Supply response for irrigated crops in Madras State, India

[From the Introduction] The economic development in India depends in large measure on the rising productivity of its agriculture. This agricultural productivity can be increased only by increased use of such capital inputs as fertilizers, pesticides, and machinery which are produced in the nonagricultural sectors. This sectoral interdependence has been realized increasingly in planning for economic development in India. It has been argued that the performance of agricultural sector, especially during the present decade, was handicapped by poor monsoon rains, failure of nonfarm sectors to supply enough agricultural inputs, and lack of proper price policy.¹ Policies for increasing productivity must have four strategies. First, the tenure structure of agricultural production must be reorganized to provide motivation for greater efficiency in production. Land reform measures embracing all aspects of tenure are relevant cases in point. Second, improved methods of production, based on new technology, must be developed. The prime objective must be to reduce the lag between development and adoption, and this can be accomplished only through intensive extension education programs. Third, the supply of the specialized inputs required for greater production must be provided. Fourth, a comprehensive price and income transfer policy to provide income incentives and to guarantee a minimum annual income by minimizing the price uncertainties must be formulated.²