Agriculture & Food Management 2022-23 | Indian Economy for UPSC CSE PDF Download

 Page 1


CHAPTER
08
The performance of the agriculture and allied sector has been buoyant over the past 
several years, much of which is on account of the measures taken by the government to 
augment crop and livestock productivity, ensure certainty of returns to the farmers through 
price support, promote crop diversification, improve market infrastructure through the 
impetus provided for the setting up of farmer-producer organisations and promotion of 
investment in infrastructure facilities through the Agriculture Infrastructure Fund. The 
chapter discusses these aspects while also focussing on other government interventions to 
enhance credit availability, facilitate mechanisation and boost horticulture and organic 
farming.  
The chapter documents the performance of the animal husbandry, dairying and fisheries 
sectors, which are increasingly recognised as emerging sectors by way of performance 
relative to the crop sector and their importance in the food basket and the farmers’ 
incomes. 
The legislation-backed nationwide food management programme, the National Food 
Security Act (NFSA), is discussed.  To remove the financial burden of the poor, the 
Government has taken a decision to give free foodgrains to about 81.4 crore beneficiaries 
under the NFSA for one year from January 1, 2023
Introduction
8.1 With its solid forward linkages, the agriculture and allied activities sector significantly 
contributed to the country's overall growth and development by ensuring food security. The 
Indian agriculture sector has been growing at an average annual growth rate of 4.6 per cent 
during the last six years.  It grew by 3.0 per cent in 2021-22 compared to 3.3 per cent in 2020-
21. In recent years, India has also rapidly emerged as the net exporter of agricultural products. 
In 2020-21, exports of agriculture and allied products from India grew by 18 per cent over 
the previous year.  During 2021-22, agricultural exports reached an all-time high of US$ 50.2 
billion.  This period of buoyant performance could be ascribed to the measures taken by the 
Government to promote farmer-producer organisations, encourage crop diversification, and 
improve productivity in agriculture through support provided for mechanisation and the creation 
of the Agriculture Infrastructure Fund. Thus, enabling the country, in the spirit of Vasudhaiva 
AGRICULTURE AND FOOD  
MANAGEMENT: FROM FOOD  
SECURITY TO NUTRITIONAL 
SECURITY
Page 2


CHAPTER
08
The performance of the agriculture and allied sector has been buoyant over the past 
several years, much of which is on account of the measures taken by the government to 
augment crop and livestock productivity, ensure certainty of returns to the farmers through 
price support, promote crop diversification, improve market infrastructure through the 
impetus provided for the setting up of farmer-producer organisations and promotion of 
investment in infrastructure facilities through the Agriculture Infrastructure Fund. The 
chapter discusses these aspects while also focussing on other government interventions to 
enhance credit availability, facilitate mechanisation and boost horticulture and organic 
farming.  
The chapter documents the performance of the animal husbandry, dairying and fisheries 
sectors, which are increasingly recognised as emerging sectors by way of performance 
relative to the crop sector and their importance in the food basket and the farmers’ 
incomes. 
The legislation-backed nationwide food management programme, the National Food 
Security Act (NFSA), is discussed.  To remove the financial burden of the poor, the 
Government has taken a decision to give free foodgrains to about 81.4 crore beneficiaries 
under the NFSA for one year from January 1, 2023
Introduction
8.1 With its solid forward linkages, the agriculture and allied activities sector significantly 
contributed to the country's overall growth and development by ensuring food security. The 
Indian agriculture sector has been growing at an average annual growth rate of 4.6 per cent 
during the last six years.  It grew by 3.0 per cent in 2021-22 compared to 3.3 per cent in 2020-
21. In recent years, India has also rapidly emerged as the net exporter of agricultural products. 
In 2020-21, exports of agriculture and allied products from India grew by 18 per cent over 
the previous year.  During 2021-22, agricultural exports reached an all-time high of US$ 50.2 
billion.  This period of buoyant performance could be ascribed to the measures taken by the 
Government to promote farmer-producer organisations, encourage crop diversification, and 
improve productivity in agriculture through support provided for mechanisation and the creation 
of the Agriculture Infrastructure Fund. Thus, enabling the country, in the spirit of Vasudhaiva 
AGRICULTURE AND FOOD  
MANAGEMENT: FROM FOOD  
SECURITY TO NUTRITIONAL 
SECURITY
244 Economic Survey 2022-23
Kutumbakam, to provide necessary and essential support to other countries for the losses faced 
during Covid-19. Further, income support to farmers through the Pradhan Mantri Kisan Samman 
Nidhi (PM-KISAN) and the promotion of allied activities has led to diversification in sources of 
farmers’ income, improving their resilience to weather shocks.
Figure VIII.1: Despite Covid-19 shock agriculture and allied sector shows resilient growth
 
