Tiger80 Posted April 25, 2015 Posted April 25, 2015 I was watching a debate on this issue and Manvir tevatia , a farmer leader said that in 1971 a farmer got 170 per quitanl and and gold per 10 gram was 500 so by selling 3 quintal wheat he could bought 10 gram gold. now farmer has to sell 20-25 quintal of wheat to buy 10 gram gold. In other words the inflation of gold and other items are much higher than farmer's products ,so there is no surprise that farmer is becoming less profitable and farmers are committing suicide. On the other hand govt officers that used to get 500-1000 salary are now getting 40000-80000. So compared to gold inflation there salary has increased with par.
jalebi_bhai Posted April 25, 2015 Posted April 25, 2015 I was watching a debate on this issue and Manvir tevatia , a farmer leader said that in 1971 a farmer got 170 per quitanl and and gold per 10 gram was 500 so by selling 3 quintal wheat he could bought 10 gram gold. now farmer has to sell 20-25 quintal of wheat to buy 10 gram gold. In other words the inflation of gold and other items are much higher than farmer's products ,so there is no surprise that farmer is becoming less profitable and farmers are committing suicide. On the other hand govt officers that used to get 500-1000 salary are now getting 40000-80000. So compared to gold inflation there salary has increased with par. And the reason for that is because our economy was highly state regulated until 1991. After liberalization and disinvestment, our economy has become more influenced by international market forces. Indian agriculture sector needs modernization that will optimize production process and output along with more effective micro-credit schemes (MUDRA is a good start).
Tiger80 Posted April 25, 2015 Author Posted April 25, 2015 And the reason for that is because our economy was highly state regulated until 1991. After liberalization and disinvestment, our economy has become more influenced by international market forces. Indian agriculture sector needs modernization that will optimize production process and output along with more effective micro-credit schemes (MUDRA is a good start). I think this problem is worldwide. In 1950s there were 25 million farmers USA today only 5 million.Farms are now bigger.This clearly shows that despite increase in population people opted out of farming , may be farming no longer remain profitable and large farms with factory style production become economically more sustainable than small farms with huge subsidies provided by Govt of developed nations. India has no option to move large number of people out of farming O/W I don't think there is solution to this problem
jalebi_bhai Posted April 25, 2015 Posted April 25, 2015 I think this problem is worldwide. In 1950s there were 25 million farmers USA today only 5 million.Farms are now bigger.This clearly shows that despite increase in population people opted out of farming ' date=' may be farming no longer remain profitable and large farms with factory style production become economically more sustainable than small farms with huge subsidies provided by Govt of developed nations. India has no option to move large number of people out of farming O/W I don't think there is solution to this problem[/quote'] The shift happened due to mechanization of farming. Farming in America is actually a very lucrative venture. They just developed techniques that were labour extensive, over the years. Population then shifted to other sectors of the economy. Problem in India is that people play politics over such issues. Our population shot up in an unhealthy manner after independence, which didn't help. One thing I've noticed is that to this day, lots of farmers prefer taking loans from money lenders than via govt. schemes simply because they can't use the govt. money on non-farming ventures, like weddings and cars. They set themselves for debt traps, hoping to offset with surplus crop sale. If crops fail, they plunge deeper into the trap.
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