Institutional Support for Agriculture

By: EconomyWatch   Date: 21 April 2010

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Institutional Support for Agriculture is required by the farmer to be able to produce more agricultural output in accordance with the market demand. Institutional Support can even help the farmer to produce surplus output. It can be said that, when agriculture transforms itself into market driven agriculture then it stands at the same platform of any industry. With the increase in purchasing power of the people, the demand of food increases. This demand has to be supported by sufficient amount of agricultural output that could be produced by using technical machineries, high quality seeds and fertilizers and improved irrigation facilities. In order to make all these facilities available to the farmers institutional efforts are required. With this view in mind the institutions have been established, which help the farmers to grow more crops.

The Role of Technological Progress

For the growth of the agricultural sector of any economy, technological advancement is absolutely necessary. The development of technology and modern machineries which can be used in agriculture depends on proper research. This research work is required not only for the cash crops that can be exported but for all types of food grains. Not only centralized work stations but also individual experiment centers are required to conduct the research and find out the applicability of the machineries in agriculture. A fully integrated system of research centers are required for a wholesome development in agriculture.

Agricultural Extension Services

The agricultural extension services are required since it is very important for the farmers to learn how to plow their fields intensively. Under the Scheme of Agricultural Extension Services, training centers can be set up in various areas to train the farmers regarding the application of machineries in agriculture. Moreover, it is very important for the farmers to possess the managerial skills to be able to manage the whole system right from sowing the seeds to selling the produce in the market. If the farmers are able to gain the basic knowledge about the whole agricultural system then only the agricultural extension service can be considered as successful.

The Credit System

Farmers need to buy new machineries as well as industrially manufactured inputs for growing quality crops in large amounts. This requires money on the part of the farmer. The farmers do not always have a ready cash. Therefore the purchasing of the machineries depend on the availability of credit. So, it is very important to develop a system which will make the availability of credit easier.

The Role of the Market

The market plays a very important role in today's world. The crops which the farmers produce need to be marketed properly so that farmers receive justified amount of profit. The market acts as an intermediary between the producer and the buyer and helps the producers to obtain profit, which can be invested in future course of agricultural production. The proper channelizing of agricultural goods is also very important in this respect.

Group activities are equally important since organizations like the cooperatives also help the producers to work through an integrated system.


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