The Achievements And Limitations Of Technological Transfer Economics Essay

By July 16, 2017 Economics


The fact that nutrient is one of the basic demands of universe population needs no referencing. In the early times, addition in the production of harvest was due to increase in the country of cultivation but in today ‘s epoch, scenario has changed. The production of agricultural merchandises is increased with the addition in the productiveness of the land ( per acre or per hectare ) . The system of agricultural production has undergone a drastic alteration from the footing of natural resources to scientific bases, which involved engineering revolution in the agricultural sector. The traditional assortment of seeds was non able to give maximal productiveness from the land with dependance on unsure climatic conditions, which resulted in black state of affairs like dearth ( Freebairn, 1995 ) . On the other side, authorities besides moved focus from agro-based economic system to industrial based economic system. This shifted the labour force from harvest production to industrial goods production and resulted in low productiveness of agribusiness with the addition in population worldwide.

The biggest technological revolution in the history of agribusiness in developing states was High Yielding Assortments ( HYV ) of seeds with the aid of assorted establishments and federations, peculiarly International Rice Research Institute ( IRRI ) in the Philippines in 1960 and International Maize and Wheat Improvement Centre ( IMWIC ) in Mexico in 1967. These new seeds increased the productiveness of land quantitatively every bit good as qualitatively by enabling to bring forth 2-3 harvests per twelvemonth ( Hazarika, 2002 ) . By 1982-83 more than half of the country of cultivation of wheat and rice in developing states including India, Bangladesh, Nepal, Pakistan, Thailand, Sri Lanka was adopted through these high giving up assortments of seeds ( Dalrymple, 1985 ; Basu, 2009 ) . India introduced these intercrossed seeds in 1961 named ‘Green Revolution ‘ with the aid of authorities, following new policies and plans like Intensive Agricultural Development Programme ( IADP ) started in 16 territories to supply information to the husbandmans ( Mann, 1989 ) .

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Scenario of India

By the early 1960 ‘s India faced the job of nutrient deficit instead relied on PL480 nutrient grant from US. Writers have argued about the success of authorities of India in work outing nutrient deficit job in relation to poorness. With the debut of high giving assortment seeds in India, authorities made the state self-sufficient for the nutrient demand but failed to work out the issue of poorness by go forthing the market to work itself. HYV increased the measure of produced harvest with the addition in the cost of production but it was found that in the Karnal territory of Haryana in 1967-68 HYV wheat seeds gave Rs.207 more return per acre as compared to local assortment whereas in the Thanjavur territory of Tamil Nadu in 1966-67 HYV rice seeds gave Rs.168.57 more return per acre. HYV seeds produce more outputs in comparing to traditional local assortment seeds. For case, in instance of wheat, mean green goods from HYV seeds was 12.3 quintals per acre and from traditional assortment it was 7.5 quintals per acre of land whereas in instance of rice seeds, it was 10.7 and 7.8 quintals per acre of land severally. Writers have argued about the advantages and disadvantages of HYV and local assortment seeds as shown in the tabular array below:

Relative Advantages and Disadvantages of HYV and Traditional Seeds

HYV Seeds

Traditional Seeds




Shorter Maturity continuance

Longer adulthood continuance


Higher output per hectare

Lower output per hectare


Higher end product monetary value

Lower end product monetary value


Higher Net income

Lower net income


Multiple Cropping





Higher Seed Price

Lower Seed Price


Short tallness

Long tallness


More prone to plagues and diseases

Less prone to plagues and diseases


Less byproducts

More byproducts similar hay as taller workss


Higher cultivation cost

Lower cultivation cost


Higher fluctuation ( fluctuation ) in output

Lower fluctuation ( fluctuation ) in output

Beginning: Goyari and Sharma ( 2008 )

HYV seeds required assured H2O supply, big doses of fertilisers and pesticides depending upon the land birthrate and dirt wet conditions, which farther heighten the demand of inputs including irrigation installations like tractors, tubing Wellss, convulsing and reaping machines. This made the private sector interested in the HYV seeds. The success of HYV seeds in India depended upon the authorities support, fiscal agencies of husbandmans and the supply of inputs.

