With the right reforms, investment, and policies, it is possible to switch from a food agriculture base to commercialized agriculture thereby increasing the incomes of farmers and taking this as a launching pad of growth for the economy. India needs making such new and better food systems that could set agriculture in India on a high growth stage and still provide healthy nutritious food to its more than two billion population. For starters, the primary ingredients of an agrarian order can be realized but are only attainable when there is concerted capacity towards climate-smart agriculture, access to markets, access to credit systems, access to technologies, and access to the communities.
Tags: GS – 3, Economy-Agriculture Sector- Direct & Indirect Farm Subsidies– Buffer Stocks & Food Security- Agricultural Marketing
Context:
- Agriculture currently employs 46% of the workforce and contributes 18% to GDP.To transform agriculture into a key driver of economic growth, it is crucial to address ecological, technological, and institutional barriers.
- This involves replenishing water resources, increasing irrigation coverage, diversifying crops, and adopting advanced techniques like micro-irrigation and climate-resilient farming.
- Indian agriculture can become more technologically advanced, sustainable, and economically viable, attracting educated youth and contributing to national growth.
Current Status of the Indian Agriculture Sector:
- Economic Contribution: Agriculture and allied sectors contributed 18.8% to India’s Gross Value Added (GVA) in 2021-22. The sector demonstrated resilience during the pandemic, growing by 3.9% in 2021-22, compared to 3.6% in 2020-21.
- Employment: Agriculture employs around 42% of India’s workforce, but its share has been steadily declining from 81% in 1983.
- Production: India’s foodgrains production reached a record 315.7 million tonnes in 2021-22 despite climate change challenges. (Economic Survey 2022-23)
- Exports: Agricultural exports saw a 19.92% growth in 2021-22, totaling USD 50.21 billion. Key exports include rice, wheat, cotton, and spices.
- Organic Farming: The total area under organic certification (registered under the National Programme for Organic Production) is 7.3 million hectares as of 2023-24.
Recent Technological Developments in Indian Agriculture:
- Drone Technology: In 2021, the government approved subsidies of up to 100% for the purchase of agriculture drones by farm machinery training institutes. The Namo Drone Didi scheme aims to provide drones to 15,000 selected women Self-Help Groups (SHGs) between 2023-24 and 2025-26.
- Satellite Imaging and Remote Sensing: ISRO’s RISAT-1A satellite, launched in 2022, supports agricultural assessment and improvement through advanced satellite imaging and remote sensing.
- Happy Seeder Technology: This technology, designed to address stubble burning, allows wheat sowing without removing paddy straw, thus reducing air pollution and enhancing soil health.
- PUSA Decomposer: Developed by the Indian Agricultural Research Institute (IARI), this microbial solution decomposes crop residues quickly when sprayed on stubble.
- Nano Urea: Introduced by IFFCO in 2021, Nano Urea is a liquid fertiliser containing nanoscale nitrogen particles that improve nutrient use efficiency while reducing environmental pollution.
Indian Agriculture Underperforming Despite Employing the Majority:
- Fragmented Land Holdings: India’s agricultural land is highly fragmented, with 86.1% of farmers owning less than 2 hectares. This fragmentation limits mechanisation, credit access, and the adoption of modern techniques, reducing productivity.
- Changing Climate: India relies heavily on monsoons, with only 52% of cultivated land irrigated. Climate change further reduces agricultural incomes by 15-18%, exemplified by the recent heat waves that damaged crops.
- Market Inefficiencies: The APMC system often exploits farmers, with them receiving only 15-20% of retail prices. Although e-NAM aims to unify markets, it still faces adoption challenges.
- Credit Crunch: Limited formal credit access forces farmers to rely on high-interest informal loans, leading to debt traps. Over 50% of agricultural households are in debt, increasing poverty and suicides.
- Policy Paralysis: Subsidies distort market dynamics, while the MSP system leads to overproduction of certain crops, affecting sustainability and incomes.
- Post-Harvest Losses: India suffers from inadequate storage and transportation, losing ₹92,651 crore annually in post-harvest losses. Cold storage can only hold 11% of the total produce.
- Gender Disparity: Women make up 42% of the agricultural workforce but own only 14% of land. This limits their access to credit and resources, although initiatives like Mahila Kisan Sashaktikaran Pariyojana aim to address this imbalance.
Productivity Challenges:
Recent Government Initiatives in Indian Agriculture :
- Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Provides ₹6,000 annually to small and marginal farmers. As of March 2023, over ₹2.5 lakh crore has been disbursed to more than 12 crore farmers.