-0.2 
0.6 
6.8 
6.6 
2.1 
5.5 
3.3 
3.0 
-2.0
0.0
2.0
4.0
6.0
8.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
 per cent 
 Source: MoSPI’s Annual and Quarterly Estimates of GDP at constant prices, 2011-12 series.
8.2 The interventions of the Government have been in line with the recommendations of the 
Committee on Doubling Farmers' Income, which had identified improvement in crop and livestock 
productivity, diversification towards higher value crops, better resource efficiency, enhanced 
cropping intensity, improvement in real prices received by farmers and shift from farm to non-
farm occupations as being significant sources of growth. Several policy measures, such as the 
Minimum Support Price (MSP) to secure the price at one and half times the all-India weighted 
average cost of production, schemes and price measures to focus on high-value added crops such 
as oilseed, incentives for crop diversification through price policy measures, improvements in 
agricultural marketing and by enhancing resource use efficiency etc. have been adopted. While 
Indian agriculture has performed well, the sector needs re-orientation in the backdrop of certain 
challenges like adverse impacts of climate change, fragmented landholdings, sub-optimal farm 
mechanisation, low productivity, disguised unemployment, rising input costs, etc.
Various policy initiatives introduced and implemented to deal with these issues are discussed 
later in this chapter.
Figure VIII.2: Crowding in of Private investment in agriculture
 
5.4 5.3 
4.7 4.8 
4.6 
4.9 
4.7 
4.9 
4.3 4.3 
9.3 
8.0 
9.6 
8.5 
6.9 
7.5 
6.8 
6.6 
7.0 
9.3 
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
 per cent 
Public Private
 Source: Agricultural Statistics at a Glance 2021.
Page 3


CHAPTER
08
The performance of the agriculture and allied sector has been buoyant over the past 
several years, much of which is on account of the measures taken by the government to 
augment crop and livestock productivity, ensure certainty of returns to the farmers through 
price support, promote crop diversification, improve market infrastructure through the 
impetus provided for the setting up of farmer-producer organisations and promotion of 
investment in infrastructure facilities through the Agriculture Infrastructure Fund. The 
chapter discusses these aspects while also focussing on other government interventions to 
enhance credit availability, facilitate mechanisation and boost horticulture and organic 
farming.  
The chapter documents the performance of the animal husbandry, dairying and fisheries 
sectors, which are increasingly recognised as emerging sectors by way of performance 
relative to the crop sector and their importance in the food basket and the farmers’ 
incomes. 
The legislation-backed nationwide food management programme, the National Food 
Security Act (NFSA), is discussed.  To remove the financial burden of the poor, the 
Government has taken a decision to give free foodgrains to about 81.4 crore beneficiaries 
under the NFSA for one year from January 1, 2023
Introduction
8.1 With its solid forward linkages, the agriculture and allied activities sector significantly 
contributed to the country's overall growth and development by ensuring food security. The 
Indian agriculture sector has been growing at an average annual growth rate of 4.6 per cent 
during the last six years.  It grew by 3.0 per cent in 2021-22 compared to 3.3 per cent in 2020-
21. In recent years, India has also rapidly emerged as the net exporter of agricultural products. 
In 2020-21, exports of agriculture and allied products from India grew by 18 per cent over 
the previous year.  During 2021-22, agricultural exports reached an all-time high of US$ 50.2 
billion.  This period of buoyant performance could be ascribed to the measures taken by the 
Government to promote farmer-producer organisations, encourage crop diversification, and 
improve productivity in agriculture through support provided for mechanisation and the creation 
of the Agriculture Infrastructure Fund. Thus, enabling the country, in the spirit of Vasudhaiva 
AGRICULTURE AND FOOD  
MANAGEMENT: FROM FOOD  
SECURITY TO NUTRITIONAL 
SECURITY
244 Economic Survey 2022-23
Kutumbakam, to provide necessary and essential support to other countries for the losses faced 
during Covid-19. Further, income support to farmers through the Pradhan Mantri Kisan Samman 
Nidhi (PM-KISAN) and the promotion of allied activities has led to diversification in sources of 
farmers’ income, improving their resilience to weather shocks.
Figure VIII.1: Despite Covid-19 shock agriculture and allied sector shows resilient growth
 
