NIOS Economics (318) Notes/Answer| Chapter-26|Agriculture

NIOS Economics (318) Notes/Answer| Chapter-26|Agriculture. Important questions for NIOS Economics (318) Questions Answers brings you latest queries and solutions with accordance to the most recent pointers SOS . Students will clear all their doubts with regard to every chapter by active these necessary chapter queries and elaborate explanations that area unit provided by our specialists so as to assist you higher. These queries can facilitate students prepare well for the exams thanks to time constraint . NIOS Economics (318) Notes/Answer| Chapter-26|Agriculture.

HS 2nd years Solutions (English Medium)

NIOS Economics (318) Notes/Answer| Chapter-26|Agriculture

Intext Questions

1. Fill in the blanks from the words given in the bracket: (one-third, two-third, industrial, important, incentive, agriculture)

a) ____________ is the most important sector in the Indian economy.

Ans. agriculture 

b) Nearly ____________ of the total population of India is engaged in agriculture

Ans. two-third

c) Things such as clothes, shoes, furniture, radio, T.V. etc. are produced by the ____________ sector.

Ans. industrial

d) Increasing demand for manufactured goods create an____________ for the expansion of industries

Ans. incentive 

e) Agriculture plays an ____________ role in India’s foreign trade.

Ans. important 

f) Nearly____________ of India’s national income originates from agriculture.

Ans. one-third

2 Match the following raw materials with the products they help to produce:

a) sugarcane1. oil
b) oil seeds2. textiles
c) raw cotton3.-tyres and tubes
d) rubber4.sugar


a) sugarcane4.sugar
b) oil seeds1. oil
c) raw cotton2. textiles
d) rubber3. -tyres and tubes

3. Fill in the blanks from amongst the words given in brackets: (intensive, output, extensive, 20 quintals, 30 quintals)

a) The method of increasing production by bringing more land under cultivation is known as ____________ cultivation.

Ans. extensive

b) The method of growing more on the same piece of land is known as ____________  cultivation

Ans. intensive

c) Productivity of land is defined as the ____________ produced per hectare.

Ans. output

d) If 60 quintals of rice is produced on 3 hectares of land, then productivity is equal to ____________ per hectare.

Ans. 20 quintals

4. Match each crop with the country where productivity was highest in 1994-95.

a) Maize1. North Korea
b) Rice2. Bhutan
c) Wheat3. Israel
d) Groundnut4. Greece
e) Jute5. Ireland


a) Maize4. Greece
b) Rice1. North Korea
c) Wheat5. Ireland
d) Groundnut3. Israel
e) Jute2. Bhutan

5. Fill in the blanks from amongst the words given in the bracket: (70, landlord tenant, 4:2:1, 5% to 10%, nitrogenous, 8.5:2.5:1, 60, 10% – 20%)

a) Farmer who cultivate a piece of land that they have taken on rent are known as _______ farmer

Ans. tenant

b) _______ percent of total cultivated area in our country lacks adequate irrigation facilities.

Ans. 70%

c) The optimum N:P:K ratio is_______

Ans. 4:2:1

d) The actual N:P:K ratio in India is_______

Ans. 8.5:2.5:1

e) Urea is an example of _______ fertilizer.

Ans. nitrogenous

f)_______ % of the crop gets damaged due to lack of proper storage facilities.

Ans. 5% to 10%

6. Fill in the blanks from amongst the words given in the bracket: (manure, 1963, 225, surface, cooperative, wheat, rice, 1975, 250)

a) Consolidation of land holdings was stated through the formation of _______

Ans. cooperative

b) Rivers, lakes, ponds, tanks, etc. are examples of_______water sources. 

Ans, surface

c) The area of irrigated land in 1950-51 was_______

Ans. 225

d) The National Seeds Corporation was set up in _______

Ans. 1963

e) Initially HYV seeds were used for _______

Ans. wheat

f) _______ is the fertilizer which has been traditionally used by Indian farmers.

Ans. manure

Terminal Exercise

1. Explain the importance of the agricultural sector in the Indian economy. 

Ans. Agriculture is the most important sector of the Indian economy for the following reasons: 

1. Provides food and fodder

The three basic needs of human beings are food, clothing and shelter. Of these, food is the most important. If we do not get food, we will not be able to survive. Agriculture is the most important sector of the Indian economy because it provides us with food and fodder.