- Pradhan Mantri Fasal Bima Yojana (PMFBY): Covers over 5 crore farmers and provides insurance against crop losses due to natural calamities. The scheme has seen a premium collection of approximately ₹22,000 crore with claims exceeding ₹25,000 crore.
- Soil Health Card Scheme: Issued around 31 crore soil health cards since its launch in 2015, offering farmers specific advice on soil health and nutrient management.
- Pradhan Mantri Krishi Sinchai Yojana (PMKSY): Aims to improve irrigation infrastructure with a target of achieving ‘Har Khet Ko Pani’ (water to every field). As of 2022-23, over 68 lakh hectares of land have been covered under irrigation schemes.
- e-National Agriculture Market (e-NAM): Launched in 2016, it connects over 1,000 mandis across 18 states. By February 2024, approximately 1.77 crore farmers and 1.29 lakh traders were registered on the platform.
- National Mission on Sustainable Agriculture: Promotes sustainable practices and aims to improve soil health, enhance water use efficiency, and increase crop productivity. The mission supports various initiatives including organic farming and climate-resilient crops.
- Paramparagat Krishi Vikas Yojana (PKVY): Supports organic farming through subsidies for organic inputs and certification. The scheme covers over 2 lakh hectares of land as of 2022.
- Digital Agriculture Mission: Aims to promote digital solutions in agriculture, including precision farming and data-driven decision-making. The mission focuses on integrating technologies like drones, AI, and IoT into farming practices.
Measures to Enhance Agricultural Productivity:
- Precision Agriculture: Utilise GPS, IoT sensors, and data analytics to optimise resource use. Pilot projects, like those in Maharashtra, have shown increased yields and reduced water use. Nationwide adoption could save billions of litres of water and boost productivity.
- Crop Diversification: Encourage farmers to grow a variety of crops to boost income and soil health. Initiatives like the push for millets and successful programs in Odisha highlight the benefits of diversification in improving farmer incomes and nutritional security.
- Farmer Producer Organizations (FPOs): Strengthen FPOs to achieve economies of scale. Models like Sahyadri Farmers Producer Company, which increased incomes by 25-30%, can be replicated across India to enhance productivity and farmer earnings.
- Climate-Smart Agriculture: Adopt practices like drought-resistant crops and water conservation. New varieties like Swarna-Sub1 and the release of 109 crop varieties by the Prime Minister demonstrate progress in improving yield and resilience.
- Agri-Tech Startups: Support agri-tech startups that drive innovation, such as DeHaat. Creating an ecosystem with incubation centres and funding can accelerate technology adoption in agriculture.
Conclusion
Transforming Indian agriculture requires precision farming, crop diversification, and post-harvest infrastructure improvements. Strengthening FPOs and leveraging agri-tech advancements will enhance productivity and sustainability, driving economic growth in the sector.
UPSC Civil Services Examination, Previous Year Question (PYQ)
Prelims:
Q:1 In the context of India’s preparation for Climate -Smart Agriculture, consider the following statements: (2021)
- The ‘Climate-Smart Village’ approach in India is a part of a project led by the Climate Change, Agriculture and Food Security (CCAFS), an international research programme.
- The project of CCAFS is carried out under Consultative Group on International Agricultural Research (CGIAR) headquartered in France.
- The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in India is one of the CGIAR’s research centres.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Ans: (d)
Q:2 Consider the following pairs: (2014)
Programme/Project Ministry
- Drought-Prone Area Programme Ministry of Agriculture
- Desert Development Programme Ministry of Environment and Forests
- NWDP for Rainfed Areas Ministry of Rural Development
Which of the above pairs is/are correctly matched?
- 1 and 2 only
- 3 only
- 1, 2 and 3
- None
Ans: (d)
Q:3 In India, which of the following can be considered as public investment in agriculture? (2020)
- Fixing Minimum Support Price for agricultural produce of all crops
- Computerization of Primary Agricultural Credit Societies
- Social Capital development
- Free electricity supply to farmers
- Waiver of agricultural loans by the banking system
- Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
- 1, 2 and 5 only
- 1, 3, 4 and 5 only
- 2, 3 and 6 only
- 1, 2, 3, 4, 5 and 6
Ans: (c)
Mains:
Q;1 Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)
Q:2 Explain various types of revolutions, took place in Agriculture after Independence in India. How have these revolutions helped in poverty alleviation and food security in India? (2017)
Source: IE
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