-0.2 
0.6 
6.8 
6.6 
2.1 
5.5 
3.3 
3.0 
-2.0
0.0
2.0
4.0
6.0
8.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
 per cent 
 Source: MoSPI’s Annual and Quarterly Estimates of GDP at constant prices, 2011-12 series.
8.2 The interventions of the Government have been in line with the recommendations of the 
Committee on Doubling Farmers' Income, which had identified improvement in crop and livestock 
productivity, diversification towards higher value crops, better resource efficiency, enhanced 
cropping intensity, improvement in real prices received by farmers and shift from farm to non-
farm occupations as being significant sources of growth. Several policy measures, such as the 
Minimum Support Price (MSP) to secure the price at one and half times the all-India weighted 
average cost of production, schemes and price measures to focus on high-value added crops such 
as oilseed, incentives for crop diversification through price policy measures, improvements in 
agricultural marketing and by enhancing resource use efficiency etc. have been adopted. While 
Indian agriculture has performed well, the sector needs re-orientation in the backdrop of certain 
challenges like adverse impacts of climate change, fragmented landholdings, sub-optimal farm 
mechanisation, low productivity, disguised unemployment, rising input costs, etc.
Various policy initiatives introduced and implemented to deal with these issues are discussed 
later in this chapter.
Figure VIII.2: Crowding in of Private investment in agriculture
 
5.4 5.3 
4.7 4.8 
4.6 
4.9 
4.7 
4.9 
4.3 4.3 
9.3 
8.0 
9.6 
8.5 
6.9 
7.5 
6.8 
6.6 
7.0 
9.3 
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
 per cent 
Public Private
 Source: Agricultural Statistics at a Glance 2021.
245 Agriculture and Food Management: From Food Security to Nutritional Security
Figure VIII.3: India’s Electricity Consumption in Agriculture (Annual)
 
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
 GWh 
Thousand 
 Source: Ministry of Statistics and Programme Implementation
Record Production of Foodgrains 
8.3 As per Fourth Advance Estimates for 2021-22, the production of food grains and oil seeds 
has been increasing Year-on-Year (YoY). Production of pulses has also been notably higher than 
the average of 23.8 million tonnes in the last five years. However, as indicated earlier changing 
climate has been impacting agriculture adversely. The year 2022 witnessed an early heat wave 
during the wheat-harvesting season, adversely affecting its production. The year experienced a 
decline in the sown area for paddy cultivation too in the Kharif season due to delayed monsoons 
and deficient rainfall. As per First Advance Estimates 2022-23 (kharif only) the paddy area was 
about 3.8 lakh hectares less than the sown area of 411.2 lakh hectare during 2021-22 (kharif 
season). Further, in the current rabi season the area under rabi paddy has expanded by 6.6 lakh 
hectares as compared to last year (Crop Weather Watch Group 12 January 2023).  As per the 
First Advance Estimates for 2022-23 (Kharif only), total food grains production in the country is 
estimated at 149.9 million tonnes which is higher than the average Kharif food grain production 
of the previous five years (2016-17 to 2020-21). Despite a fall in the sown area of Kharif paddy, 
the total production of Kharif rice during 2022-23 is estimated at 104.9 million tonnes, which 
is higher than the previous five years (2016-17 to 2020-21) average Kharif rice production of 
100.5 million tonnes.
Figure VIII.4: Sustained increase in Foodgrains Production in India (Million Tonnes)
 
252.0 251.5 
275.1 
285.0 285.2 
297.5 
310.7 
315.7 
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Total Foodgrains 
million tonnes 
Pulses and oilseeds 
million tonnes  
Oilseeds Pulses Total Fodgrains
      Source: 1st Advance Estimates (2022-23) of DA&FW released dated 21.09.2022.
Page 4