In India the demand for food is continuously increasing due to the rising population and the rising level of income. Therefore, agriculture will continue to play its role in the country’s development.

2. Sources of raw materials

Agriculture provides raw material for various industries. It provides cotton for producing cotton yarn and cotton textiles, raw jute for jute products, sugarcane for producing sugar, seeds for oil, natural rubber for rubber products like styres tubes etc.

As industries grow, the demand for raw material also grows. As a result the agriculture sector must also grow in order to meet the growing requirements of industries.

3. Main source of livelihood

Agriculture has been and continues to be the main source of livelihood in India. Even today about 2/3rd of the Indian population is engaged in agriculture and allied activities. It is likely to continue to be the major source of employment in India.

4. Contribution to foreign trade

Agriculture occupies an important place in India’s foreign trade. Traditionally, India has been an exporter of agriculture related commodities e.g tea, coffee, sugar, cocoa, tobacco, cotton textile, jute, raw wool, vegetable oils. Agriculture is big earner of foreign exchange for India.

In recent times, the importance of agriculture in foreign trade has increased further. India now also exports food grains such as wheat and rice. India also exports a number of varieties of fruits and flowers which are in great demand abroad. 

5. Market for industrial products

From the income that we earn we just buy food and then spend our income on satisfying other wants such as clothes, shoes, furniture, sewing machine, gas stoves, radio, T.V., fridge etc. All of these goods are produced in factories.

About 2/3rd of the Indian population depends on agriculture for livelihood. These people need goods like cloth, houses, kerosene, diesel, furniture, shoes, books and many other goods for their consumption. All these goods are produced by the industrial sector. Therefore, people in the agriculture sector are a large potential market for the goods produced by the manufacturing sector.

As agricultural development takes place, the income of the people increases. This increases demand for manufactured goods leading to industrial development.

6. Contribution to national income

Nearly one-third of the national income of our country originates from agriculture and allied activities. As such it is one of the biggest contributors to national income of India.

2. What is the meaning of the term land productivity? Discuss the changes that have taken place in the productivity levels of different crops in India. How would these compare with the levels of productivity in other countries?

Ans. Land productivity refers to per hectare crop output. There has been an increase in land productivity in India over the last 44 years. It is quite low in comparison to other countries.

Let us now look at the trends in productivity or yield per hectare of some crops like rice, wheat, oil seeds, sugarcane, cotton, and raw jute in India. 

In 1950-51, the yield per hectare in the case of nearly all crops in India was low. But since then due to the planned effort through the five year plans there has been significant increase in productivity over the 44 years period. The largest increase can be seen in the case of wheat where productivity in 1994-95 in 4 times the level of 1950-51

Copy table 26.1 pg 6 Although there has been an increase in productivity over the last 44 years, yields in India are still very low as compared to those in other countries.

Let us now compare the productivity (yield per hectare) for some countries (including India) for the major crops: rice, wheat, maize, groundnut and jute.

We can see from the table that in 1994-95 (Where there had already been an increase in productivity as compared to 1950 51 levels), India’s rice productivity was 1/3rd of that of China and 1/4th of that of North Korea. In the case of wheat we were able to produce per hectare only 1/3rd  of the amount produced by Ireland. Even a country like Bhutan which is less developed can produce twice the amount of jute per hectare that India produces.

Thus, in spite of increases in productivity that have taken place in the last 40 years, India is still behind many countries in almost all agricultural crops in terms of productivity. 

3. What are the causes of low productivity of agriculture in India? 

Ans. The main causes for low productivity of agriculture are broadly of three types;

1. Human Factors:

Human favours are those which are related to training and efficiency of the farmers.

(i) Social atmosphere:

Social climate includes customs and traditions. Indian farmers are illiterate and have no knowledge of the latest techniques of production. He believes in God and is a fatalist in thought. He wastes money on customs and traditions. So the social climate is not suitable for agriculture.

(ii) Pressure of population on land:

Heavy pressure of population is the main cause of low productivity of Indian agriculture. In 1901, 16.30 crore people were dependent on agriculture. The number has gone up to 58.80 crore. So per capita cultivable land had reduced from 0.43 hectare to 0.23 hectare. Heavy pressure has led to subdivision and fragmentation of land holdings.

