Challenges Facing Indian Agriculture

Source-This post on Challenges Facing Indian Agriculture has been created based on the article “Challenge for farm sector: How to share growth gains” published in “The Indian Express” on 4 June 2024.

UPSC Syllabus-GS Paper-3-Indian Agriculture

Context-The article highlights the difficult journey and challenges that the Indian agriculture sector faces as the country moves towards the “Amrit Kaal” (Golden Era) It emphasizes that policymakers haven’t managed to secure decent incomes for farmers, and the sector is stuck in a tough situation that might not be easy to improve.

What are the major challenges faced by agriculture?

1) Climate Change-The irreversible effects of climate change are impacting crop production and livelihoods through erratic climatic events.

2) World Trade Organization (WTO) Challenges- There is unfairness within the WTO and deliberate actions are taken by the US to weaken the dispute-resolution mechanism. This creates obstacles for India in enforcing these rulings domestically.

3) Small Landholdings- Most of the cultivable land is made up of small holdings, accounting for approximately 85%. This situation poses challenges for primary producers in sustaining a satisfactory income from agriculture.

4) Global Priority for Low Food Prices-The global focus on keeping food prices low for consumers often leads to lowering farm-gate prices artificially. This makes farming financially unremunerative and harms the environment in the long run.

5) Depleting Aquifers -There is a continuous depletion of aquifers due to the large demand for water for agriculture use.

6) Subsidies– The skewed fertilizer subsidy leads to indiscriminate use of fertilizers, impacting health and the planet.

7) Public Debt and Financial Flexibility-Government debt, both nationally and locally, limits financial flexibility for long-term planning and restricts the ability to continuously provide subsidies. Many states are on the brink of being technically bankrupt, yet there is no process for states to declare bankruptcy like countries can.

8) Governance and Accountability– The ineffective leadership and absence of responsibility in the government departments overseeing agriculture, both at the national and state levels stem from the authoritative attitude of top officials.

What should be the way forward?

1) Investment in Research and Extension Services– The government needs to enhance investments in agricultural research and extension services, as every rupee invested in agricultural research yields economic returns upwards of 10 times over other investments.

2) Inclusive and Sustainable Agriculture- The government’s attention should extend beyond enhancing agricultural productivity to ensuring the sustainability of these improvements. This should benefit all segments of society and foster inclusive growth.

3) Policy Reforms- The government should not only focus on incremental adjustments but rather on long-term policy reforms.

Question for practice

What are the major challenges faced by agriculture? What steps can be taken to address these challenges?