AGRICULTURAL INCOME INCREASES 5.23 PER CENT ANNUALLY OVER THE PAST DECADE

ALLIED SECTORS HAVE BECOME KEY DRIVERS OF AGRICULTURE GROWTH: ECONOMIC SURVEY

KHARIF FOODGRAIN PRODUCTION TO REACH 1647.05 LMT IN 2024

INDIA’S FOOD EXPORTS CONSTITUTE 11.7 PER CENT OF INDIA’S TOTAL EXPORTS, SEAFOOD EXPORTS GROW TO 29.70 PER CENT FROM FY-20 TO FY24

GOVERNMENT RAISED MSP SUPPORT FOR NUTRI CEREALS (SHREE ANNA), PULSES, OILSEEDS, ARHAR, BAJRA, MASUR AND RAPESEED

PLI SCHEME FOR FOOD PROCESSING: BENEFICIARIES INVEST ₹8,910 CRORE, RECEIVE ₹1,084.01 CRORE IN INCENTIVES BY OCTOBER, 2024

GOVERNMENT FULLY COMMITTED TO ACHIEVE 100 PER CENT e-KYC COMPLIANCE NATIONWIDE FOR PUBLIC DISTRIBUTION SYSTEM

India’s agricultural sector has demonstrated remarkable resilience in recent years, marked by consistent growth rates, which can be largely attributed to various government initiatives to enhance productivity, promote crop diversification, and increase farmers' income, states the Economic Survey 2024-25, tabled by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Parliament today.

The Economic Survey highlights that the ‘Agriculture and Allied Activities’ sector has long been the backbone of the Indian economy, playing a vital role in national income and employment. In recent years, the agriculture sector in India has shown robust growth, averaging 5 per cent annually from FY17 to FY23, demonstrating resilience despite challenges. In the second quarter of the 2024-25 fiscal year, the agriculture sector recorded a growth rate of 3.5 per cent. The Gross Value Added (GVA) of agriculture and related sectors, have improved from 24.38 per cent in the fiscal year FY15 to an impressive 30.23 per cent by FY23. Consistent and stable growth of agriculture at around 5 per cent, with a 20 per cent share of overall GVA in the economy, will contribute 1 per cent growth to GVA.

The Economic Survey notes that the kharif foodgrain production in 2024 is projected to reach 1647.05 Lakh Metric Tonnes (LMT), which is an increase of 89.37 LMT compared to the previous year. Agricultural income has increased at 5.23 per cent annually over the past decade, the survey adds.

The Economic Survey states that the government is implementing a range of initiatives aimed at enhancing agricultural productivity and increasing farmers' incomes, in alignment with the recommendations put forth in the Doubling Farmers' Income (DFI) Report 2016. This report highlighted essential strategies for improving crop and livestock productivity, boosting cropping intensity, and diversifying into high-value crops. The government is pursuing initiatives such as Per Drop More Crop (PDMC) and various actions under the National Mission on Sustainable Agriculture (NMSA). These measures include using alternative and organic fertilisers to enhance productivity and sustainability. Furthermore, digital initiatives like the Digital Agriculture Mission and the e-National Agriculture Market (e-NAM) have been launched to encourage the adoption of innovative agricultural technologies and improve price discovery mechanisms. Additionally, the government provides income support to farmers through assured remunerative prices for their produce, alongside programs such as the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN).

MINIMUM SUPPORT PRICE

The Economic Survey states that in the Union Budget of 2018-19, the government decided the principle of fixing MSP at a level of at least 1.5 times the weighted average cost of production for these crops. The government has raised the MSP for nutri cereals (Shree Anna), pulses, and oilseeds as part of these initiatives. For the fiscal year FY25, the MSP for arhar and bajra has been increased by 59 per cent and 77 per cent over the weighted average cost of production, respectively. Moreover, the MSP for Masur has risen by 89 per cent, while rapeseed has seen an impressive increase of 98 per cent.

IRRIGATION DEVELOPMENT

The Economic Survey states that the government has prioritised irrigation development and water conservation practices to enhance access to irrigation facilities. Since the FY16 fiscal year, the government has been implementing the Per Drop More Crop (PDMC) initiative, a component of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), to promote water efficiency. Financial assistance is provided at 55 per cent of the total project cost for small and marginal farmers, and 45 per cent for other farmers for installation of micro irrigation under PDMC. From FY16 to FY25 (end of Dec. 2024), ₹ 21968.75 crore was released to states for implementation of PDMC Scheme and an area of 95.58 lakh ha has been covered under which is about 104.67 per cent higher as compared to the Pre-PDMC period. The micro irrigation Fund (MIF) supports innovatiove projects through 2 per cent interest subvention to states on loans availed under MIF. Loans amounting to ₹4709 crore has been approved of which ₹3640 crore has been disbursed so far.

