The main reason for the continued low use of quality seed has been inadequate access. Though the private sector has taken a lead in harnessing technological innovation in some segments, it has concentrated on particular types of seed. It has also occasionally supplied spurious and low quality seeds and charged exorbitant prices. There is, thus, a strong need to promote competition, strengthen the role of the public sector and encourage investment in seed production.

During the 1960s and 1970s there was an intense debate on the observed inverse relationship between farm size and per hectare agricultural productivity in India. It was subsequently argued that the higher productivity of smallholdings would disappear with the adoption of superior technology, modernisation and growth in general. However, close to half a century later, National Sample Survey data from the initial years of the 21st century show that smallholdings in Indian agriculture still exhibit a higher productivity than large holdings.

The global economy has faced two serious but unconnected crises in quick succession during the past four years. The years 2007 and 2008 witnessed an unprecedented rise in food prices which forced the global community to pay more attention to the agricultural sector.

Agriculture is the core sector of Indian economy. The share of agriculture and allied sectors in total GDP presently is about 16 percent and it engages nearly 52 per cent of the national workforce. Agriculture therefore continues to remain the principal source of livelihood for the majority of households in India.

The main reason for the current surge in food prices is the supply shock due to the drought in 2009 and the carry-over effect of the low growth of food production in 2008-09. As the frequency of such shocks is expected to rise, India needs to have an effective food management strategy to deal with these episodes.

The deficiency and uneven distribution of rainfall during the 2009 monsoon has brought several issues to the fore: rising water demand from various sectors, regional effects of a drought and the failure of the India Meteorological Department to provide credible forecasts at the disaggregate level.