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Semester 6: AGRICULTURAL ECONOMICS
Scope and Significance, Intersectoral Linkages, Farm Management, Risk Management in Agriculture
AGRICULTURAL ECONOMICS
B.A.
ECONOMICS
6
PERIYAR UNIVERSITY
Core Course - XV
Scope and Significance, Intersectoral Linkages, Farm Management, Risk Management in Agriculture
Agricultural economics deals with the production, distribution, and consumption of agricultural goods and services.
It helps in understanding the economic aspects and decision-making processes in agriculture and promotes efficient resource allocation.
Contributes to food security, agricultural productivity, and rural development.
Refers to the connections between agriculture and other sectors such as manufacturing, services, and trade.
Facilitates the flow of resources and information across sectors, enhancing overall economic growth.
Agricultural industries contributing to the manufacturing sector through food processing and packaging.
Involves the planning and implementation of agricultural operations to achieve specific objectives.
Effective farm management ensures optimal use of resources, maximizing production and profits.
Includes budgeting, planning crop rotations, and selecting appropriate technologies.
Involves identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize or control their impact.
Farmers face various risks including climate change, price fluctuations, and pest infestations.
Utilizing insurance, diversifying crops, and implementing sustainable farming practices.
Agricultural Labour: Definition, Supply, Rural Unemployment, Minimum Wages, Wage/Self Employment Programmes
Agricultural Labour
Definition
Agricultural labour refers to the workforce engaged in the cultivation, harvesting, and processing of agricultural products. This includes both skilled and unskilled workers involved in various agricultural activities.
Supply of Agricultural Labour
The supply of agricultural labour is influenced by several factors including the availability of land, seasonal demands, rural migration patterns, and educational levels of individuals. Socioeconomic factors also play a crucial role in determining the supply.
Rural Unemployment
Rural unemployment in agricultural contexts may arise from factors such as overpopulation in rural areas, seasonal nature of agricultural work, and lack of diversification in rural economies. Seasonal employment can lead to periods of underemployment.
Minimum Wages
Minimum wages for agricultural labour aim to protect workers from exploitation and provide a basic standard of living. Policies surrounding minimum wages vary by region and can influence the supply and demand for agricultural workers.
Wage/Self Employment Programmes
Wage and self-employment programmes in agriculture are essential for improving livelihoods. These programs encourage entrepreneurship in rural areas and provide skills training, which can help reduce unemployment rates.
Agricultural Finance: Nature, Sources, Problems, Cooperatives, Commercial Banks, NABARD, Farm Capital
Agricultural Finance
Nature of Agricultural Finance
Agricultural finance refers to the credit and capital resources needed for agriculture. It encompasses the funds required for various stages of agricultural production, including pre-production, production, and post-production. It plays a vital role in enhancing productivity, ensuring food security, and supporting rural development.
Sources of Agricultural Finance
Sources of agricultural finance can be broadly categorized into formal and informal sources. Formal sources include banks, financial institutions, and cooperatives that provide structured loans with interest. Informal sources comprise moneylenders and relatives, where borrowing may have fewer regulations but can involve higher interest rates.
Problems in Agricultural Finance
Challenges in agricultural finance include inadequate access to credit, high-interest rates, lack of collateral, and complex loan procedures. Seasonal income variability and uncertain weather conditions further affect repayment capacity, leading to a high rate of loan defaults.
Role of Cooperatives in Agricultural Finance
Cooperatives play a significant role in providing credit to farmers. They pool resources and provide loans at lower interest rates compared to commercial banks. Cooperatives also help in collective marketing and input procurement, reducing costs for members.
Commercial Banks in Agricultural Finance
Commercial banks provide agricultural loans, but they often focus on larger farms or agribusinesses. They may have stringent lending criteria and preference for urban clients, making it challenging for smallholder farmers to access needed funds.
NABARD's Role in Agricultural Finance
The National Bank for Agriculture and Rural Development (NABARD) is instrumental in supporting rural development through agricultural finance. It provides refinancing to commercial banks and cooperatives, facilitates credit flow, and develops financial institutions catering to rural needs.
Farm Capital
Farm capital includes the assets needed for farming, such as land, machinery, livestock, and buildings. Effective farm capital allocation is crucial for enhancing productivity and profitability in agriculture.
Price Policy: Objectives, Stability, Trends, Exports, Current Issues in Indian Agriculture
Price Policy: Objectives, Stability, Trends, Exports, Current Issues in Indian Agriculture
Item
Define price policy and its significance in agriculture.
Item
Discuss the importance of price stability for farmers and consumers.
Item
Analyze the current trends in pricing in Indian agriculture.
Item
Examine the role of price policy in boosting agricultural exports.
Item
Identify current issues related to price policy in Indian agriculture.
Sustainable Agriculture: Poverty, Inequality, Unemployment, Environmental Degradation, Green Revolution, Food Security, PDS
Sustainable Agriculture
Poverty and Sustainable Agriculture
Sustainable agriculture can help reduce poverty by increasing food production and providing livelihoods for farmers. Through eco-friendly practices, smallholders can improve income levels and access to markets.
Inequality in Agricultural Systems
Inequality often persists in agricultural systems, affecting access to resources like land and capital. Sustainable agriculture promotes inclusive practices that can empower marginalized communities.
Unemployment and Agricultural Development
The agricultural sector can play a critical role in job creation. Sustainable practices can foster new employment opportunities in various agricultural activities, helping to alleviate unemployment.
Environmental Degradation and Agriculture
Conventional agricultural practices often lead to environmental degradation, including soil depletion and biodiversity loss. Sustainable agriculture aims to minimize these impacts by promoting practices like crop rotation and organic farming.
Green Revolution
The Green Revolution significantly boosted food production through technological advances. However, its focus on high-input agriculture created sustainability concerns. A modern Green Revolution should emphasize eco-friendly technologies.
Food Security and Sustainability
Sustainable agriculture is essential for ensuring food security by improving production resilience against climate change and market fluctuations. It focuses on maintaining ecological balance while providing sufficient food.
Public Distribution System (PDS) and Sustainable Practices
The PDS plays a vital role in food security. Integrating sustainable agricultural practices can improve food quality and reduce wastage in the distribution system.
