Dairy co-operative in Pondicherry
Dairy co-operative in Pondicherry © Peter ArmstrongAcross the country 75% of farms cover less than two hectares; in Bihar this figure rises to over 95%. Over 60% of crops are rain-fed. The rural investment necessary to support this profile of agriculture - efficient transport and communications, reliable microfinance and cooperative management structures – has not been forthcoming and middlemen hold the upper hand.
Regulations of the World Trade Organisation (WTO) which force Indian farmers to compete on an unlevel playing field have undermined the sector. Agricultural imports have increased four times since the WTO came into effect in 1995. It can be no surprise that India's insistence on special protection for its farmers was a vital factor in the collapse of the Doha round of WTO negotiations.
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