Question

Which of the following is institutional weaknesses in Indian agriculture?

Options

• Present system of credit does not ensure timely availability of credit

• Indian agricultural credit system is suffering from the problems of subsidised interest rates, poor recovery of loans,etc

• We also need infrastructure for processing, marketing and grading of produce, investment in information etc

• All of the above

Answer 1

All of the above

Explanation:

The following are some of the institutional flaws in Indian agriculture:

1. We must incorporate small and marginal farmers, as well as landless workers, in reaping the benefits of greater agricultural exports through integrated co-operatives such as the mother dairy and other service co-operatives; contract farming, and so on.
2. The current credit system does not guarantee prompt credit availability. Land reform remains shamefully unfinished in many states, and tenancy regimes require urgent change.
3. Subsidized interest rates, poor loan collection, high intermediation costs of cooperatives and commercial banks, and debt write-offs plague the Indian agricultural credit sector.
4. We must also make efforts to create new farming technologies and make them available to small farmers.

5. Trading vacations, market intelligence services, and other organisations must be established. Development of an information network prices both at home and abroad.

6. We also require infrastructure for crop processing, marketing, and grading, as well as information investment.