According to the World Bank, the major agricultural problem facing India is its large agricultural subsidies that are hindering productivity-enhancing investment. Excess regulation of agriculture has led to increased costs, price risks and uncertainties. The government’s intervention in labor, land and credit markets has negatively impacted India’s agriculture. Other issues include population pressure, lack of modern technology and poor storage facilities.
Another challenge faced by Indian farmers is their dependency on nature and poorly maintained irrigation systems. The county’s current agricultural practices are neither economically nor environmentally sustainable, which leads to low yields of most commodities. Indian agriculture is plagued with knowledge and infrastructure inadequacy, particularly in rural areas. Issues related to irrigation facilities, market infrastructure and transport infrastructure have significantly added to farmers’ cost of operations.
India’s huge population has created high demand for land, and virtually every parcel of land has been brought under cultivation. The pressure of the bulging population and the practice of subdivisions among family members have led to excessive division, hampering mechanization. As a result of growing crops for several years, the fertility of Indian soils has been depleted. Storage of food grains is a challenge in India, and approximately 10 percent of the harvest goes to waste every year due to the absence of good storage facilities.