For decades, agriculture has been associated with production of essential food crops.
At present, agriculture above and beyond farming includes forestry, dairy, fruit cultivation, poultry, bee keeping, mushroom, arbitrary, etc.
Today, processing, marketing and distribution of crops and livestock products etc. are all acknowledged as part of current agriculture.
Thus, agriculture could be referred to as the production, processing, promotion and distribution agricultural products.
Agriculture plays a critical role in the entire life of a given economy.
Agriculture is the backbone of economic system of a given country.
In addition to providing food and raw material, agriculture also provides employment opportunities to very large percentage of population.
Source of Livelihood
The main source livelihood of many people is agriculture.
Approximately 70 % of the people directly rely on agriculture as a mean of living.
This high percentage in agriculture is as a result of none development of non-agricultural activities to absorb the fast growing population.
Contribution to National revenue
Agriculture is the main source of national income, though with industrialisation,its share is decreasing.
Supply of Food as well as Fodder
Agricultural sector provides fodder for domestic animals .
Cow provides people with milk which is a form of protective food.
Moreover, livestock also meets people’s food requirements.
Significance to the International Trade
Agricultural products like sugar, tea, rice, spices, tobacco, coffee etc. constitute the major items of exports of countries that rely on agriculture.
This helps to reduce countries unfavorable balance of payments as well as saving foreign exchange.
This amount may be well used to import other essential inputs, machinery, raw-material, and other infrastructure that is helpful for the support of country’s economic development.
Marketable Surplus
The growth of agricultural sector contributes to marketable surplus. Many people engage in manufacturing, mining as well as other non- agricultural sector as the nation develops.
All these individuals rely on food production that they might meet from the nation’s marketable surplus.
As agricultural sector development takes place, production increases and this leads to expansion of marketable surplus. This may be exported to other nations.
Source of Raw Material
The main source of raw materials to major industries such as cotton and jute fabric, sugar, tobacco, edible as well as non-edible oils is agriculture.
Moreover, many other industries such as processing of fruits as well as vegetables and rice husking get their raw material mainly from agriculture.
Foreign Exchange Resources
The nation’s export trade depends largely on agricultural sector.
For example, agricultural commodities such as jute, tobacco, spices, oilseeds, raw cotton, tea as well as coffee accounts for approximately 18 % of the entire value of exports of a country.
This demonstrates that agriculture products also continue to be important source of earning a country foreign exchange.
Great Employment Opportunities
Construction of irrigation schemes, drainage system as well as other such activities in the agricultural sector is important as it provides larger employment opportunities.
Agriculture sector provides more employment opportunities to the labor force that reduce the high rate of unemployment in developing countries caused by the fast growing population.
Economic Development
Since agriculture employs many people it contributes to economic development.
As a result, the national income level as well as people’s standard of living is improved.
The fast rate of development in agriculture sector offers progressive outlook as well as increased motivation for development.
Hence, it aids to create good atmosphere for overall economic development of a country. Therefore, economic development relies on the agricultural growth rate.
Source of Saving
Development in agriculture may also increase savings. The rich farmers we see today started saving particularly after green revolution.
This surplus quantity may be invested further in the agriculture sector to develop the sector.
Food Security
A stable agricultural sector ensures a nation of food security. The main requirement of any country is food security.
Food security prevents malnourishment that has traditionally been believed to be one of the major problems faced by the developing countries.
Most countries rely on agricultural products as well as associated industries for their main source of income.
Madhya Pradesh
Madhya Pradesh is the second largest state in the country in terms of area constituting 9 percent of the total geographic area of the country and ranks at sixth position with 14 the total population of 72 million.
The state is known for its abundant natural resources including forest, minerals, rivers and valleys.
There are 11 agro-climatic zones, five crop zones and varying land use, soil types, rainfall and water resources, distributed across 51 districts in the state.
Also, a significant proportion of tribals and dalits reside in the state together comprising 35% of the total state 15 population .
As far as Madhya Pradesh is concerned, the role of agriculture and allied sector including animal husbandry and fisheries is much wider and significant due to agrarian nature of the state economy.
Importance of Agriculture in M.P.
The agricultural sector contributes nearly one third to the overall state GDP and has ninety percent share in the primary sector of State GDP. The sector is also contributing 24.9% to State's GDP at constant prices (2004-05 prices) and 33.6% at current prices.
It has the high dependency of overall population and significant proportion of rural population also depends on the sector for its basic source of livelihood through both direct activities and indirect linkages. According to Census 2011, 69.8 % of the total workers and 85.6 % of the total workers in rural areas are dependent on agriculture for livelihood in Madhya Pradesh.
The direct activities include production of variety of farm produce both for self-consumption and earning income by selling of crops and livestock products and offering employment opportunities in related sectors.
The indirect activities comprise supplies and services related agriculture like raw material to agro-processing, repair and maintenance of agricultural machinery and implements, marketing, storage and warehousing, seed production and so on.
Also, agriculture and allied sector plays a vital role in pushing capital formation by adding support infrastructure with construction of roads, dams, minor irrigation projects, promoting cottage and small scale industries.
It is the only sector providing employment and livelihood options to majority of the rural population in the state. According to Census 2011, 69.8 % of the total workers and 85.6 % of the total workers in rural areas are dependent on agriculture for livelihood in Madhya Pradesh.
There are numerous empirical evidences showcasing the correlation of positive agriculture growth and socioeconomic
development status of the citizens by way of making a dent on poverty, ensuring food and nutritional security, raising income levels and employment opportunities etc.
It is also true that a thriving rural livelihood will lead to a more refined urban life by reducing the migration from rural areas and putting less pressure on urban infrastructure and services.
