28-06-2013, 12:16 PM
Agriculture Sector of India
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INTRODUCTION
India ranks second worldwide in farm output.
Agriculture and allied sectors like forestry and fisheries play an important role to contribute GDP.
The economic contribution of agriculture to India's GDP is steadily declining with the country's broad-based economic growth.
Still, agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India.
India is the world's largest producer of many fresh fruits and vegetables, milk, major spices, select fresh meats, fibrous crops.
India is the second largest producer of wheat and rice, the world's major food staples.
India is also the world's second or third largest producer of several dry fruits, agriculture-based textile raw materials, roots and tuber crops, pulses, farmed fish, eggs, coconut, sugarcane
and numerous vegetables.
India ranked within the world's five largest producers of over 80% of agricultural produce items, including many cash crops such as coffee and cotton.
India is also one of the world's five largest producers of livestock and poultry meat, with one of the fastest growth rates, as of 2011.
WTO & Agriculture
The only international organization set up as a permanent body .
Aim :- To deal with the rules of trade between nations.
Was set up on I January 1995.
Headquarter in Geneva, Switzerland.
India is one of the founder members of WTO by ratifying the WTO agreement on 30th Dec 1994.
The Agreement (On Agriculture) has the following clauses :
1. Reduction of domestic subsidies.
2. Reduction in export subsidies.
3. Tariff reduction.
4. Bindings to provide market access.
The present membership of WTO is 157 countries.
Implications of WTO
Benefits from expansion in trade
Benefits from phasing out of the MFA (Multi-Fibre Agreement) (Textile & Clothing Products).
Improved prospects for agricultural exports.
Benefits from multilateral rules and disciplines.
The agreement allows unlimited support to activities such as (i) Research, Pest diseases control , training, extension, and advisory services. (ii) Public stock holding for food security purpose. (iii) Income insurance and food needs, relief from natural disasters and payments under the environmental assistance programmes.
Benefits from expansion in trade
The Uruguay round has projected the largest increases in the areas of clothing, agriculture, forestry and fishery products and processed food and beverages.
Since India’s competitiveness lies in these product groups, India will obtain large gains in these sectors.
Commodity Market
Markets where raw or primary products are exchanged.
These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.
Most commodity market across the world trade in agricultural products and other raw materials (like wheat, sugar, maize, cotton, cocoa, coffee, milk products, oil, metals, etc.) and contracts based on them.
These contracts can include spot prices, forwards, futures and options on futures. Other sophisticated products may include interest rates, environmental instruments, swaps, or ocean freight contracts.
Commodities exchanges usually trade futures contracts on commodities, such as trading contracts to receive a particular commodity in physical form.