CHAPTER
08
The performance of the agriculture and allied sector has been buoyant over the past 
several years, much of which is on account of the measures taken by the government to 
augment crop and livestock productivity, ensure certainty of returns to the farmers through 
price support, promote crop diversification, improve market infrastructure through the 
impetus provided for the setting up of farmer-producer organisations and promotion of 
investment in infrastructure facilities through the Agriculture Infrastructure Fund. The 
chapter discusses these aspects while also focussing on other government interventions to 
enhance credit availability, facilitate mechanisation and boost horticulture and organic 
farming.  
The chapter documents the performance of the animal husbandry, dairying and fisheries 
sectors, which are increasingly recognised as emerging sectors by way of performance 
relative to the crop sector and their importance in the food basket and the farmers’ 
incomes. 
The legislation-backed nationwide food management programme, the National Food 
Security Act (NFSA), is discussed.  To remove the financial burden of the poor, the 
Government has taken a decision to give free foodgrains to about 81.4 crore beneficiaries 
under the NFSA for one year from January 1, 2023
Introduction
8.1 With its solid forward linkages, the agriculture and allied activities sector significantly 
contributed to the country's overall growth and development by ensuring food security. The 
Indian agriculture sector has been growing at an average annual growth rate of 4.6 per cent 
during the last six years.  It grew by 3.0 per cent in 2021-22 compared to 3.3 per cent in 2020-
21. In recent years, India has also rapidly emerged as the net exporter of agricultural products. 
In 2020-21, exports of agriculture and allied products from India grew by 18 per cent over 
the previous year.  During 2021-22, agricultural exports reached an all-time high of US$ 50.2 
billion.  This period of buoyant performance could be ascribed to the measures taken by the 
Government to promote farmer-producer organisations, encourage crop diversification, and 
improve productivity in agriculture through support provided for mechanisation and the creation 
of the Agriculture Infrastructure Fund. Thus, enabling the country, in the spirit of Vasudhaiva 
AGRICULTURE AND FOOD  
MANAGEMENT: FROM FOOD  
SECURITY TO NUTRITIONAL 
SECURITY
244 Economic Survey 2022-23
Kutumbakam, to provide necessary and essential support to other countries for the losses faced 
during Covid-19. Further, income support to farmers through the Pradhan Mantri Kisan Samman 
Nidhi (PM-KISAN) and the promotion of allied activities has led to diversification in sources of 
farmers’ income, improving their resilience to weather shocks.
Figure VIII.1: Despite Covid-19 shock agriculture and allied sector shows resilient growth
 
-0.2 
0.6 
6.8 
6.6 
2.1 
5.5 
3.3 
3.0 
-2.0
0.0
2.0
4.0
6.0
8.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
 per cent 
 Source: MoSPI’s Annual and Quarterly Estimates of GDP at constant prices, 2011-12 series.
8.2 The interventions of the Government have been in line with the recommendations of the 
Committee on Doubling Farmers' Income, which had identified improvement in crop and livestock 
productivity, diversification towards higher value crops, better resource efficiency, enhanced 
cropping intensity, improvement in real prices received by farmers and shift from farm to non-
farm occupations as being significant sources of growth. Several policy measures, such as the 
Minimum Support Price (MSP) to secure the price at one and half times the all-India weighted 
average cost of production, schemes and price measures to focus on high-value added crops such 
as oilseed, incentives for crop diversification through price policy measures, improvements in 
agricultural marketing and by enhancing resource use efficiency etc. have been adopted. While 
Indian agriculture has performed well, the sector needs re-orientation in the backdrop of certain 
challenges like adverse impacts of climate change, fragmented landholdings, sub-optimal farm 
mechanisation, low productivity, disguised unemployment, rising input costs, etc.
Various policy initiatives introduced and implemented to deal with these issues are discussed 
later in this chapter.
Figure VIII.2: Crowding in of Private investment in agriculture
 
5.4 5.3 
4.7 4.8 
4.6 
4.9 
4.7 
4.9 
4.3 4.3 
9.3 
8.0 
9.6 
8.5 
6.9 
7.5 
6.8 
6.6 
7.0 
9.3 
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
 per cent 
Public Private
 Source: Agricultural Statistics at a Glance 2021.
245 Agriculture and Food Management: From Food Security to Nutritional Security
Figure VIII.3: India’s Electricity Consumption in Agriculture (Annual)
 
