AGRICULTURAL SECTOR 2024 – YEAR END REVIEW

AGRICULTURAL SECTOR 2024 – YEAR END REVIEW

NEWS: Performance of Agricultural sector in India during 2024.

 

WHAT’S IN THE NEWS?

Inflation Index and MSP Concerns

  • A proposal has been raised to remove food prices from the inflation index to reduce volatility.
  • Simultaneously, there is demand to ensure crops are not sold below the government-declared Minimum Support Prices (MSP).
  • Data from October to December 2024 (kharif harvesting period) shows:

·         10 out of 14 crops had mandi (market yard) prices below MSP by 2-25%.

·         Only cotton, paddy, sesame, and tur had mandi prices above their respective MSPs.

  • This dual issue impacts farmers' income and consumers' purchasing power, leading to debates about acceptable solutions, especially for the middle class, which often protests rising food prices.

Agriculture Growth Projection

  • The Agriculture and Farmers’ Welfare Minister projects 3.5-4% growth in FY2024-25, compared to 1.4% in FY2023-24.
  • Key factors driving optimism:
    • Record foodgrain production due to favorable conditions.
    • A low base effect from the previous year.
    • Higher prices of agricultural and horticultural products in 2024, boosting the Gross Value Added (GVA) in the farm sector.
  • Agriculture and allied sectors contributed ₹4.73 lakh crore GVA in FY2023-24, with 17.7% share in the Indian economy.

Concerns About GM Crops

  • The government has reiterated its opposition to genetically modified (GM) crops, citing concerns from sections of the scientific community.
  • Despite this, there is openness to gene editing technology:
    • Gene editing is considered a tool to develop climate-resilient crops and improve productivity.
    • The government has permitted adoption of gene-edited crop varieties to address climate-related challenges and meet food demand.
  • Scientists argue that reliance on traditional approaches limits the potential of cutting-edge agricultural technologies.

Challenges in Technology Adoption

  • The gap between research advancements and field-level implementation is significant, largely due to:

·         The collapse of the agricultural extension system.

·         Heavy reliance on ICAR (Indian Council of Agricultural Research) without adequate infrastructure support.

  • Concerns include:

·         Fear of price controls discouraging foreign technologies from entering India.

·         Lack of intellectual property rights protection hindering technology transfers.

  • Government initiatives promote natural farming, pushing fertilizer companies to diversify into non-chemical crop nutrients.

Agricultural Marketing Reforms

  • The Centre is revisiting reforms similar to the 2021 repealed farm laws, but this time through state-level frameworks:

·         A draft “National Policy Framework on Agricultural Marketing” seeks to:

    • Enable farmers to access multiple marketing channels for better price realization.
    • Improve efficiency, competition, transparency, and infrastructure.
    • Utilize innovative digital technologies and agri-value chains.

·         States are tasked with preparing their own policy frameworks aligned with the national draft.

  • The goal is to build a vibrant marketing ecosystem that eliminates monopolistic practices and improves farmers' incomes.

Foodgrain Production Challenge

  • By 2047, India’s population is expected to grow to 1.6 billion, requiring foodgrain production to increase from 335 million tonnes (MT) to 500 MT.
  • Challenges include:

·         Shrinking cultivable land due to urbanization and industrialization.

·         Climate change impacts, including droughts, waterlogging, and high temperatures.

  • Vertical productivity enhancement through technological innovation is seen as the only solution to meet growing food demands.

ICAR's Contributions

  • ICAR has developed nearly 2,900 crop varieties, including:
    • 2,666 climate-resilient varieties that perform under drought, stress, high temperatures, and waterlogging.
    • 152 biofortified varieties released in the last decade to address nutritional deficiencies (e.g., iron, zinc, vitamins, folic acid).
  • These innovations aim to improve both productivity and nutrition, addressing the needs of the world's most populous country.

Pulses and Oilseeds Productivity

  • Pulses: Production has improved significantly, rising from 16 MT in 2017 to 26 MT recently, reflecting advances in crop development.
  • Oilseeds (e.g., Soybean):

·         India’s productivity is 1,200 kg/ha, much lower than the global average of 2,500 kg/ha.

·         A large portion of imported edible oil (e.g., soybean oil) comes from countries like Brazil, Argentina, and the US, where GM technology is extensively used.

·         Critics point out that India already consumes GM-derived products like soybean oil without reported adverse effects, highlighting contradictions in policy.

GM Technology vs. Genome Editing

  • The ban on GM crops limits access to globally successful technologies that boost productivity.
  • However, India has embraced genome editing, with government protocols enabling the development of non-GM crop varieties:

·         Genome-edited crops bypass regulatory hurdles for GM crops.

·         These methods provide opportunities for innovation while addressing safety concerns.

Natural Farming and Policy Directions

  • The government’s policy to shift towards natural farming reflects a focus on sustainability.
  • Fertilizer companies are diversifying into non-chemical alternatives to align with this direction.
  • Concerns remain over the timeliness and effectiveness of the shift, as significant structural and market changes are required to support these reforms.

Future Directions and the Road Ahead

  • Meeting future challenges requires:

·         Strengthening the agricultural extension system to bridge the gap between research and field-level implementation.

·         Encouraging technology transfer while protecting intellectual property rights.

·         Expanding access to climate-resilient and biofortified crops to boost productivity and nutrition.

·         Implementing robust marketing reforms to ensure fair prices and competition for farmers.

  • While policies and innovations show promise, long-term success depends on efficient execution and stakeholder collaboration.

Source: https://www.thehindubusinessline.com/economy/agriculture-price-remains-key-concern-in-2024-even-as-india-to-fight-climate-impact/article69057667.ece#:~:text=Besides%2C%20prices%20of%20many%20agriculture,lakh%20crore%20in%202023%2D24.