domestic policy aimed at improving infrastructure and provision of inputs at subsidised prices for achieving increased agricultural production.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

How to Cite this Page

MLA Citation:
"Impact of the Agreemond on Agriculture on the Indian Economy." 21 Jun 2018
Title Length Color Rating  
A Look Into the Field of Agriculture Essay - History and Development Agriculture has been around for millenniums. It has been around since the beginning of time and has undergone significant developments since the time of the earliest cultivation. It was first thought of in the Fertile Crescent of the Middle East and later spread to northern and southern China, Africa’s Sahel, New Guinea and several regions of the Americas. Agriculture practices such as irrigation, crop rotation, fertilizers, and pesticides have made great strides in the past century to meet the needs of farmers....   [tags: Agriculture]
:: 10 Works Cited
2152 words
(6.1 pages)
Term Papers [preview]
Agriculture in a Market Economy and Sustainable Alternatives Essay - Agriculture in a Market Economy and Sustainable Alternatives Imagine driving through any number of Midwestern states, passing acres upon acres of corn or soybeans, feeding lots in Kansas with thousands of cattle, or rows of poultry barns in Virginia that leave their memories in your nose for miles down the road. Today’s agricultural system in the United States is one that follows capitalism and demands competition, which usually means make as much as you can with as few resources as possible....   [tags: Farming Agricultural Economics Essays]
:: 8 Works Cited
2958 words
(8.5 pages)
Research Papers [preview]
Energy and Industrialized Agriculture Essay - Agricultural practices throughout the ages have evolved dramatically. Having started off as simple pastoral management and shifting cultivation, these methods have been altered substantially in the name of “progress”, primarily in the US and other industrialized nations. Through this progression the energy inputs and outputs has been drastically altered. The industrialized food system as we know it is much more complex today than the simple agricultural practices used thousands of years ago. Today, the industrialized agricultural system is dependent on extraordinary amounts of fossil fuel inputs in order to maintain its complexity....   [tags: Agriculture]
:: 7 Works Cited
1601 words
(4.6 pages)
Powerful Essays [preview]
Essay on Origins of Agriculture: the stepping stone for civilization - Most people do not think highly of the farmer and of agriculture in general. After all, there is no "visible" connection between the rural and the urban life. As long as the food is on the table or in the market, agriculture is simply not important to most people. However, not that many people think that school, sports, movies, and society would not be possible without agriculture. Agriculture was a crucial science that gave rise to the earliest of settlements and allowed humans to grow. Agriculture began around the same time in different areas around the world and with agriculture came the very start of modern civilization....   [tags: Agriculture]
:: 6 Works Cited
1432 words
(4.1 pages)
Powerful Essays [preview]
Government Intervention in Agriculture Industry in Indonesia Essay - Nowadays in Indonesia, Fruits and vegetables have become rare items due to slow distribution and poor transportation (TheJakartaPost, 2010). This will cause price of fruits and vegetables to increase due to shortage of supply. Not only that, inequality in distribution of income by farmers has take place due to lack of capital acess (TheJakartaPost, 2010). The market economy requires institution such as government to implement policies and making decisions to maintain market and avoid market failures like monopoly and negative externalities....   [tags: Agriculture ]
:: 2 Works Cited
547 words
(1.6 pages)
Good Essays [preview]
Essay on Changes in America's Agriculture From 1865-1900 - Through the period of 1865-1900, America’s agriculture underwent a series of changes .Changes that were a product of influential role that technology, government policy and economic conditions played. To extend on this idea, changes included the increase on exported goods, do the availability of products as well as the improved traveling system of rail roads. In the primate stages of these developing changes, farmers were able to benefit from the product, yet as time passed by, dissatisfaction grew within them....   [tags: Agriculture] 802 words
(2.3 pages)
Better Essays [preview]
Essay on The Environmental Impact of Cattle Farming - Mass Cattle farming within modern societies can pose many environmental implications, if caution is not taken. Not only do they contribute to land degradation, they contaminate soil and water, promote over consumption, and waste excessively high amounts of resources. For many cities in Canada, this problem affects the condition of their environment. Key initiatives and programs are being mounted, now more than ever, to aid in minimizing such a demanding issue. More specifically, in Edmonton the framework that has been implemented to address these issues have been provided by several grants, courtesy of the Alberta Livestock and Meat Agency....   [tags: Agriculture]
:: 12 Works Cited
2084 words
(6 pages)
Term Papers [preview]
Essay on Ghana's Agriculture Sector - The agriculture sector is an important asset for Ghana’s economy. It accounts for one-third of gross domestic product (GDP), and provides over 55% of the population’s jobs (Ghana Agriculture). Ghana’s climate is tropical; warm and dry along the southeast coast; hot and humid in the southwest, and hot and dry in the north. The terrain is mostly low plains with divided plateau in the south-central area. The overall percentage of land use is 17.54% of arable land and 9.22% of permanent crops. Environmental current issues in Ghana are deforestation, overgrazing, soil erosion, droughts, water pollution, and inadequate supplies of potable water....   [tags: Agriculture] 1581 words
(4.5 pages)
Powerful Essays [preview]
Agriculture in China Essay - A. Plan of Investigation The investigation will attempt to answer the question, “To what extent did Chinese agricultural reforms between 1978 and 1982 enable the success of the four modernizations?” Research will primarily be gathered on the nature of these reforms, how they compared to the agriculture policy of Mao during the Great Leap Forward and how Deng’s reforms enabled the possibility of economic growth and reform in the private sectors of China. Primary source such as official statistics of agricultural production kept in villages will be analyzed to determine the impact of overall government policy in villages and other agricultural centers....   [tags: agricultural reform, China, investigation]
:: 9 Works Cited
1882 words
(5.4 pages)
Term Papers [preview]
Global Economy Essay - Global Economy’s Impact on Labor The global economy has had great impact on the labor force, affecting each country in its own way whether it deals with outsourcing and offshoring or unemployment. The term global economy means integrating the world economy through trade, production, and distribution while consuming goods and services. Globalization has progressively integrated its way into all countries and the United States has seen that on the rise with diverse ethnic, economic, and religious groups that work together in everyday tasks....   [tags: Impacts, Labor Force, Economy]
:: 3 Works Cited
1369 words
(3.9 pages)
Strong Essays [preview]

