NITI Aayog Report: Transforming India's Agriculture : Daily
News Analysis
Relevance General Studies Paper 3: Cropping pattern in different parts of
the country, storage, transportation and marketing of agricultural produce,
related issues and constraints.
Context:
The recent study by NITI Aayog regarding India’s agricultural sector growth
offers a multifaceted view of the changes occurring in agriculture. While it
emphasizes notable growth in specific sub-sectors, it also raises critical
questions about the sustainability and inclusivity of this growth. This
evaluation delves into both the achievements and challenges highlighted in
the study, examining their implications for the future of Indian agriculture.
Achievements in Agricultural Growth
Overall Growth Trends
The study indicates a significant improvement in the Gross Value Added (GVA)
for agriculture, which rose from an average of 2.9% prior to 2004 to 3.7%
during the NDA period. This growth challenges the prevailing notion of a
sector in crisis and is particularly noteworthy in a country where agriculture
serves as a primary livelihood for a substantial portion of the population.
Sub-sector Performance
Remarkable growth rates in livestock (5.8%), fisheries (9.2%), and
horticulture (3.9%) reflect a diversification of the agricultural economy. Driven
by changing consumer demands and supported by proactive government
initiatives, these sectors have not only enhanced farmers' incomes but also
generated employment opportunities and contributed to national economic
growth.
Increased Production
The reported surge in cereal production from 185.2 million tonnes in 2004-05
to 303.6 million tonnes in 2022-23 suggests improvements in productivity,
potentially due to advancements in agricultural technology, irrigation
practices, and input usage. This increase aligns with broader national goals of
achieving self-sufficiency in food production, particularly important for a
growing population.
Challenges in Agricultural Growth
Stagnant Consumption vs. Production
A critical concern raised by the study is the apparent discrepancy between
reported production figures and household consumption of cereals. While
production has significantly increased, stagnant consumption levels indicate
that a large portion of the output may not be translating into actual food
availability for consumers. This raises questions about the accuracy of data
collection methods and the effectiveness of existing agricultural policies in
addressing real food security challenges.
Disparities among Sub-sectors
The slower growth rate of traditional crop agriculture (2.3%) compared to
livestock and fisheries suggests a potential neglect of this vital segment.
Regions known for their agricultural output, such as Punjab and Haryana,
report growth rates between 2% and 3.4%. This stagnation poses risks to the
livelihoods of farmers reliant on traditional crops, who may not benefit from
the broader advancements observed in other sub-sectors.
Unequal Distribution of Benefits
The survey cited in the study reveals that only 53% of farmers earn income
from livestock, and just 6.5% engage in horticulture. This indicates that the
benefits of agricultural growth are not universally accessible, with many
farmers still dependent on traditional crops, which have not received the same
levels of technological support or market access, exacerbating inequalities
within the agricultural community.
Market Dynamics and Vulnerabilities
While the shift towards higher-value crops and livestock is a positive
development, it also makes farmers vulnerable to market fluctuations.
Reliance on a few high-demand products can increase risks, particularly in the
face of changing consumer preferences and global market dynamics. Without
adequate risk management strategies, farmers may find themselves exposed
to sudden price drops or shifts in demand.
Government Schemes Propelling Growth in the Agriculture Sector
Several government schemes have been instrumental in propelling growth in
agriculture:
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Launched: 2016
Objective: Provides affordable crop insurance covering pre-sowing to post-
harvest risks.
Impact: Protects farmers against losses from natural disasters, stabilizing
income and encouraging investment in agricultural activities.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
Introduced: February 24, 2019
Objective: Provides ₹6,000 per year to landholding farmers.
Impact: Helps farmers manage expenses, improving productivity and reducing
reliance on informal credit.
Modified Interest Subvention Scheme (MISS)
Objective: Offers concessional short-term agricultural loans at an interest rate
of 7% per annum.
Impact: Reduces borrowing costs, encouraging investments in inputs,
technology, and sustainable practices.
Agriculture Infrastructure Fund (AIF)
Launched: 2020
Objective: Provides medium to long-term debt financing for agricultural
infrastructure projects.
Impact: Supports investments in post-harvest infrastructure, reducing
wastage and increasing value.
National Programme for Dairy Development
Objective: Aims to increase milk production and productivity.
Impact: Enhances the livelihoods of dairy farmers through better breeding
practices and improved processing facilities.
National Beekeeping & Honey Mission (NBHM)
Launched: 2020
Objective: Promotes scientific beekeeping and aims to increase honey
production.
Impact: Supports crop pollination and enhances the income of farmers
engaged in beekeeping.
Micro Irrigation Fund (MIF)
Initial Corpus: ₹5,000 crore
Objective: Facilitates micro-irrigation in horticulture and other crops.
Impact: Promotes efficient water use, leading to higher yields and better-
quality produce.
Paramparagat Krishi Vikas Yojana (PKVY)
Objective: Promotes organic farming practices and increases soil fertility.
Impact: Encourages sustainable practices that enhance soil health and
reduce chemical usage.
Pradhan Mantri Matsya Sampada Yojana (PMMSY)
Launched: 2020
Objective: Enhances fisheries production and productivity.
Impact: Supports aquaculture practices and market access for fish farmers.
Policy Implications and Recommendations:
The findings of the NITI Aayog study suggest several important policy
implications. First, there is a clear need for targeted interventions that support
crop diversification, particularly for farmers engaged in traditional agriculture.
Policies should prioritize access to technology, training, and market linkages to
enable these farmers to transition to higher-value production systems.
Second, addressing disparities in income generation across different
agricultural activities is crucial. This involves enhancing support systems for
farmers reliant on traditional crops, including investment in research and
development for crop varieties and improved irrigation facilities.
Moreover, improving data collection and transparency in agricultural statistics
is essential. Accurate data on production, consumption, and market dynamics
can inform policymakers and help them craft more effective interventions.
Enhanced monitoring and evaluation frameworks can also aid in
understanding the true impact of agricultural policies on various farmer
groups.
Conclusion:
NITI Aayog study provides compelling evidence of growth in India’s
agricultural sector under the NDA government, it also highlights significant
challenges that need to be addressed. The shift towards livestock,
horticulture, and fisheries reflects a dynamic agricultural landscape but raises
concerns about the inclusivity of this growth. Policymakers must focus on
ensuring that all farmers can benefit from advancements in agriculture,
particularly those still reliant on traditional crops. By doing so, India can work
towards a more equitable and sustainable agricultural future that supports the
livelihoods of its diverse farming community.
Probable questions for UPSC Mains exam:
Critically evaluate the NITI Aayog's findings on India's agricultural growth,
considering both the achievements and challenges highlighted in the study.
Source-Indian Express, Pib
