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  • Publication | 2022

Structural Reforms and Governance Issues in Indian Agriculture

Global Food and Nutrition Security

An examination of India’s agricultural development since Independence brings to light the structural and institutional reforms that have been effected. The most significant advances were: consolidation of land holdings, public investment in agriculture and major and medium irrigation systems, improved prices and procurement policies and regulated marketing of agri-produce. In addition, the availability of institutional credit improved as a result of changes in the financial architecture comprising commercial banks, regional rural banks and cooperatives. The Food Corporation of India (FCI) enabled easy procurement of wheat and paddy at preannounced minimum support prices (MSP), while the establishment of regulated wholesale markets facilitated the sale of produce under the Agriculture Produce Market Committee (APMC) Act, 1966. Stocking limits for cereals and pulses prescribed under the Essential Commodities Act (ECA), 1955 helped check hoarding. The government also enlisted agri-input companies to ensure uninterrupted supply of seeds, fertiliser, pesticides and other inputs to farmers at prices lower than their existing market rates, assuring them timely payment and compensation for any loss incurred.