The inputs of modern agriculture are very expensive. This resource-intensive approach has become unmanageable for marginal and small farmers as they have very meagre or no saving to invest in agriculture. To tide over these difficulties, most of such farmers have resorted to availing credit from various institutions and money lenders. Crop failures and low returns from agriculture have forced them to fall in the trap of indebtedness.

A large number of farmers produce crops for self-consumption. These farmers do not have enough land resources to produce more than their requirement. Most of the small and marginal farmers grow food grains, which are meant for their own family consumption. Modernisation and commercialisation of agriculture have however, taken place in the irrigated areas.

Land holding is shrinking further under increasing population pressure. Furthermore, in India, the land holdings are mostly fragmented. Decrease in the average size of landholding leads to low farm productivity. The small size fragmented landholdings are uneconomic.

As per Economic Survey of Maharashtra 2016-17, the share of agriculture and allied activities in the total Gross State Value Added (GSVA) was 12.2 % during 2016-17 against 15.3 % during 2001-02 which shows a declining trend over the period.

Indian peasantry had been exploited for a long time as there had been unequal distribution of land. Among the three revenue systems operational during British period i.e. Mahalwari, Ryotwari and Zamindari, the last one was most exploitative for the peasants. After independence, land reforms were accorded priority, but these reforms were not implemented effectively due to lack of strong political will. Most of the state governments avoided taking politically tough decisions which went against strong political lobbies of landlords. Lack of implementation of land reforms has resulted in continuation of inequitous distribution of cultivable land which is detrimental to agricultural development.

Both food crops and cash crops are grown in Maharashtra. Principal crops include rice, jowar, bajra, wheat, pulses, turmeric, onions, cotton, sugarcane and several oil seeds including groundnut, sunflower and soybean. The state has huge areas, under fruit cultivation of which mangoes, bananas, grapes, and oranges are the main ones. 

Agriculture is the mainstay of the state of Maharashtra. Maharashtra's economy is predominantly agrarian. Agriculture and allied services play an important role in the economic development of the state.

There are a large number of marginal and small farmers in the country. More than 60 per cent of the ownership holdings have a size smaller than one (ha). Furthermore, about 40 per cent of the farmers have operational holding size smaller than 0.5 hectare (ha). The average size of land holding is shrinking further under increasing population pressure.

According to Economic Survey of Maharashtra 2017-18, following measures have been undertaken by the Maharashtra government for agricultural development:

• Setting up of APMC
• Establishment of Agro Export Zone
  
• Horticulture training centres
  
• Grading and packaging facilities for effective distribution
• Creating awareness about agricultural information through the use of mass media for making agriculture a profit making business

Following are general problems in the agricultural sector:

• Agricultural Indebtedness
• Dryland and inadequate irrigation facilities
• Lack of working capital

Following are the problems in the agricultural sector in Maharashtra:

• Lack of marketing facilities
• Impact of Climate change
  
• Adverse crop patterns
  
• Excessive use of chemical fertilizer
• Agricultural indebtedness

Following measures have been taken by Maharashtra government for agricultural development in the state:

• Distribution of quality seeds at reasonable rates
• Increased number of outlets for fertilizer and pesticide distribution
• Development of irrigation facilities
• Electrification of agricultural pumps and efforts to provide 'electricity on demand'.

Irrigation covers only about 33 percent of the cultivated area in India. The crop production in rest of the cultivated land directly depends on rainfall. Poor performance of south-west Monsoon also adversely affects the supply of canal water for irrigation.