Abstract
According to the Global Hunger Report, India continues to be among nations where hunger is "alarming". It is most disappointing that despite high economic growth, the hunger index in India between 1996 and 2011 has insignificantly improved from 22.9 to 23.7. National Sample Survey Organization data revealed that the average per capita food expenditure per annum during the period from 1993 to 2010 increased only by 0.2 % annually in rural India and declined by 0.1% in the urban areas. At any given point of time, the cereal intake of the bottom 20% people in rural India which is engaged more in manual work continues to be at least 20% less than the cereal intake of the top decile of the population, despite their better access to fruit, vegetables and meat products. Endemic hunger continues to afflict a large proportion of the population. Agricultural Census [2010–11] revealed that out of 138.35 million operational holdings in India as high as 85% (which account for 44.6% of the total cultivated area) are small and marginal farmers [S&MFs] owning less than two hectares. This, therefore, characterises India’s agriculture a small-scale-farming. Average size of small-holding is only 0.61 hectare whereas overall average size of holdings declined from 1.33 ha in 2000–01 to 1.15 in 2010–11.The role of S&MFs in boosting food output and reduction of poverty is well recognized. Therefore, the future of sustainable agricultural growth, food security and poverty reduction in India depends on creating environment that enables huge number of S&MFs to easy, hassle-free and reliable access to institutional credit. Against this background, this article analyses the performance of Government–sponsored and Banks programs aimed at financing S&MFs and suggest enabling measures to achieve 8% target of credit to S&MFs within existing 18% credit to agriculture by 2017 as recently prescribed by the Reserve Bank of India [RBI].
Highlights
The Food and Agriculture Organization [FAO] of the United Nations report, “ The State of Insecurity in the world 2008” revealed that the overwhelming majority of the hungry live in the developing world, 65% of them just in seven countries, namely India, China, the Democratic Republic of Congo, Bangladesh, Indonesia, Pakistan and Ethiopia
At any given point of time, the cereal intake of the bottom 20% people in rural India which is engaged more in manual work continues to be at least 20% less than the cereal intake of the top decile of the population, despite their better access to fruit, vegetables and meat products
The future of sustainable agricultural growth, food security and poverty reduction in India depends on creating environment that enables huge number of S&MFs to easy, hassle-free and reliable access to institutional credit
Summary
The Food and Agriculture Organization [FAO] of the United Nations report, “ The State of Insecurity in the world 2008” revealed that the overwhelming majority of the hungry live in the developing world, 65% of them just in seven countries, namely India, China, the Democratic Republic of Congo, Bangladesh, Indonesia, Pakistan and Ethiopia. It may be recalled that FAO as back as in 1974 had declared that by 1984 “no child, woman or man should go to bed hungry and no human being’s physical or mental potential should be stunted by malnutrition” and acknowledging the fact that “food is a requisite of human survival and well-being and a fundamental human right” the FAO in October 1979 agreed to designate October 16 [the date of FAO’s Foundation] each year commencing from 1981as the “World Food Day” This amply points to the need more than before for focused attention to boost agricultural growth rate in India when already a period of four decades has elapsed since the FAO has committed to wipe out hunger
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