India's agriculture sector has been witnessing robust growth with an average annual growth rate of 4.6 per cent over the last six years. This has enabled agriculture and allied activities sector to contribute significantly towards countries overall growth, development and food security, says the Economic Survey 2022-23. Further in recent years the country has emerged as the net exporter of agricultural products, with exports in 2021-22 touching a record US $ 50.2 billion.
The Government has been increasing the MSP for all 22 Kharif, Rabi and other commercial crops with a margin of at least 50 per cent over the all-India weighted average cost of production since the agricultural year 2018-19, says the Survey. Relatively higher MSP was given to pulses and oilseeds in order to keep pace with the changing dietary patterns and achieve the goal of self-sufficiency.
Digital public infrastructure for agriculture will be built as an open source, open standard and inter operable public good. An Agriculture Accelerator Fund will be set-up to encourage agri-startups by young entrepreneurs in rural areas. The Fund will aim at bringing innovative and affordable solutions for challenges faced by farmers. To enhance the productivity of extra-long staple cotton, the government will adopt a cluster-based and value chain approach through Public Private Partnerships (PPP).
The government will launch an Atmanirbhar Clean Plant Program to boost availability of disease-free, quality planting material for high value horticultural crops at an outlay of Rs 2,200 crore. To make India a global hub for 'Shree Anna', the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research and technologies at the international level. The agriculture credit target will be increased to Rs 20 lakh crore with focus on animal husbandry, dairy and fisheries.
Outlook:
Given the consistent focus on boosting farmer's incomes, some direct schemes boosting the same could have been launched in the latest budget. There is likelihood that rising domestic incomes across the board will keep up the demand for food articles elevated across the board. This will need further improvement in the productivity of key commodities like grains, edible oils and pulses. In this regard, a drop in the fertiliser and food subsidies could turn out to be tricky. The government slashed its fertiliser and food subsidies by 22% and 31% respectively for the upcoming fiscal.