According to NITI Aayog, The agriculture and allied sectors may register more than 6% growth in 2024-25.
About
The year 2024-25 will be highly favorable for agriculture, mainly due to two factors.
One, the monsoon rainfall will be normal or above normal, as per reports by various agencies. Even in terms of regional distribution, the forecasts are encouraging.
Two, the agriculture growth in 2023-24 was 0.67%, which means the base for 2024-25 is low. Agriculture Sector in India.
India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for ~55% of India’s population.
It is the second-largest producer of fruit, vegetables, tea, farmed fish, sugarcane, wheat, rice, cotton, and sugar.
India occupies fifth place globally with a total area of 2.66 million hectares in organic farming.
Recent Trends
The share of agriculture in total Gross Value Added (GVA) of the economy has declined from 35% in 1990- 91 to 15% in 2022-23, mainly due to rapid expansion in the industrial and service sector GVA.
In growth terms, the agriculture and allied sector has registered an average annual growth of 4% during the last five years.
Fall in the Agricultural Prices: The stagnation or fall of agricultural prices in the market was not ameliorated by equivalent rise in minimum support prices (MSP).
For major foodgrain crops, the MSPs rose by an average 5% per annum between 2013-14 and 2023-24.
Real Income of Farmers: The real incomes of agricultural households from cultivation fell by about 1.4% between 2012-13 and 2018-19.
The fall of incomes from cultivation was not only owing to the stagnation or fall of agricultural prices, but also due to a sharp rise in the costs of inputs in agriculture, particularly fertilizers.
Public Investment: The public investment in agriculture, in general as well as in specific fields like agricultural research and extension, were stubbornly stagnant, and occasionally even fell, over the past decade.
Consequently, capital investment in agricultural and allied sectors did not rise.
Rising prices: The real prices of agriculture have been rising for several years. The wholesale price index (WPI) of agri-commodities is rising faster than non-agri-commodities.
Major Challenges Faced by the Agricultural Sector
Water scarcity & irrigation: India’s agriculture is heavily dependent on monsoon rain, making it vulnerable to droughts and inconsistent rainfall patterns.
Access to irrigation facilities and water management are crucial challenges, particularly in regions with limited water resources.
Lack of access to credit & finance: Small and marginal farmers often face difficulties in accessing credit and financial services.
Limited availability of affordable credit restricts their ability to invest in modern farming equipment and quality seeds and fertilizers, hampering their productivity.
Small landholdings: Average farmers are small landholders, leading to fragmented and uneconomical farming practices.
This makes it challenging for them to adopt modern agricultural methods and technologies, resulting in lower productivity.
Outdated farming practices: A significant portion of Indian farmers still rely on traditional and outdated farming methods.
Limited access to information, lack of awareness about modern techniques and resistance to change hinder the adoption of advanced farming practices.
Market volatility & price fluctuations: Farmers in India often face price volatility due to lack of effective market linkages, intermediaries and price information.
Developmental programmes implemented by government
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): It is an income support scheme providing Rs. 6000 per year in 3 equal installments.
Pradhan Mantri Krishi Sinchai Yojana (PMKSY): This scheme focuses on improving water use efficiency in agriculture.
It includes components such as micro-irrigation, watershed development, and the promotion of efficient water management practices.
Pradhan Mantri Fasal BimaYojana (PMFBY): It was launched in 2016 addressing problems of high premium rates for farmers and reduction in sum insured due to capping.
Per Drop More Crop: The scheme aims to increase water use efficiency, reducing cost of inputs and increasing productivity at the farm level through Micro Irrigation technologies.
PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan): This scheme aims to ensure that farmers get remunerative prices for their produce.
It comprises Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Pilot of Private Procurement & Stockist Scheme (PPPS).
Namo Drone Didi: The scheme aims to provide drones to 15000 selected Women SHGs for providing rental services to farmers for agriculture purposes (application of fertilizers and pesticides).
Kisan Credit Card (KCC) Scheme: The KCC scheme provides farmers with credit at subsidized interest rates, facilitating timely access to credit for agricultural and allied activities.
National Agriculture Market (e-NAM): The e-NAM is an online platform that aims to create a unified national market for agricultural commodities.
It enables farmers to sell their produce to buyers anywhere in the country, promoting transparency and fair pricing.
Way Ahead
Substantial increase in farmers income and transformation of agriculture require a paradigm shift in the entire approach towards the agriculture sector.
Advancement in science led technology, enhanced role of private sector in both pre and post harvest phases, liberalized output market, active land lease market, and emphasis on efficiency will equip agriculture to address challenges.
A well co-ordinated action and strategy between the Centre and the states is needed to ensure that agriculture marches to the next stage of development along with other sectors.
