 "Policy consistency needed to expand production choices for farmers: FinMin")
Indian farmers can be encouraged to adopt technologies and practices through policy consistency and continuity, a finance ministry review of the Indian economy said.
That will expand their market and production choices, keeping in view ecological considerations, natural resource availability, and demand, according to the review.
The review, released on Monday, before the government presents its Interim Budget on Thursday, stressed the need for continuous innovation in crop varieties, technology adoption, and farming to meet the growing demand for a diversified and nutritious food basket.
Meanwhile, the review said the agricultural sector, which is estimated to constitute 18 per cent of India’s gross value added (GVA) in FY24 and is the bedrock of the economy, had demonstrated remarkable tenacity and resilience by contributing significantly to economic recovery and development despite the challenges posed by the global health crisis and variability in climate conditions.
“Agriculture grew at a higher average annual rate of 3.7 per cent from FY15 to FY23 compared to 3.4 per cent from FY05 to FY14. For the year FY23, the sector grew at 4.0 per cent as compared to the previous year,” the review said.
In FY24, the first advanced estimate estimated GVA for agriculture and allied sector at a seven-year low of 1.8 per cent due to weak kharif output and initial weakness in rabi sowing.
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Planting has been affected due to the uneven monsoon in 2023.
“India’s global dominance extends across agricultural commodities, making it the largest producer of milk, pulses, and spices worldwide. Given opportunities and an appropriate policy setting, India’s farmers have demonstrated their capability to meet food demand of the rest of the world. The potential is still huge,” the review said.
The review talked of the various policy initiatives that the Narendra Modi government had initiated for farmers since 2014 and how effective they had been.
“The policy initiatives, such as Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), and Pradhan Mantri Fasal Bima Yojana (PMFBY), have played a pivotal role in providing financial and income support to farmers,” the review said.
It added PM-KISAN, launched in 2019, supplemented the financial needs of landholding farmers by transferring Rs 6,000 per year in three equal four-monthly instalments.
“As of December 12, 2023, over Rs 2.8 lakh crore (Rs 2.8 trillion) have been transferred to more than 11 crore (1110 million) beneficiaries,” the review said.
It said the government was actively promoting digital inclusion and mechanisation to foster productivity, adding that the government’s push for technology adoption was evident in its efforts to make drone technology affordable to farmers.
On food security to the poor, the review said ensuring it, especially for vulnerable populations, was the cornerstone of government policies.