The Agreement on Agriculture forms a part of the Final Act of the Uruguay Round of Multilateral Trade Negotiations, which was signed by the member countries in April 1994 at Marrakesh, Morocco and came into force on 1st January, 1995. The Uruguay Round marked a significant turning point in world trade in agriculture. For the first time, agriculture featured in a major way in the GATT round of multilateral trade negotiations. Although the original GATT – the predecessor of the World Trade Organisation (WTO) – applied to trade in agriculture, various exceptions to the disciplines on the use of non-tariff measures and subsidy meant that it did not do so effectively.
The root cause of distortion of international trade in agriculture has been the massive domestic subsidies given by the industrialised countries to their agricultural sector over many years. This in turn led to excessive production and its dumping in international markets as well as import restrictions to keep out foreign agricultural products from their domestic markets. The obligations and disciplines incorporated in the Agreement on Agriculture, therefore, relate to
(a) market access;
(b) domestic subsidy or domestic support; and
(C)export subsidy

Indian agriculture enjoys the advantage of cheap labour. Therefore, despite the lower productivity, a comparison with world prices of agricultural commodities would reveal that domestic prices in India are considerably less with the exceptions of a few commodities (notably oilseeds). Hence, imports to India would not be attractive in the case of rice, tea, sunflower oil and cotton. On the whole, large scale import of agricultural commodities as a result of trade liberalisation is ruled out. Even the exports of those foodgrains which are cheaper in the domestic market, but are sensitive from the point of view of consumption by the economically weaker sections are not likely to rise to unacceptable levels because of high inland transportation cost and inadequate export infrastructure in India.
Because of increasing price of domestic agricultural commodities following improved export prospects, farmers would get benefits which in turn would encourage investment in the resource scarce agricultural sector. With the decrease in production subsidies as well as export subsidies, the international prices of agricultural commodities will rise and this will help in making our exports more competitive in world market
Both the pattern of production and price expectations will increasingly be influenced by the demands and trends in world markets. On the one hand, the price incentive could be the best incentive and could give a strong boost to investment in agriculture as well as adoption of modern technologies and thereby to the raising of agricultural production and productivity. On the other hand, the rise in domestic prices would put pressure on the public distribution system and accentuate the problem of food subsidy & freedom to export agricultural products without restrictions will also need shedding the long-nurtured inhibition against their imports
The freeing of trade in agriculture under the AoA is likely to bring about significant increases in trade in agriculture and give unprecedented opportunities to the developing countries to benefit from increased agricultural exports. But this would depend on the developed countries’ willingness to reduce domestic and export subsidies and provide market access to agricultural exports from the developing countries. On the other hand, trade liberalisation is also likely to pose serious challenges for the developing countries.
The challenges lie first in becoming globally competitive in agricultural exports and secondly, in enabling the sharing of the benefits of trade liberalisation not by a small minority of rich farmers but by the majority of small and marginal farmers and agricultural workers in India.

1.Transitional period available for developing countries for full implementation of the Agreement and the need to extend the same
2. The terms, conditions and tariff structures for ready access by developing countries to other markets
3. Minimal domestic support systems needed to ensure food security, which should go far beyond products and distribution to areas of equitable supply at affordable prices
4. Export subsidies to ensure that Indian commodity exports are competitive in the Global markets, considering that the developed countries have been consistently providing major concessions directly or indirectly to their exporters
5. Non-tariff modalities practised by developed countries, including invoking issues on labour, sanitary and phytosanitary measures
6. Special Safeguard provision, which imposes import restrictions under certain conditions, which are considered to be discriminating against developing countries
7. Impact of phasing out quantitative restrictions by April 2001, which India had enjoyed on the basis of her Balance of Payment (BOP) problems
8. India's favourable total Aggregate Measure Support (AMS), which being negative, to be taken into account while considering the across the board commitments for tariff reduction agreed to by developing countries

Return to