In mid-1960 ‘s the irrigation system from canals, tubing Wellss and dug Wellss was under developed as three quarters of land depended upon rainfall. The function of authorities in the green revolution in India is rather critical. Due to incomplete information available about the husbandmans ‘ fiscal strength in relation to cost of production with HYV seeds, private sector was loath to put. In the early 1970 ‘s, cost of production of HYV was Rs. 1,125 per hectare but a little or fringy husbandman with ownership of 2 hectares of land could hold afford to put merely Rs. 350 per hectare. This made the demand of loan from the Bankss and it required lower limit of 10 estates of land to acquire loan. About 80 % of the husbandmans were keeping less than 10 estates of land ensuing in benefits to middle category and rich husbandmans merely, farther doing unequal distribution of wealth and accordingly increasing poorness to 61 % within three old ages after the debut of HYVP. Thus, the authorities intercession was rather indispensable. Furthermore, the authorities of India adopted new programmes like ‘Garabi Hatao ‘ and policies to administer irrigation installations to the hapless and supplying finance by nationalising 14 of its largest Bankss in 1969. In order to command the monetary values of inputs for HYV seeds authorities took production of inputs in its ain custodies and offered significant subsidies on the purchase of inputs.

Despite of the authorities intercession, big husbandmans took benefit of HYV seeds and changed the whole construction of the rural economic system due to big mechanisation on the Fieldss. Large land proprietors alternatively of renting out to renters, got entree to inputs easy and took aid of hired labour ( Rosset, 2000 ) . In short, development in the agribusiness sector in India in 1960 ‘s solved the job of nutrient deficit but non the poorness.

Scenario of Pakistan

Pakistan was besides one of the states during the green revolution period which adopted the new miracle seeds engineering to increase the output of the land from the scattering of semi midget wheat and rice assortments. The growing of agricultural end product was increased from 6 % to 15 % in 1961-65 and 1967-68 severally ( Byerlee and Siddiq, 1994 ) . Pakistan besides got the location advantage due to its homogenous environment and immediate irrigation system, which made the fertile land of the state more capable of following HYV seeds. During 1966-69 in West Pakistan the production of wheat increased by 79 % whereas production of rice increased by 61 % ( Child and Kaneda, 1975 ) .

Pakistan has showed the relation of growing in the little graduated table fabrication industries with the growing in the agribusiness sector during green revolution period. With the addition in the demand of inputs like Diesel engines, tubing Wellss, pumps, tractors, reaping machines, etc. the little graduated table technology industry got a opportunity to spread out and turn to heighten the new engineering in the agricultural sector. The development in the fabrication industry was really unprompted as the authorities of Pakistan did non detect this development in the industry and it grew without acquiring any aid from the authorities in footings of no subsidies, no revenue enhancement grants, no particular recognition agreements or proficient aid ( Azhar, 1991 ) .

Though West Pakistan, chiefly Punjab, showed development from the new engineering but unable to maintain up with its planning. The part of HYV seeds was found to be limited with the type of harvests ( wheat, rice, maize, bajra and jowar ) in Pakistan. Wasim ( 2007 ) in a survey of 44 old ages from 1951-52 to 1994-95 of HYV seeds in Pakistan, demonstrated that during the period of green revolution the growing of HYV wheat seeds in the production, output and country is important. In instance of rice and corn, production and output had been increased due to the use of HYV seeds whereas jowar HYV seeds showed a growing in the output of land per unit country but with a lessening in production and country of cultivation of jowar in the same period of green revolution.

Restrictions of engineering development

The debut of HYV seeds was with the outlook of taking hungriness and poorness in the states by increasing the end product of nutrient grains and the income of husbandmans. Rosset ( 2000 ) found the usage of these charming seeds in half of the production of wheat in Asia, Africa and Latin America, approximately 75 per centum of rice in Asia and 70 per centum of universe ‘s maize. But the addition in the productiveness of nutrient grains was at the cost of increasing poorness as most of the benefits of these seeds were gained by big husbandmans. For case, in Muzaffarnagar ( Uttar Pradesh, India ) 60 per centum of the income of families ‘ farm was declined in 1967-69 while in Ferozepur ( Punjab, India ) chiefly big husbandmans gained the advantage with the addition in income from Rs. 90 in 1956-57 to Rs. 432 in 1969-70 but the little husbandmans ‘ portion of income declined from 8.18 per centum to 7.84 % in the same period ( Basu, 2009 ) . It was besides apparent that the ownership of land by big husbandmans ‘ increased by 9.5 per centum between 1955-56 and 1967-68 in Punjab with merely a 4 % addition in the farm sizes of 20-25 estates and 40 % addition in the farm size of 100-150 estates ( Basu, 2009 ) . The technological promotion in the agribusiness sector resulted in the unequal distribution of income and increase in poorness in India and Pakistan ( Falcon, 1970 ) .

