The pre-Budget Economic Survey rightly notes that India’s agricultural sector, despite encountering various challenges, remains a crucial pillar for economic growth and ensuring food security for the nation. This sector has consistently demonstrated remarkable resilience, evidenced by stable growth rates supported by a range of Government initiatives to enhance productivity, diversify crop portfolios, and provide essential social security support for farmers.
The increasing significance of allied sectors, such as animal husbandry, dairying, and fisheries, underscores the importance of diversification in activities and sources of income for boosting their income levels and building resilience. By tapping into these complementary sectors, farmers can create additional streams of revenue that can buffer them against the inherent volatility of traditional crop production.
However, the sector is not without its challenges. Issues like climate change and water scarcity present significant obstacles that require focused and targeted interventions. Promoting agricultural production patterns and practices that align with the specific agro-climatic conditions and natural resource availability of different regions across the country is vital.
Investment in research and development, especially on climate-resistant varieties, improved agriculture practices, diversification to high yield and climate-resilient crops, and micro-irrigation, can yield sustainable long-term benefits. The widespread adoption of digital technologies in agriculture will unlock further possibilities for enhancing productivity.
The Survey notes that improving price discovery and market efficiency is another critical aspect that necessitates attention. Strengthening market infrastructure is essential to facilitate this improvement. This can be achieved by effectively utilising e-NAM, a platform for farmers to access broader markets. Furthermore, supporting the establishment and operational capabilities of FPOs and enabling cooperatives to play a more active and influential role in agricultural markets is paramount to fostering an inclusive market environment.