2. Technical Factors:

Technical Factors include techniques and methods of production:

(i) Traditional methods of Cultivation: 

Traditional methods of cultivation like manual ploughing, two crop patterns and old systems of irrigation are mainly responsible for low productivity of agriculture.

(ii) Old implements:

Traditional equipment like wooden ploughs, sickles and spades are commonly used. Tractors & Combines are not so common in use. Due to the use of these old implements agriculture is backward.

(iii) Insufficient irrigation facilities:

Indian agriculture is mainly dependent on rain. Even after 60 years of Independence only 40% of the agricultural land has permanent irrigation facilities. Due to improper irrigation facilities. A farmer can produce one crop only in a year.

(iv) Problems of soil:

Indian soil has many problems like soil erosion, water logging, nitrogen deficiency and swamps. These are the reasons for low productivity of agriculture.

(v) Problems of pests and diseases of crops: 

Plant diseases like rust and smut and rats, insects and pests destroy large portions of crops.

(vi) Feeble cattle:

Credit facilities are inadequate in rural areas. Farmers may not be able to raise credit from rural banks easily. They have to depend on ‘Mahajans’ and ‘Shahukars’. These money lenders charge a heavy rate of interest. Farmers have to sell their produce at low price to these money lenders. So farmers have low Income and thus low productivity.

(vii) Lack of High Yielding Variety (HYV) seeds:

HYV seeds are not commonly used. Farmers do not understand their significance. They cannot afford to buy them and also these seeds are not easily available.

(viii) Improper marketing:

Due to limited mechanisation of Indian agriculture, cattle have a significant place in agriculture. Cattle are generally weak. Farmers have to spend a lot on these cattle. Cattle farming is more time consuming and expensive than tractor. So these also increase the cost of agriculture.

(ix) Lack of credit facility:

Credit facilities are inadequate in rural areas. Farmers can not be able to raise credit from rural banks easily. They have to depend on ‘Mahajans’ and ‘Shahukars’. These money lenders charge a heavy rate of interest. Farmers have to sell their produce at low prices to these money lenders. So farmers have low Income and thus low productivity.

(x) Lack of High Yielding Variety (HYV) seeds: 

HYV seeds are not commonly used. Farmers do not understand their significance. They cannot afford to buy them and also these seeds are not easily available.

(xi) Improper marketing:

Improper marketing is a significant factor for low productivity of agriculture. Farmers fail to get a suitable price for their produce.Inadequate means of transport forces the farmers to sell their produce to local money lenders at low prices. Due to lack of warehousing facilities, farmers can not able to store their produce when prices are low. So these attribute a lot for low productivity of agriculture. 

NIOS Class 12th Economics (318) Notes/Question Answer

Chapter Chapters NameLink
Chapter 1Economy and Its ProcessClick Here
Chapter 2Basic Problems of an EconomyClick Here
Chapter 3Economic Development and Indian EconomyClick Here
Chapter 4Statistics: Meaning and ScopeClick Here
Chapter 5Making Statistical Data MeaningfulClick Here
Chapter 6Presentation of Statistical DataClick Here
Chapter 7Statistical MethodsClick Here
Chapter 8Index Numbers (Meanings and Its Construction)Click Here
Chapter 9Index Numbers (Problem and Uses)Click Here
Chapter 10Income FlowsClick Here
Chapter 11National Income: ConceptsClick Here
Chapter 12National Income: MeasurementClick Here
Chapter 13Uses of National Income EstimatesClick Here
Chapter 14What micro EconomicsClick Here
Chapter 15What affects demandClick Here
Chapter 16What affects supplyClick Here
Chapter 17Price determinationClick Here
Chapter 18CostClick Here
Chapter 19RevenueClick Here
Chapter 20Profit maximizationClick Here
Chapter 21Government budgetingClick Here
Chapter 22Money supply and its regulationClick Here
Chapter 23Need for planning in IndiaClick Here
Chapter 24Achievements of planning in IndiaClick Here
Chapter 25Recent economic reforms and the role of planningClick Here

