After the green revolution Indian agriculture has become cereal based, region centric, input intensive and consumed higher land, water, fertilizers. A rainbow revolution is needed to ensure that pulses, fruits and vegetables too are given importance.

Per capita availability of water and arable land in India has been on the decline steadily. India needs to move to more from less strategy.

Problem of Minimum Support Price

Indian agriculture is focused on wheat and rice intensive where both are grown on most fertile land. They also consume most of the resources like water, M.S.P., fertilizers but have very low yields.

Unlike other countries the quantity of water used for a unit of crop is higher in India. Also India exports water intensive crops unlike china that imports water intensive crops.

Solution could be use of drip irrigation to save water and fertilizer. The key impediment to these are the high cost of initial installation and skill needed for maintenance.

When planting crops the farmers could use an option contract to safeguard his price of selling to make adequate returns. But this facility is available to only a few farmers. The government thus uses M.S.P to protect farmers interest.

Problem with M.S.P policy is that it is high for wheat and rice and low for pulses thus discouraging production of pulses which have to be imported. The farmers who know about M.S.P vary from state to state and crop to crop.

Thus in reality very few know about M.S.P. M.S.P is also not taking into account negative externalities like use of chemical fertilizers, destructive practices and overuse of groundwater. This leads to future problems and have to be accounted.

Chapter Review

Score more than 80% marks and move ahead else stay back and read again!

Q1:Rainbow revolution refers to

  • overall development of agriculture sector
  • fishery sector development
  • airplane sector growth
  • food processing sector


Q2:Open ended procurement is practised by

  • wheat
  • rice
  • both
  • none


Q3:Method of saving the farmer from price shocks is

  • MSP
  • Option contract
  • both
  • none


Q4:Agriculture universities are suffering from

  • lack of talented faculty
  • no link with international organizations
  • lab to farm connect, resource crunch
  • none


Q5:National agriculture market will mean


  • boost to retail supply chain
  • farmers can sell anywhere
  • removal of monopoly of APMC
  • all