High giving assortment seeds with shorter adulthood period enabled husbandmans to make multiple cropping on the same Fieldss which resulted in the addition in the figure of yearss of working in a twelvemonth in the rural countries. The authorities with a idea of ‘trickle down ‘ consequence taking attention of poorness left the market to work itself. It was assumed that with the addition in end product nutrient monetary value will decrease and employment will increase. But during the period of green revolution there was an addition in poorness from 18 % in 1960-61 to 31.8 % in 1964-65 and to 63.1 % in 1967-68 with Punjab being the most affected ( Basu, 2009 ) . The big mechanisation required with HYV seeds provided benefits to rich and middle category husbandmans, which resulted in the lessening of occupancy cultivation and demand of hired labour. Due to the absence of rigorous authorities intercession, Bankss provided loans to the rich and in-between category husbandmans with assured H2O supply, doing loans available at a cheaper rate and decreased collateral demands for the loan agreements. This increased the handiness and demand of loans to buy labor-saving devices like tractors, convulsing and reaping machines by the landlords. This big technological alteration in the agribusiness sector changed the construction of agricultural economic system of occupancy cultivation, which was a prevailing characteristic of Indian agribusiness, by cut downing the demand of labour and diminishing the loans to renters from the landlords. Therefore, this consequence prohibited the so called drip down consequence to take topographic point.

Socio-economic and Ecological Impact

Despite the debut of new miracle seeds and engineering the job of poorness was non improved even the nutrient production was non at the same degree in different countries in a state instead the term ‘revolution ‘ can be related to merely about 10-15 % of Asia ( Falcon,1970 ) . The new engineering was restricted to limited figure of husbandmans as seen in Ferozepur ( Punjab, India ) with merely 10 % of families holding entree to the engineering ( Basu and Mallick, 2008 ) .

In 1970 ‘s authorities realized the market failure of cut downing poorness and took measure frontward to set about anti-poverty programmes like poorness relief programmes, Integrated Rural Development Programme ( IRDP ) , etc. The IRDP helped about 30 million households to go self employed during the 6th and 7th program periods. From mid-1970 ‘s authorities started to switch the focal point from green revolution and therefore, this period is referred as post-green revolution period. The authorities widened the country of provision of inputs by nationalized Bankss, offering loans to little and fringy husbandmans with low involvement rates and carefully distribution of inputs like fertilisers. This empowered a higher growing rate at all-India degree during the station green revolution period to 2.87 % in contrast to 2.49 % in 1967-68. Furthermore, it besides declined the figure of people below the poorness line from 45.90 % in 1972-73 to 25.97 % in 1990-91 ( Basu, 2009 ) .

HYV seeds provided the chance to make multiple cropping in the same field. These seeds required assured H2O supply and big doses of fertilisers and pesticides to increase the output. But due to inordinate use of chemical fertilisers and implosion therapy of dirt it lead to depletion of natural foods in the dirt and made it less fertile. The tabular array below shows the addition usage of fertilisers in India and Pakistan during green revolution period:

Beginning: Falcon ( 1970 )

High use of fertilisers and pesticides kills the natural beings in the dirt and leads to dirty diseases. The flood from the inordinate use of fertiliser applications called for by the new engineering consequences in the annihilation of proteins and monolithic eutrophication of lakes, watercourses and rivers and therefore, impacting the sea life. Not merely sea life but due to toxins present in these biocides the H2O used in the cultivation of harvests gets contaminated and leaves harmful residues in the harvests consumed by human existences ( Cleaver, 2001 ) .


Technological promotion in the agribusiness sector named green revolution was a roar for the growing of agricultural economic system in the development states. HYV seeds helped to bring forth self sufficiency in the nutrient demands of the developing states like India and Pakistan. With the development in the engineering, the demand for advanced inputs like fertilisers, tractors and other irrigation installations increased, which enabled husbandmans to make multiple cropping and higher output per unit of country from HYV seeds. However, due to improper execution of the new engineering it resulted in some drawbacks in the agribusiness sector. Rich and in-between category husbandmans took maximal benefits from HYV programme with the aid of easy entree to recognition market to buy inputs and new engineering. Due to this landlords replaced the construction of agricultural economic system from occupancy cultivation with hired labours. The expected drip down consequence from the addition in nutrient production and therefore increasing employment from multiple cropping, did non take topographic point and poorness issue remain unresolved in India and Pakistan. The displacement of economic system and engineering from labour intensive to capital intensive formation with the inordinate use of chemical fertilisers, H2O resources and pesticides, lead to environmental want and rise in poorness.

The unresolved issue of poorness in the development states forced the authoritiess to step in in the market and take necessary steps to make new employment chances. India realized this shortly and took a lead with the debut of anti-poverty programmes and doing easy entree of the new engineering ( HYV ) and the inputs in the less productive countries of the state ( Basu, 2009 ) .


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