- Fragmented Land Holdings: Average land holding is small (1.08 ha).
- Low Productivity: Productivity of most crops is low, below world average.
- Monsoon Dependency: Approx. 50% of cultivable land dependent on monsoon.
- Underemployment: Significant disguised unemployment in agriculture.
- Market Distortions: MSP-based procurement creates distortions.
- Inefficient Subsidies: Subsidies on fertilizers, power, irrigation lead to inefficiency.
- Lack of Diversification: Farmers stick to MSP-supported crops.
- Environmental Issues: Overuse of water, pesticides, fertilizers.
- Credit Access: Small and marginal farmers get limited subsidized loans.
- Infrastructure: Inadequate post-harvest management, cold storage, logistics.