Farm Sector Growth
1. ICRA predicts minimal growth in India’s farm sector GVA for the second half of
2023-24.
2. Factors include weak kharif crop estimates, mixed trends in rabi sowing, and
concerns about crop yields.
Importance of Farm Sector:
1. India is the second-largest global producer of farm produce.
2. Contributes significantly to the national economy and rural livelihoods.
Recent Trends:
1. Modest growth in the agricultural sector, averaging around 3% in recent years.
2. Economic Survey 2022-23 notes 3% growth in 2021-22, lower than the 4.6%
average in the last six years.
3. Private investment in agriculture increased to 9.3% in 2020-21, while public
investment remained at 4.3%.
Challenges:
1. Low Productivity:
Fragmented landholdings, limited irrigation, and inadequate
technology adoption contribute to low yields.
2. Market Volatility:
Price fluctuations and limited market access lead to unstable farm
incomes, discouraging investment.
3. Climate Change:
Extreme weather events, rising temperatures, and water scarcity
threaten agricultural productivity and farmer livelihoods.
4. Post-Harvest Losses:
Inadequate storage, transportation, and processing infrastructure result
in significant losses.
5. Rural-Urban Migration:
Migration creates a shortage of skilled agricultural labor, hindering
productivity growth.
Measures to Address Challenges:
1. Investments in Research and Development:
Focus on high-yielding, climate-resilient crop varieties, precision
agriculture, and improved irrigation.
2. Improving Market Access:
Develop e-commerce platforms, farmer producer organizations (FPOs),
and direct marketing channels.
3. Investments in Rural Infrastructure:
Build better roads, storage facilities, and cold chains to reduce post-
harvest losses.
4. Climate-Smart Agriculture:
Promote practices like conservation agriculture, water management,
and drought-resistant varieties.
5. Skill Development:
Train farmers in modern agricultural technologies, market awareness,
and financial management.
6. Financial Inclusion:
Ensure easy access to credit and insurance schemes for farmers to
invest in farms and mitigate risks.
7. Land Reforms:
Address issues like land fragmentation and tenancy regulations to
improve land use efficiency.
8. Promoting Diversification:
Encourage farmers to adopt allied activities like horticulture, animal
husbandry, and aquaculture.
Government Initiatives:
1. Agricultural Technology Management Agency (ATMA) Scheme:
Grants-in-aid for implementing the latest agricultural technologies and
good practices.
2. Krishi UDAN:
Assistance and incentives for the air transport of agricultural produce.
3. Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan):
Provides income support of 6,000/- per year to landholding farmer
families.
4. Pradhan Mantri Krishi Sinchai Yojana (PMKSY):
Aims at developing irrigation sources for a permanent drought
solution.
5. FDI in Agriculture:
100% FDI allowed in food product marketing and E-commerce.
6. Kisan Credit Card:
Provides access to institutional credit for farmers.
7. e-NAM Initiative:
Opens markets nationwide, enabling farmers to get better prices for
their produce.
8. Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA):
Ensures Minimum Support Price (MSP) for various crops with a robust
procurement mechanism.
9. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY):
Aims to increase the level of the food-processing industry and rural
entrepreneurship.
10. PM Formalization of Micro Food Processing Enterprises (PMFME)
Scheme:
Provides support for setting up/upgrading micro food processing
enterprises.
Way Ahead:
1. Transformative Measures:
Address challenges and leverage opportunities for sustainable and
inclusive farm sector growth.
2. Investment Focus:
Prioritize technology, infrastructure, market access, and farmer
empowerment.
3. Achieving Objectives:
Ensure food security and rural prosperity through strategic investments
in the agricultural sector.