LIVESTOCK

The Economic Survey states that Allied Sectors have become key drivers of agriculture growth. The livestock sector alone represented 5.5 per cent of the total GVA, reflecting its dynamic growth trajectory, with a robust Compound Annual Growth Rate (CAGR) of 12.99 per cent. The economic significance of this sector is clearly illustrated by its escalating output value, which reached an astounding 17.25 lakh crore rupees (equivalent to US$205.81 billion) in FY23. Among the various branches of livestock production, the milk industry stands out, generating over ₹11.16 lakh crore (US$133.16 billion) in revenue. Government has supported the sector through interventions which include the Rashtriya Gokul Mission for the development and conservation of indigenous bovine breeds, the Livestock Health and Disease Control Program to enhance the well-being of livestock, Multipurpose AI Technicians in Rural India (MAITRIs) to deliver breeding inputs to farmers’ doorstep. In the last 4 years, 38736 MAITRIs have been inducted under Rashtriya Gokul Mission.

FISHERIES

The Economic Survey conveys that the government has implemented several initiatives to enhance the fisheries sector's production which include Pradhan Mantri Matsya Sampada Yojana (PMMSY) to boost aquaculture productivity and improve fisheries management, Fisheries and Aquaculture Infrastructure Development Fund (FIDF) to provide financial support for developing infrastructure in both marine and inland fisheries. Other initiatives include the establishment of fishing harbours and fish landing centres, the adoption of innovative production technologies such as cages, Recirculating Aquaculture Systems (RAS), bio flocs, pens, and raceways. Due to these initiatives, total fish production (both inland and marine) has surged to 184.02 lakh tonnes in FY 23, up from 95.79 lakh tonnes in FY14. Furthermore, India's seafood exports have risen from ₹46,662.85 crore in FY-20 to ₹60523.89 crore in 2023-24, reflecting a growth of 29.70 per cent. Under the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY), the National Fisheries Digital Platform (NFDP) successfully mobilized and registered 16.35 lakh fish producers, workers, vendors, and processors within a short timeframe of just four months.

FLORICULTURE

India's floriculture industry has grown into a high-performing sector, earning its status as a "sunrise industry" with a 100 per cent export orientation. With subsidy support and crop loan financing, it is a promising venture for marginal and small landholdings, which constitute more than 96 per cent of the total landholdings with 90.9 per cent of marginal landholdings and 63 per cent of the area of cultivation under floriculture. The exports increased by 14.55 per cent in April-October FY25 over April-October FY24. In FY24, approximately 297 thousand hectares were dedicated to floriculture, yielding an estimated 2,284 thousand tonnes of loose flowers and 947 thousand tonnes of cut flowers. During the same period, India exported 19,678 metric tonnes of floriculture products, earning ₹717.83 crore (USD 86.63 million).

HORTICULTURE

Economic Survey states that India is a leading exporter, shipping 343,982.34 MT of fresh grapes worth ₹3,460.70 crore (USD 417.07 million) globally in 2023-24. Key grape-growing states are Maharashtra, Karnataka, Tamil Nadu, and Mizoram. Maharashtra leads in production, contributing over 67 per cent of total output with the highest productivity in 2023-24. Grape cultivation has significantly improved the livelihoods of Nashik farmers where export-quality grapes fetch higher prices (₹65-70/kg) than domestic markets. Farmers have adopted advanced technologies like real-time monitoring systems to ensure optimal grape quality.  

FOOD PROCESSING

The Economic Survey highlights that in the fiscal year FY24, the value of agri-food exports, which includes processed food exports, reached USD 46.44 billion, constituting roughly 11.7 per cent of India’s total exports. Notably, the share of processed food exports within agri-food exports has risen from 14.9 per cent in FY18 to 23.4 per cent in FY24. Pradhan Mantri Kisan Sampada Yojana (PMKSY) aims to promote the overall advancement of the food processing industry. As of 31 October 2024, 1,079 PMKSY projects have been completed. Under Production Linked Incentive Scheme for Food Processing (PLISFPI), by 31 October 2024, 171 applications had been approved, with beneficiaries investing ₹8,910 crore and receiving ₹1,084.01 crore in incentives. Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme has received 407,819 applications, with loans totaling ₹8.63 thousand crore sanctioned to 108,580 applicants, as of 31 October 2024. Additionally, the programme has successfully trained 672 Master Trainers, 1,120 District Level Trainers, and 87,477 beneficiaries across 36 states and union territories.

FOOD MANAGEMENT:

To enhance the efficiency of the Public Distribution System (PDS), the government is fully committed to achieving 100 per cent e-KYC compliance nationwide. This aligns with the One Nation, One Ration Card (ONORC) scheme, allowing beneficiaries to complete electronic know your customer e-KYC anywhere, regardless of their home state. Beneficiaries can authenticate their Aadhaar biometrics at any Fair Price Shop (FPS). To facilitate post-harvest lending for farmers, especially small and marginal farmers, the government has approved the Credit Guarantee Scheme for electronic-negotiable warehouse receipt (e-NWR)-based Pledge Financing (CGS-NPF). Under this scheme, farmers can obtain loans against e-NWRs issued for agricultural and horticultural commodities stored in accredited warehouses. The scheme covers the loss incurred by the bank due to credit and warehouseman risk. The scheme will help in increasing postharvest lending against e-NWRs and thereby play a role in improving farmers’ income.