Growth Potential and Challenges in Indian Agriculture

GS-3 Mains (Agriculture)

Short Notes or Revision Notes 

Question : Examine the major challenges faced by Indian agriculture and  Discuss the impact of these challenges on farmers’ livelihoods and agricultural productivity.

Growth Expected in 2024-25:

• NITI Aayog predicts over 6% growth due to:
  • Normal/above normal monsoon rainfall.
  • Low growth base from 2023-24 (0.67%).

Importance of Agriculture:

• Employs ~55% of India’s population.
• 2nd largest producer of many fruits, vegetables, and crops.
• 5th place globally in organic farming area.

Recent Trends:

• Agriculture’s share of GVA declining (35% in 1990-91 to 15% in 2022-23).
• Average annual growth of 4% in the last five years.
• Stagnant/falling agricultural prices despite rising MSP (5% average increase since 2013-14).
• Decline in real income of agricultural households (-1.4% between 2012-13 and 2018-19).
• Stagnant public investment in agriculture.
• Rising real prices of agricultural commodities (WPI increasing faster than non-agri).

Major Challenges:

• Water scarcity and irrigation issues.
• Limited access to credit and finance for small farmers.
• Fragmented landholdings due to small farm sizes.
• Outdated farming practices and lack of technology adoption.
• Market volatility and price fluctuations for farmers.

Government Initiatives:

• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Income support scheme (Rs. 6000/year).
• Pradhan Mantri Krishi Sinchai Yojana (PMKSY): Improves water use efficiency (micro-irrigation, watershed development).
• Pradhan Mantri Fasal BimaYojana (PMFBY): Crop insurance scheme addressing premium rates and sum insured.
• Per Drop More Crop: Promotes water efficiency through micro-irrigation technologies.
• PM-AASHA (Price Support Scheme, Price Deficiency Payment Scheme, Pilot of Private Procurement & Stockist Scheme).
• Namo Drone Didi: Provides drones to women SHGs for agricultural services (fertilizers & pesticides).
• Kisan Credit Card (KCC) Scheme: Subsidized credit for farmers.
• National Agriculture Market (e-NAM): Online platform for a unified agricultural commodity market.

Way Forward:

• Paradigm shift needed to increase farmer income and transform agriculture.
• Advancements in science and technology.
• Increased private sector role (pre & post-harvest).
• Liberalized output market and active land lease market.
• Emphasis on efficiency to address challenges.
• Well-coordinated central and state government actions for agricultural development.