Optical Module – I

Chapter 26AgricultureClick Here
Chapter 27IndustryClick Here
Chapter 28Independence of Agriculture and IndustryClick Here
Chapter 29Transport and CommunicationClick Here
Chapter 30EnergyClick Here
Chapter 31Financial InstitutionsClick Here
Chapter 32Social Infrastructure (Housing, Health and Education)Click Here

Optical Module – II

Chapter 33Direction and composition of India’s Foreign tradeClick Here
Chapter 34Foreign exchange rateClick Here
Chapter 35Balance of trade and balance of paymentsClick Here
Chapter 36Inflow of capital (Foreign Capital and Foreign Aid)Click Here
Chapter 37New trade policy and its implicationsClick Here
Chapter 38Population and economic developmentClick Here
Chapter 39Population of IndiaClick Here

3. Institutional Factors:

Institutional factors include land holdings and the land system. 

(i) Small size of farms:

Land holdings in India are of very small size. Average size of holding is 2.3 hectare and 70% of the holdings are even less than 2 hectares. These holdings are fragmented. Due to these small holdings, mechanised cultivation is difficult. Implements and irrigation facilities are not properly utilized. It affects Indian agriculture.

(ii) Defective land tenure system:

The Zamindari system has been an important factor responsible for the low productivity of Indian agriculture. In this system the cultivator is not the owner of the land. Zamindar is the owner of land and he can evict the tenant any time. So the cultivator does not take interest in the development of land and Zaminder does not take interest in the development of cultivation. Though the Zamindari system was abolished after independence, the position of cultivator has not improved.

4. Explain the measures taken to raise agricultural productivity in India. 

Ans. Following are the measures taken to raise agricultural productivity in India.

1. Institutional measures

The main measures are 

a) Abolition of intermediaries

By intermediaries is meant the intermediaries between the tiller and the state. These were mainly responsible for collection of revenue from tillers and handing over to the State. In this process they exploited farmers. There was no incentive for the farmers to make improvements on land. So the government has passed legislation in all the states and legally abolished the intermediaries from the scene.

b) Providing security to tenant farmers 

Tenant farmers are those who take cultivable land on rent and share the product with the land owners. The main problems they faced were 

  1. high rent and 
  2. fear of eviction from land by landlords. 

Government has passed many laws to regulate rent and provide security from eviction from land. Government also took steps to provide ownership rights to the tenant. 

c) Ceiling on land holding

Ceiling here means fixing a maximum limit to which an individual can own agricultural land. The purpose is to take away surplus land and distribute the same among the landless and the small farmers. To fulfil this aim the government has fixed the maximum limit in different states.

d) Consolidation of land holdings 

Small and scattered holdings of land are one of the reasons for low agricultural productivity in India. This is an obstacle in the way of modern agriculture in which machines, improved equipment and techniques are used. These problems are being minimized through consolidation of land holdings.

Consolidation of land holdings was stated in India on a voluntary basis through the formation of cooperatives. Consolidation has a favourable effect in certain regions such as Punjab, Haryana and Western U.P. where farmers have began to use modern farm practice and this has led to a growth in agricultural production. However, the pace of consolidation across the country is still very slow.

2. Technology Measure

a) Irrigation facilities 

Irrigation is an important factor that affects agriculture production. Even today 70% of the cultivated land is dependent on monsoon for irrigation. There are two main types of sources of irrigation.

  1. Surface water sources
  2. Ground water sources 

The cropped area of the country is approximately 2000 lakh hectares. In 1950-51 only 225 lakh hectares of area was irrigated. This has increased to 1135 lakh hectares. The increase in irrigated area is one of the factors that has led to the increase in productivity levels of the various crops.

b) Availability of better quality of inputs

i) Seed

Improved seeds can play an important role in increasing productivity. This has been amply proved by the experience of many countries and also by the use of high-yielding varieties of wheat in Punjab, Haryana and Western Uttar Pradesh in our own country. Farmers should also be educated in the methods of sowing, maturing and irrigating the new high-yielding varieties of seeds.

ii) Fertilizer

The peasant has from time immemorial been using organic manures to restore the fertility of soil. Another method is to leave the land fallow to restore its fertility. However to achieve greatest yield there is a need for more use of chemical fertilizers.

The use of fertilizer is more efficient when the land under cultivation is adequately irrigated. Thus, adequate irrigation facilities must go hand in hand.

