Agriculture sector sprouts, needs reorientation

Indian agriculture has performed well, recording an average annual growth rate of 4.6% over the last six years, but the sector needs “re-orientation” in the backdrop of certain challenges including adverse impact of climate change, said the economic survey. The other challenges listed include rising input cost, fragmented landholdings, sub-optimal farm mechanisation, low productivity, disguised unemployment and rising input costs.

The survey noted that the agriculture sector has grown by 3% in 2021-22 compared to 3.3% in 2020-21. It said this growth was partly attributable to good monsoon years and partly to various government reforms.

It noted that India has also rapidly emerged as the net exporter of agricultural products. During 2021-22, agricultural exports reached an all-time high of $50.2 billion.

The survey attributes the sector’s growth and buoyancy to the “measures taken by the government to augment crop and livestock productivity, ensure certainty of returns to the farmers through price support (MSP), promote crop diversification” and, focused interventions to “enhance credit availability, facilitate mechanisation and boost horticulture and organic farming”.

It noted that other interventions such as PM-Kisan, strengthening of institutional finance and insurance through the PMFBY and the push given to Kisan Credit Cards (KCC) “have led to sustainable and inclusive development of the sector”.