Growth of the Indian economy is one of the contributing factors to escalating oil and food prices in the world. Oil is an area that little can be done about by India. Agriculture and food production is another issue altogether. But, it is an area that will require new thinking by the government in order to find a solution.
The Green Revolution saw India transform from a nation that was starving into a nation that fed itself. The evolution into an industrialized economy however, has left agriculture behind and placed pressure on farmers that was unheard of several years ago. State control of agricultural infrastructure such as granaries and also policies regarding pricing of commodities have slowly pushed the farm sector to the brink of collapse in many areas.
Almost 50% of India is arable land suitable for agriculture. Much of that land is being lost to urbanization and industrialization. There is little incentive for farmers to produce crops when they can sell their land to developers at inflated prices. Especially when they are barely surviving from farming income.
India needs to revisit its internal agricultural policies. They need to re-examine pricing mechanisms for all inputs and all produce. They need to address infrastructure needs. Instead, the government policies seem to focus on industrial and technological sectors at the expense of agriculture. Growing import requirements for food may cause them to look again. The next Green Revolution in India will need to include better mechanisms for food transport and a free-market approach to prices.
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