Economic Survey 2024-25: How India Can Bridge The Agricultural Yield Gap

The Economic Survey 2024-25 highlights the diverse nature of Indian agriculture, with significant variations in crop productivity across states and sectors. While high-value sectors like horticulture, livestock, and fisheries are driving growth, challenges such as low crop yields, soil degradation, and dependence on imports necessitate strategic government interventions, private sector investment, and technological advancements to ensure sustainable agricultural development.

Major Trends In Indian Agriculture

Agricultural Diversity In India

Variation Across Regions: Agriculture in India is highly diverse, with performance differing across states and sectors.
Global Cereal Production: India contributes 11.6% to the world’s total cereal output, yet crop yields remain lower than other major producers, highlighting the need for productivity improvements.

Growth Trends in Agriculture

Crop Sector Growth: From FY13 to FY22, the crop sector grew at a compound annual growth rate (CAGR) of 2.1%, primarily driven by increased production of fruits, vegetables, and pulses.
Oilseed Growth Concern: Oilseeds have grown at a slower rate of 1.9% CAGR, raising concerns due to India’s reliance on imports for edible oil.

High-Value Sectors Driving Growth

Key Contributors: Sectors such as horticulture, livestock, and fisheries have significantly contributed to overall agricultural growth.
Fastest Growing Sector: Fisheries recorded the highest CAGR of 13.67%, followed by livestock at 12.99% between FY15 and FY23.

Inter-State Growth Differences

Leading States: From 2011-12 to 2020-21, Andhra Pradesh led with 8.8% CAGR in agriculture and allied sectors, excluding forestry and logging. Madhya Pradesh followed at 6.3%, while Tamil Nadu recorded 4.8%.
Crop Diversification: These states have shifted focus to high-yield crops—Andhra Pradesh towards jowar, Madhya Pradesh towards moong, and Tamil Nadu towards maize.
Potential for Improvement: Despite diversification, there is room for enhancing productivity and reducing the yield gap compared to global averages.

Changing Dietary Preferences and Future Growth

Impact of Rising Incomes: Increasing income levels are shifting dietary habits, leading to higher consumption of non-food grains such as horticultural products, livestock, and fisheries.
Post-Harvest Management: Since these products are perishable, efficient post-harvest management and strong marketing infrastructure are necessary.
Support from Organizations: Farmer Producer Organizations (FPOs), cooperatives, and Self Help Groups (SHGs) play a vital role in this transformation.
Private Sector Involvement: Investments from private entities are crucial to support small farmers and enhance the agricultural value chain.

Government Initiatives for Agricultural Development

Policy Framework: The government is implementing various initiatives to improve agricultural productivity and boost farmers’ incomes, as recommended in the 2016 Doubling Farmers’ Income (DFI) Report.
Key Focus Areas: Efforts focus on enhancing crop and livestock productivity, increasing cropping intensity, and promoting high-value crop diversification.
Sustainability Measures: Programs like Per Drop More Crop (PDMC) and the National Mission on Sustainable Agriculture (NMSA) aim to improve input efficiency and promote sustainable farming through organic and alternative fertilizers.
Digital Agriculture: Initiatives such as the Digital Agriculture Mission and e-NAM help farmers adopt modern technologies and improve price discovery.
Income Support: Farmers receive financial assistance through assured remunerative prices and schemes like Pradhan Mantri Kisan Samman Nidhi (PM-KISAN).

Seed Quality and Fertilizer Use: Key Factors in Agriculture

Importance of Seeds: High-quality seeds are crucial for healthy crop growth. In 2023-24, ICAR produced 1.06 lakh quintals of breeder seeds across 81 crops.
Climate-Resistant Seeds: Since 2014, 2,177 out of 2,593 new seed varieties have been developed to withstand climate challenges.
Seed Banks: These facilities ensure the availability of high-yield and climate-resistant seeds, benefiting farmers across different regions.

Soil Health and Fertilizer Efficiency

Soil Degradation Issues: Declining organic carbon levels and nutrient deficiencies, including boron, iron, and sulfur, negatively impact soil fertility and productivity.
Sustainable Fertilizer Use: Efficient fertilizer management is crucial for balancing high crop yields with environmental sustainability.
Innovative Solutions: New products like ‘Urea Gold’ reduce nutrient wastage and improve absorption, while drone-based fertilization optimizes application.
PM PRANAM Initiative: This program encourages states to adopt alternative fertilizers like Nano Urea, Nano DAP, and organic fertilizers, aiming to improve soil health and minimize environmental pollution.