Why in News:- As India moves forward on the path of Amrit Kaal, the journey of the agriculture sector will be difficult and full of challenges. It is not very difficult to understand why this is so. In this century, Indian agriculture is grappling with how to move beyond the old model.

Importance of the Agriculture Sector in the Economy

The agriculture sector in India is the cornerstone of the economy, providing employment to about half of the country’s workforce and contributing about 16-18% to the national GDP.
It is important not only for food security but also for economic stability and growth, especially in rural areas.

Importance of Agriculture Sector in India’s Amrit Kal

Market Size and Production

Food Grain Production

India’s food grain production is substantial, with total food grain production estimated at 148.5 million tonnes during the 2023-24 Kharif season.
Rice production alone is estimated at 106.31 million tonnes during this period.

Horticulture

India’s horticulture production reached a record 351.92 million tonnes in 2022-23, showing a growth of 1.37% over the previous year.
The sector includes production of fruits, vegetables, and other horticultural crops, contributing significantly to the agricultural economy.

Exports:

Exports of agricultural and processed food products stood at US$ 35.18 billion from April to December 2023, with rice (US$ 7.32 billion), marine products (US$ 5.85 billion), and spices (US$ 2.91 billion) being the major exports.
Investments and technological advancements The sector has witnessed significant investments and technological advancements aimed at improving productivity and sustainability. Some of the major initiatives include:

Foreign Direct Investment

Between April 2000 and December 2023, the agriculture services sector attracted FDI worth US$ 4.78 billion.
Additionally, the food processing industry received FDI inflows of about US$ 12.35 billion during the same period.

Technological Integration

Integration of advanced technologies such as UAVs, drones, precision farming solutions, and advanced irrigation systems has been a game-changer for Indian agriculture.
These techniques help to optimize resource use, increase crop yields, and promote sustainable farming practices.

Government Initiatives to Support Agriculture Sector in India

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

PM-KISAN is a direct income support scheme for farmers launched in 2019.
Under this scheme, eligible farmer families receive Rs 6,000 per year in three equal installments of Rs 2,000 each.
The scheme aims to provide financial stability to farmers and help them meet their agricultural and domestic needs.
As of 2023, over 11 crore farmers have benefited from the scheme, with funds transferred directly to their bank accounts. Pradhan Mantri Fasal Bima Yojana (PMFBY)
Launched in 2016, PMFBY is a crop insurance scheme designed to protect farmers against crop losses caused by natural calamities, pests and diseases.
The scheme covers all food and oilseed crops as well as annual commercial and horticultural crops.
The scheme has provided insurance coverage to over 5 crore farmers, giving them financial security and enabling them to recover from agricultural losses.

Soil Health Card Scheme

Launched in 2015, the Soil Health Card Scheme aims to promote soil health and productivity by providing farmers with information about the nutrient status of their soil.
The scheme involves periodic testing of soil samples and distribution of soil health cards with recommendations on appropriate fertilizer use.
By 2023, more than 22 crore soil health cards have been distributed to farmers across the country.

e-NAM (National Agriculture Market)

e-NAM is an online trading platform launched in 2016 to create a unified national market for agricultural commodities.
The platform aims to facilitate transparent and competitive trading of agricultural produce by linking APMC (Agricultural Produce Market Committee) mandis across the country.
By 2023, more than 1,000 mandis from 18 states and 3 union territories have been integrated into the e-NAM platform.

Kisan Credit Card (KCC) Scheme

Launched in 1998, the Kisan Credit Card Scheme aims to provide timely credit support to farmers for their farming and other needs.
The scheme provides short-term loans for crop production and allied activities at subsidized interest rates.
By 2023, more than 7 crore Kisan Credit Cards have been issued to farmers, giving them access to affordable credit.

Pradhan Mantri Krishi Sinchai Yojana (PMKSY)

Launched in 2015, PMKSY aims to increase water use efficiency and expand irrigation coverage in the country.
The scheme promotes the development of irrigation infrastructure, efficient water management practices, and micro-irrigation technologies.
PMKSY has benefited more than 20 lakh hectares of agricultural land through construction of new irrigation projects and adoption of water-efficient technologies.

Paramparagat Krishi Vikas Yojana (PKVY)

Launched in 2015, PKVY promotes organic farming practices and aims to improve soil health and agricultural sustainability.
The scheme supports the formation of organic farming clusters and the adoption of traditional agricultural practices.
By 2023, more than 2 lakh hectares of land has been brought under organic farming through the formation of over 10,000 organic farming clusters.

