Agriculture sector needs ‘re-orientation’ due to likely hurdles in climate change, surge in costs of inputs

“In recent years, India has also rapidly emerged as the net exporter of agricultural products. In 2020-21, exports of agriculture and allied products from India grew by 18 per cent over the previous year. During 2021-22, agricultural exports reached an all-time high of $50.2 billion,” it said.

“This period of buoyant performance could be ascribed to the measures taken by the Government to promote farmer-producer organisations, encourage crop diversification, and improve productivity in agriculture through support provided for mechanisation and the creation of the Agriculture Infrastructure Fund,” it said. However, the Survey highlighted that Indian agriculture needs re-orientation in view of challenges like climate change and rising input costs.

“While Indian agriculture has performed well, the sector needs re-orientation in the backdrop of certain challenges like adverse impacts of climate change, fragmented landholdings, sub-optimal farm mechanisation, low productivity, disguised unemployment, rising input costs, etc.,” it said.

The Survey further said that the performance of the agriculture sector remains “critical” to growth and employment in the country.

“Investment in the sector must be encouraged through an affordable, timely and inclusive approach to credit delivery. Intervention by the Government through PM Kisan to provide income support, strengthening of institutional finance and insurance through the PMFBY and the push given to Kisan Credit Cards as also access to machines and tools that improve productivity have been significant,” the Survey said.

“A focus on the horticulture sector and the thrust towards allied activities have diversified farmers’ income making them more resilient to weather shocks. All these initiatives have led to sustainable and inclusive development of the sector,” it said.

The Survey also said that greater focus on the development of the food processing sector can reduce wastage/loss and increase the length of storage, ensuring better prices for the farmers. The initiatives like e-NAM and the Promotion of Farmers Producers’ Organizations formation have been introduced to strengthen the agricultural market, it said.

With the interventions including Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) and Production Linked Incentive Scheme, attempts have been made to boost the food processing industries to harness its linkages with the agriculture sector, it said.

“A well-developed food processing sector with improved infrastructure like cold storage and better logistics helps reduce wastage, improve value addition, ensure better farmers’ returns, promote employment, and increase export earnings,” it said.