India and China are primarily agrarian economies.About 25 years ago,India was at par with China in almost all the parameters of agriculture sector.However,today the agriculture growth rate in China hovers around 6-8% while India struggles to maintain a steady growth rate of 4 percent.This is despite the fact that India is favourably placed with respect to China in terms of total percentage of arable land,favourable climate as well as socio-cultural factors.
Second,China has superior technological capability in agriculture as it accords primacy to research and development(R&D).China has almost 1500 centres for research and development in agriculture.These profit-making agricultural centres have strong tie-up with the private sector for further investment in agro-initiatives.In contrast,in India,a major chunk of government funding is alloted for the payment of salaries of individuals.A survey states that only three percent of the funding goes directly to research.Consequently,we lack a conducive environment for productive research in the sector.
The reasons why China has prospered far ahead of India in agricultural sector are primarily three fold.First.China has strengthened its infrastructure in agricultural sector-both forward and backward.The Chinese farmers are therefore well secured as the products have a greater shelf-life.They sell their products at remunerative prices.In India,the farmers incur huge losses due to lack of proper infrastructure.Consequently.they had to resort to distress-sale of their products.A fall-out of sustained losses of farmers is that the younger generation is gradually losing interest in farming.
Second,China has superior technological capability in agriculture as it accords primacy to research and development(R&D).China has almost 1500 centres for research and development in agriculture.These profit-making agricultural centres have strong tie-up with the private sector for further investment in agro-initiatives.In contrast,in India,a major chunk of government funding is alloted for the payment of salaries of individuals.A survey states that only three percent of the funding goes directly to research.Consequently,we lack a conducive environment for productive research in the sector.
Third,China has an increasingly liberalised agricultural policy moving away from self-sufficiency to leveraging the competitive advantage with a focus on efficiency as much as equity.The food-processing and horticultural sector has reached new heights as the value-added products garner good revenue from the export-market.India has yet to develop its marketing capabilities and training requirements.
India has to realise its core-competence in the agricultural sector.The good thing about India is that it is naturally endowed with fertile land and favourable climate.Moreover,India has a favourable demographic dividend which further boosts the opportunities in the sector.India cannot afford to remain a silent spectator as the demand for food would steadily rise in the near future.
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