State Induced Capital Penetration of Agriculture Sector in India

• Main Author: Kumar, Anirudh
• Other Authors: YSI Asia Convening 2019
• Format: Conference or Workshop Item
• Language: English
• Published: H. : ĐHKT 2020
• Subjects: Agriculture Sector; India; Capital Penetration
• Online Access: http://repository.vnu.edu.vn/handle/VNU_123/70884
• Institution: Vietnam National University, Hanoi

The paper looks at State induced capital penetration of Indian Agriculture. The objective is to unravel those policy mechanisms and the context of the Indian economy which are unable to arrest the distress in Agriculture sector which is going through a crisis. We begin our study by providing a brief overview of concentration in Indian economy by outlining some policies that are in work in Indian economy post-independence that directly or indirectly signals towards increasing private corporate presence in Indian economy. Though Private corporate presence in itself is not a problem but withdrawal of state support, framing laws which rather than helping farmers become another means by which they are kept in a perpetual state of distress, amounts to state abdicating its responsibility towards farmer and state’s inducement to private capital penetration then become a means to increase corporate profit at the cost of the crisis in agriculture. The paper has been divided in four sections, the first section attempts to highlight the historical context of corporate presence and outline some of the policies which works as inducements for private capital to foray in agriculture sector. The second section looks at the corporate presence and makes a case for concentration from the perspective of Agri- input and Agri-output markets. The third section looks at the fragmentation of Agriculture sector and looks at the growing interlinkages between Agriculture and Private corporate sector, highlighting the interdependence among them. Followed by conclusion in the last section.