Privatisation of Farming Sector In India

In India, the farming sector has been one of the most neglected. Despite India having the third-largest agricultural land after Russia and China, it ranks only at 42 on list of countries with a large number of farms. The reason for this neglect is that agriculture is not an industry like manufacturing or power generation and distribution but an artisanal sector that requires labour-intensive inputs with low productivity levels. However, in recent times there have been several trends in India which have made farming more attractive to investors looking for investment opportunities. This article will discuss some of these trends from an investor’s perspective as well as examine their impact on farmers and rural households.

What is Privatisation?

Privatisation is the process of transferring a business from public to private ownership.

It can be partial or complete, which means that there can be a transfer of ownership only if it is not possible for the government or its agencies to buy out all shares in your company through an auction process. The other option would be that you sell your entire business completely and then lease it back to yourself (or someone else).

If you choose this route, then there will always be some form of governmental control over how long you have leased it for and what rent rate you charge for running your farm or plantation.

Reasons for Privatisation of Farming in India.

A key reason for the privatisation of farming in India is the increase in land prices. This can be attributed to various factors such as high inflation and interest rates, which have resulted in an increased demand for agricultural land. The government has also been promoting private investment through several methods such as fiscal incentives and tax holidays etc., which has also helped increase land prices. As a result of these factors combined with other factors such as decline in productivity, decline in government support, decline in government investment and low fertility rate among women make it difficult for farmers to maintain their households if they do not become owners of lands or businesses themselves.

Benefits of Privatisation of Farming in India.

There are many benefits of privatisation of farming in India. The first and foremost benefit being increase in productivity. With the help of privatization, farmers can achieve higher productivity by ensuring that their land is used efficiently and effectively to produce maximum amount of food with minimal input requirements.

Another significant benefit is better quality of produce which can be achieved through proper management practices like use of fertilizers and pesticides as well as good irrigation facilities etc., which ensures that there is no wastage from farm to table. As a result, consumers also get better quality products at affordable prices.

The next major advantage associated with government-owned farms is reduction in costs since they do not have any overhead expenses such as rent payments, salaries etc., while private companies would have these expenses if they were owned by individuals or other entities instead! This translates into lower overall expenses for all involved parties involved including investors who provide capital funds towards modernizing existing infrastructure within rural communities across India’s countryside where most people still rely on traditional methods when it comes time to harvest crops each year.

Challenges in privatisation of farming in India.

There are a number of challenges in privatising the farming sector in India.

• Infrastructure - The infrastructure is not adequate and there is a lack of trained manpower. This makes it difficult for farmers to take up the new technology and processes introduced by the private players.

• Training - Many farmers have little knowledge about how to use modern agricultural technologies like drip irrigation, which makes them dependent on traditional methods like sprinkler irrigation or manual labour for production purposes. It also makes them reluctant to adopt newer technologies because they fear that their yields will not increase as much as expected due to lack of proper training on its usage.

Privatization can bring in greater capital and technology to the sector

The government of India is planning to privatize the farming sector, which will bring in more capital and technology to the sector. There are several benefits that will accrue to farmers as a result of this move:

• More investment in the sector. As investors pour into the field, they will be able to provide new capital for agricultural development, which can help increase productivity and yields on existing farms. This will also lead to more jobs being created in these fields at higher wages than what exists today; thus, improving living standards for rural communities across India (and beyond).

• Better quality produce: By bringing private companies onto their land with better technology and resources than those provided by governments themselves—and providing them with tax breaks as well—farmers are going to get better quality produce at lower costs than ever before possible without any interference from other stakeholders like consumers or retailers who want cheaper prices on their products but don't necessarily care about quality either way because those things just aren't important enough yet...

Conclusion

Privatisation of farming in India is a step towards improving the sector. With greater capital and technology, farmers can get better yields and earn more profits from their produce. However, there are some challenges which need to be addressed before implementing this policy.