Also, the ratio of use of nitrogenous, phosphatic, potash fertilizers in India is 8.5:2.5:1 when the ideal ratio 4:2:1. Thus, we need to move towards the use of not only a greater amount of chemical fertilizers but use in ideal ratio. 

iii) Pesticides

Pest and various plant diseases destroy crops. There are two types of measure to solve the problem. Firstly, agricultural research is being undertaken to develop such varieties of crops which can more effectively resist pests and diseases – this is preventive measure.

Secondly, there is a curative measure-spraying of pesticides and insecticides. However we must be sure that the pesticides used are harmless to both crops and the health of human beings. These should be environmentally friendly. Bio-pesticides, e.g. those based on neem and other bio-chemical product are being used to control the problem of pests. In India there is an Integrated Pest Management (IPM) programmed. It aims at controlling pests and gives training to farmers in method of controlling pests.

c) Provision of rural credit

After Independence, a number of institutional agencies have been set upto provide credit to the farmer on easy and fair terms.

Cooperative credit societies, regional rural banks and commercial banks are some examples. The apex of all these institutions is National Bank for Agriculture and Rural Development (NABARD).

d) Provision of other facilities

Regulated markets have been set up all over the country. These markets have a system of competitive trading which makes it possible for farmers to sell their crop at the maximum available price. These markets are managed by committees comprising growers, traders, local bodies and the state government. The farmers have a number of benefits in this market. They get correct information about the market, correct weight and fair market price.

The government set up the Central Warehousing Corporation in 1957, Warehousing Corporation has also been set up in states. These corporations acquire and build godowns and run warehouses for the storage of agricultural produce. In recent years, there has been considerable improvement in the warehousing facilities in the country. These help prevent small farmers from making distress sale of their crops immediately after the harvest.

5. Write short notes on 

a) Extensive and intensive cultivation

Ans. Intensive cultivation implies constant raising of crops from the same plot of land. Thus, if more and more capital and labour are applied to the same plot of land, the system of cultivation is known as intensive. Greater application of labour and capital involves the use of artificial irrigation, deeper ploughing, sowing of improved seeds, use of artificial manures and fertilisers and of modern implements and machinery.

By cultivating his land more intensively, the farmer tries to make the maximum use of it. This method is usually followed in those countries where land is relatively scarce and the size of population is large.

Extensive cultivation, on the other hand, implies use of land on a large scale. Here, the farmer can have as much land as he can manage. The method of cultivation may be primitive and un-scientific. The yield per acre may be comparatively low. The farmer may move from one plot of land to another. He may bring about many improvements in cultivation but this would involve extra expenditure and create many problems. Such methods were followed in the last century by countries like the U.S.A

b) Productivity in Indian agriculture

Ans. The term productivity in general means the total output per unit of the factor input. For example, land productivity means outputs per hectare of land. Productivity is an average and is calculated by dividing the total output of a particular crop by the total cultivated area under that crop.

Total physical output of a crop = Total cultivated area of the crop / Productivity of land 

c) Sources of institution rural credit

Ans. After Independence, a number of institutional agencies. have been set upto provide credit to the farmer on easy and fair terms. Cooperative credit societies, regional rural bank and commercial banks are some examples. The apex of all these institutions is National Bank for Agriculture and Rural Development (NABARD).

i) Cooperative Credit Societies

The most important source of institutional credit is Cooperative credit societies. Cooperative credit is one of the cheapest and best sources of rural credit.

ii) Bank including Regional Rural Bank

When the 14 major banks were nationalized in 1969, agriculture was designated as a priority sector. In addition to Commercial Banks there are Regional Rural Banks and Land Development Banks. Regional Rural Banks give loans to agricultural labourers, small and marginal farmers and rural artisans. Land Development Banks (LDBs) give loans for land reclamation, digging of wells, buying of land and machinery etc.


NABARD was set up in July 1982. It is the apex body in the field of rural credit. NABARD provides credit to the agricultural sector through cooperative credit societies, regional rural bank etc. It provides financial support and ensures coordination in the working of various rural credit institutions.

The contribution of institutional sources has increased considerably. In 1950-51 it was only 7 percent. By 1981 it had increased to 63 percent.

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