Key Challenges for the Agriculture Sector

Climate Change

Irregular weather patterns, including unseasonal rains, prolonged droughts and extreme temperatures, have already begun to impact crop yields and farmers’ livelihoods.
The increasing frequency of extreme weather events further compounds these challenges, making agricultural planning and productivity more unpredictable.

Fragmented Land Holdings

About 85% of India’s cultivable land is held by small and marginal farmers.
This fragmentation limits economies of scale, thereby reducing the efficiency and profitability of agricultural operations.
Small land holdings restrict the adoption of modern agricultural techniques and technologies, thereby hindering productivity improvements and income generation.

Water scarcity

Overexploitation of groundwater for irrigation has led to significant depletion of aquifers.
This unsustainable use of water resources poses a serious threat to the viability of agriculture in key regions.
Efficient water management practices are critical to address this challenge and ensure the long-term sustainability of agriculture.

Market inequities

Global policies that prioritize low food prices for consumers often result in artificially low farm-gate prices.
This practice makes farming economically unviable for many farmers, trapping them in a cycle of poverty.
Ensuring fair prices for agricultural produce is essential to make agriculture a sustainable and profitable enterprise. Input subsidies and environmental impacts
Input subsidies, such as those for fertilizers, lead to their indiscriminate use, which impacts soil health and the environment.
Excessive reliance on chemical fertilizers can degrade soil fertility and pollute water sources, posing long-term risks to agricultural productivity and environmental sustainability.

Governance and policy implementation

Governance of the agriculture sector at both the central and state levels often suffers from a lack of accountability and coordination.
Policies are often influenced by short-term populist measures rather than long-term strategic planning.
This lack of effective governance hinders the implementation of reforms and investments needed for sustainable agricultural development.

Public debt and fiscal constraints

High levels of public debt at both the central and state levels reduce fiscal flexibility.
This limitation constrains the ability to invest in long-term agricultural development and infrastructure.
Continued reliance on subsidies is not sustainable, necessitating innovative financial solutions and prudent fiscal management to support the agriculture sector.

Lack of technology

Despite advances in agricultural technologies, adoption rates among Indian farmers remain relatively low.
Factors such as high costs, lack of awareness and limited access to modern equipment and technologies hinder their widespread use.
Adoption of precision farming, advanced irrigation systems and sustainable practices is essential to increase productivity and efficiency.

Way Forward

Increasing investment in agricultural research

Agricultural research and development are critical to increase productivity and ensure long-term sustainability.
Current investments in agricultural research and development are below inflation levels, meaning that real funding is effectively depleted.
Increasing investment in this sector can have significant economic benefits, as every rupee invested in agricultural research yields 10 times more economic returns than other investments.
Adoption of technologies such as precision farming, artificial intelligence and drone-based monitoring can help optimise resource use and increase yields.
For example, precision farming techniques can enable farmers to apply the right amount of inputs at the right time, thereby increasing productivity and reducing costs.

Improving market infrastructure and fair pricing

Expanding and improving the National Agriculture Market (e-NAM) platform can enhance market access and transparency.
Integrating more mandis in rural areas and ensuring better internet connectivity can help farmers get fair prices for their produce by reducing the role of middlemen.
Ensuring that the MSP mechanism covers a wide range of crops and is implemented effectively can provide assured returns to farmers.
Regularly revising the MSP to reflect changing input costs and market conditions can help maintain the profitability of farming.

Sustainable water management

Promoting the use of efficient irrigation methods such as drip and sprinkler systems can significantly reduce water use while maintaining or increasing crop yields.
The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) should continue to focus on expanding irrigation coverage and adopting water-efficient technologies.
Rainwater harvesting and groundwater recharge • Encouraging recharge techniques can help mitigate the problem of depleting aquifers.
Community-based water management practices should be promoted to ensure sustainable use of water at the local level.

Enhancing farmers’ income and livelihoods

Encouraging farmers to diversify their income sources by integrating allied activities such as animal husbandry, fisheries and agroforestry can increase income stability and reduce dependence on crop income alone.
Developing infrastructure for food processing and value addition can significantly increase farmers’ income.
Initiatives such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) should focus on creating more agro-processing clusters and food parks.

Policy and governance reforms

Enhancing governance structures and accountability mechanisms within agriculture ministries can lead to better policy implementation and resource allocation.
Regular monitoring and evaluation of agriculture schemes can ensure that they achieve their intended results.
Since agriculture is a state subject, it is important to promote better coordination between the central and state governments.
Collaborative efforts can ensure that national objectives are aligned with local needs and resources are effectively utilised for agricultural development.

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