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Agribusiness in India: Issues and Challenges

  • V. Basil Hans

Agri-business has evolved out of the new input-output matrix. Application of managerial concepts, models and strategies at both individual and institutional levels are concrete with set results. The central Government has introduced a Scheme for Agri-business Development in the current Five Year Plan. Agriprenuers are now realizing the importance of quality changes and value addition in agriculture. Despite all these healthy trends, agri-business has its challenges for rural development in terms of resource utilization, rural livelihood and rural ecology. Issues regarding appropriate technology, labour productivity, cooperation, credit, and marketing and extension services are crucial even in the new set-up of reforms. Risk and uncertainty being inevitable parameters of modern business, serving farmers and saving farming has become the need of the hour. Public-private partnership and other support mechanisms will have to be strengthened to tackle the challenges. This paper examines how under liberalization and globalisation, agri-business has opened new vistas for growth and development of the rural economy in general and of the agrarian economy in particular. It also analyses the challenges in developing agribusiness arising out of the diversity and/or paucity of resources and difficulties of adaptation.

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Article provided by Research Centre for Social Sciences,Mumbai, India in its journal Journal of Global Economy.

Volume (Year): 2 (2006)
Issue (Month): 2 (June)
Pages: 119-133

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Handle: RePEc:jge:journl:225
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