Agriculture Sector in India: An Overview
The agriculture sector plays a crucial role in India’s economy, providing livelihoods to 65% to 70% of the population and employing 48.9% of the country’s workforce. It stands as the single largest private sector occupation. The government has initiated several missions to enhance agricultural sustainability and productivity, including the National Mission for Sustainable Agriculture (NMSA), launched during the 12th Five-Year Plan.
Key Focus Areas of NMSA
NMSA concentrates on:
- Dryland Agriculture: Enhancing productivity in arid regions.
- Risk Management: Developing strategies to mitigate agricultural risks.
- Access to Information: Promoting the use of data and technology in farming.
- Biotechnology: Encouraging the adoption of biotechnological advances for crop improvement.
NMSA is one of eight missions under the National Action Plan on Climate Change, which includes the following:
- National Solar Mission
- National Mission for Enhanced Energy Efficiency
- National Mission for Sustainable Habitat
- National Water Mission
- National Mission for Sustaining the Himalayan Eco-System
- National Mission for the Green India
- National Mission for Strategic Knowledge for Climate Change
Crop Production Estimates for 2016-17
On February 15, 2017, the Department of Agriculture, Cooperation and Farmers Welfare released the 2nd Advance Estimates of major crop production for the 2016-17 crop year:
- Total Foodgrains: 271.98 million tonnes (record high)
- Rice: 108.86 million tonnes (record)
- Wheat: 96.64 million tonnes (record)
- Coarse Cereals: 44.34 million tonnes (record)
- Pulses: 22.14 million tonnes
| Commodity | Production (Million Tonnes) |
|---|---|
| Rice | 108.86 |
| Wheat | 96.64 |
| Coarse Cereals | 44.34 |
| Pulses | 22.14 |
| Oilseeds | 33.60 |
| Sugarcane | 309.98 |
| Cotton | 32.51 million bales (170 kg each) |
Minimum Support Prices (MSPs) for Major Crops
The Cabinet Committee on Economic Affairs (CCEA) has approved Minimum Support Prices (MSPs) for Kharif and Rabi crops. Below is a comparison of MSPs for the 2015-16 and 2016-17 crop years:
| Commodity | 2015-16 (R/Quintal) | 2016-17 (R/Quintal) | Increase (R/Quintal) |
|---|---|---|---|
| Paddy (Common) | 1410 | 1470 | +60 |
| Wheat | 1525 | 1625 | +100 |
| Tur (Arhar) | 4625 | 5050 | +425 |
| Cotton (Medium Staple) | 3800 | 3860 | +60 |
Note: Figures in brackets indicate percentage increases and include bonuses where applicable.
Trends and Observations
- Agricultural GDP: The share of agriculture and allied sectors in the GDP has declined from 36.4% in 1982-83 to 17.4% in 2015-16. For 2016-17, the estimate is at 17.0%.
- Growth Rates: The growth target for agriculture during the 12th Plan was set at 4%, but actual growth rates for recent years have been below target, with 1.2% estimated for 2015-16 and 4.1% for 2016-17.
Significant Producers
India is a major player in global agriculture, being the second largest producer of various crops:
- Fruits and Vegetables: Second largest producer globally.
- Sugar: Second position after Brazil in sugarcane production.
- Pulses: World’s largest producer and consumer of pulses.
Conclusion and Recommendations
The Indian agriculture sector, while facing challenges such as declining GDP contribution and fluctuating growth rates, is supported by various government initiatives aimed at enhancing productivity and sustainability. Moving forward, it is essential to:
- Invest in Technology: Encourage the adoption of modern agricultural practices and technologies.
- Enhance Risk Management: Develop comprehensive risk management frameworks to help farmers cope with uncertainties.
- Promote Sustainable Practices: Focus on sustainable agricultural practices to ensure long-term productivity and environmental health.
By prioritizing these areas, India can bolster its agricultural sector, providing better livelihoods for its population and contributing to economic growth.
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