Discuss some of the institutional weaknesses in Indian agriculture.

Question

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Solution

Some of the institutional weaknesses in Indian agriculture are as follows:

We need to involve the small and marginal farmers and the landless labour in deriving benefits of increased agricultural exports through integrated co-operatives like the mother dairy, and other service co-operatives; contract farming, etc.
Present system of credit does not ensure timely availability of credit. In many states, land reform remains woefully unfinished and tenancy regimes need urgent reform.
Indian agricultural credit system is suffering from the problems of subsidized interest rates, poor recovery of loans, high intermediation costs of cooperatives and commercial banks and debt write-offs.
We also need to make efforts to develop new technologies for the farming sector and making it available for small farmers so that they may diversify their production towards high value commercial and export commodities.
We need to create institutions like trading houses, market intelligence services and creation of network of information on national and international prices.
We also need infrastructure for processing, marketing and grading of produce, investment in information etc.

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