Q. India is an agricultural powerhouse, but several deep structural challenges limit its potential. Discuss. (Answer in 150 words).

06 Oct, 2022 GS III Daily Answer Writing 2022-23 ( Upgrade)
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With largest arable land in the world & 20 Agroclimatic regions, India is a true ‘agricultural powerhouse’ boasting of largest global production of pulses, jute, tea, cashew, milk etc & 2nd largest production of fruit, vegetables, wheat etc. 

Despite such an enviable production & resource base, Indian agriculture continues to face several deep seated challenges that severely undermines its potential.

Challenges in the growth of agriculture in India 

  • Policy gaps: Faulty policies relating to APMC, MSP, Farm Subsidies, Insurance, Export Policy etc.
  • Dual Distress: High input costs and low farm revenues.
  • Low Productivity: Lower yields than many of the emerging economies like Egypt, Brazil, Bangladesh, Thailand etc.
  • Distorted Forward Linkages: high post harvest losses (20-30%) & Low contribution of food processing (only 10-12%).
  • Handkerchief sized unviable farms: Small and marginal farmers(<2 hectares of land) account for 85%.
  • Lack of Infrastructure: cold storage, mechanisation, and irrigation (only 55% of area under cultivation).
  • Innovation/R&D Deficit: Spending on agricultural R&D in India still hovers at a low of 0.40% of agricultural GDP/.
  • Technology gaps: Poor access to agri technology, digital divide & illiteracy, limited funding for early-stage agri-tech firms, etc.
  • Uncompetitive Exports: Indian food exports rejected as due to failure to meet international quality standards.
  • Unsustainable agri practices: focus on commercial crops like wheat, rice and sugarcane generate water crisis (Virtual water export) and GHG emissions.
  • Climate change: Unpredictable weather leading to soil degradation, pests attack (eg. recent locust attacks) etc.

Structural issues in all the stages must be addressed:

  • Inputs Stage:
    • Comprehensive land reforms: Titling, digitisation of land records, land pooling, land leasing etc.
    • Rationalising policies relating to seed, fertilizer, pesticides, marketing, private participation etc.
    • .
    • Access to institutional Credit: with special attention to the north-eastern, eastern and rainfed state/regions.
  • Production Stage:
    • Prioritize Sub sectors for investment: Diversification into high growth and high-value sub sectors such as horticulture, animal husbandry, dairying and fisheries
    • Increased farm mechanisation, engaging with the FPO’s to impart skills to the farmers.
    • Use of modern technologies Artificial Intelligence (AI), Robotics, Drones, Data Analytics, GIS etc.
    • Improve sustainability of agriculture through efficient use of fertilisers and soil management.
  • Post-Harvest Stage:
    • Provision of infrastructure – cold storage and food processing unit nearby, improved transport facilities
    • Strict and dynamic standardisation, catering to the domestic as well as foreign demands (HACCP, CODEX).
    • Incentivising exports and processing – like SAMPADA and TOP schemes.

 

Thus, a structural transformation is required across the value chain of agriculture to truly justify India’s standing as the ‘Food Basket of the world’.


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