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Problems Faced by the Agricultural Sector in India > Economic Problems

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CISCE: Class 10

Key Points: Problems Faced by the Agricultural Sector in India > Economic Problems

  • Globalisation has reduced government support to agriculture, leading to withdrawal of subsidies and increased cost of inputs like fertilisers and pesticides for Indian farmers.
  • Indian farmers face tough international competition due to reduced import duties on foreign agricultural products, which lowers farmers’ profits in the domestic market.
  • Subsistence agriculture is common in India because of very small landholdings, low income and lack of mechanisation, resulting in low production meant mainly for family consumption.
  • Poor socio-economic background of farmers—poverty, illiteracy, lack of credit facilities, dependence on moneylenders, and absence of crop insurance—adds to their financial insecurity.
  • Lack of surplus production due to small farms and low productivity prevents farmers from earning enough income, keeping them trapped in poverty.
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