Agricultural Statistics of Organic Sector Development In India

The Role of Agriculture in Poverty Reduction and the Challenges of Small-scale Farming

Abstract

No country has been able to sustain a speedy transition out of povertywithout raising productivity in its agricultural sector. Despite thishistorical role of agriculture in economic development, both the educationaland donor communities lost interest within the sector, beginning in themid-1980s. This was principally owing to low costs in world markets for basicagricultural commodities, caused mostly by the success of the green revolutionin Asia. After 20 years of neglect, interest in agriculture is returning. Thispaper explores the explanations why agriculture is back on the policy agendafor donors & poor countries alike. The foremost necessary reason is newunderstanding that economic process is that the main vehicle for reducingpoverty and that growth within the agricultural sector plays a significant roletherein overall growth also as in connecting the poor to growth. There is a pointy discussion, however, between “optimists” and“pessimists” over the potential for small-scale agriculture to continue to playthese historic roles. In a world of open trade, prepared accessibility of lowcost food in world markets, continuing agricultural protection in wealthycountries, and economies of scale in access to food supply chains that areprogressively dominated by supermarkets and export consumers, large-scale farmswith progressive technology and access to economic infrastructure will pushsmallholders out of business markets. Consequently, the paper concludes,geographic coverage and operational potency of rural infrastructure, coupled toeffective investment in modern agricultural analysis and extension, can verifythe longer term role for agriculture in poverty reduction.