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
 GWh 
Thousand 
 Source: Ministry of Statistics and Programme Implementation
Record Production of Foodgrains 
8.3 As per Fourth Advance Estimates for 2021-22, the production of food grains and oil seeds 
has been increasing Year-on-Year (YoY). Production of pulses has also been notably higher than 
the average of 23.8 million tonnes in the last five years. However, as indicated earlier changing 
climate has been impacting agriculture adversely. The year 2022 witnessed an early heat wave 
during the wheat-harvesting season, adversely affecting its production. The year experienced a 
decline in the sown area for paddy cultivation too in the Kharif season due to delayed monsoons 
and deficient rainfall. As per First Advance Estimates 2022-23 (kharif only) the paddy area was 
about 3.8 lakh hectares less than the sown area of 411.2 lakh hectare during 2021-22 (kharif 
season). Further, in the current rabi season the area under rabi paddy has expanded by 6.6 lakh 
hectares as compared to last year (Crop Weather Watch Group 12 January 2023).  As per the 
First Advance Estimates for 2022-23 (Kharif only), total food grains production in the country is 
estimated at 149.9 million tonnes which is higher than the average Kharif food grain production 
of the previous five years (2016-17 to 2020-21). Despite a fall in the sown area of Kharif paddy, 
the total production of Kharif rice during 2022-23 is estimated at 104.9 million tonnes, which 
is higher than the previous five years (2016-17 to 2020-21) average Kharif rice production of 
100.5 million tonnes.
Figure VIII.4: Sustained increase in Foodgrains Production in India (Million Tonnes)
 
252.0 251.5 
275.1 
285.0 285.2 
297.5 
310.7 
315.7 
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Total Foodgrains 
million tonnes 
Pulses and oilseeds 
million tonnes  
Oilseeds Pulses Total Fodgrains
      Source: 1st Advance Estimates (2022-23) of DA&FW released dated 21.09.2022.
246 Economic Survey 2022-23
MSP to Ensure Returns Over the Cost of Production
8.4 The Union Budget for 2018-19 announced that farmers in India would be given an MSP 
of at least one and a half times the cost of production. Accordingly, 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. Given nutritional requirements and changing dietary patterns and to achieve self-
sufficiency in pulses and oilseeds production, the Government has fixed relatively higher MSP 
for pulses and oilseeds. 
Figure VIII.5: Minimum Support Price for selected Kharif and Rabi Crops (?/Quintal)
 
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Paddy (Common)
Maize
Tur
Moong
Urad
Groundnut
Soyabean (yellow)
Cotton (Long Staple)
Wheat
Gram
Rapeseed & Mustard
(?/ Qu i n tal) 
2013-14 2018-19 2019-20 2020-21 2021-22 2022-23
 Source: Based on data of DAFW and CACP.
Enhanced Access to Agricultural Credit
8.5 Ensuring hassle-free credit availability at a cheaper rate to farmers has been the top priority 
of the Government of India. Accordingly, the Kisan Credit Card Scheme (KCC) was introduced 
in 1998 for farmers to empower them to purchase agricultural products and services on credit 
at any time. As of 30 December, 2022, banks issued Kisan Credit Cards (KCC) to 3.89 crore 
eligible farmers with a KCC limit of ?4,51,672 crore. With the Government of India extending 
the KCC facility to fisheries and animal husbandry farmers in 2018-19, the number of such 
cards in the fisheries and animal husbandry sector has also grown. As of 17 October 2022, 1.0 
lakh KCCs have been sanctioned for the fisheries sector and 9.5 lakh (as of 4 November 2022) 
for the animal husbandry sector.
8.6 To ensure that the farmers pay a minimal interest rate to the banks, the Government of 
India has introduced the Interest Subvention Scheme (ISS), now renamed Modified Interest 
Subvention Scheme (MISS), to provide short-term credit to farmers at subsidised interest rates. 
Under this scheme, short-term agriculture loan up to ?3 lakh is available at 7 per cent per annum 
to farmers engaged in Agriculture and other Allied activities, including Animal Husbandry, 
Page 5


CHAPTER
08
The performance of the agriculture and allied sector has been buoyant over the past 
several years, much of which is on account of the measures taken by the government to 
augment crop and livestock productivity, ensure certainty of returns to the farmers through 
price support, promote crop diversification, improve market infrastructure through the 
impetus provided for the setting up of farmer-producer organisations and promotion of 
investment in infrastructure facilities through the Agriculture Infrastructure Fund. The 
chapter discusses these aspects while also focussing on other government interventions to 
enhance credit availability, facilitate mechanisation and boost horticulture and organic 
farming.  
The chapter documents the performance of the animal husbandry, dairying and fisheries 
sectors, which are increasingly recognised as emerging sectors by way of performance 
relative to the crop sector and their importance in the food basket and the farmers’ 
incomes. 
The legislation-backed nationwide food management programme, the National Food 
Security Act (NFSA), is discussed.  To remove the financial burden of the poor, the 
Government has taken a decision to give free foodgrains to about 81.4 crore beneficiaries 
under the NFSA for one year from January 1, 2023
Introduction
8.1 With its solid forward linkages, the agriculture and allied activities sector significantly 
contributed to the country's overall growth and development by ensuring food security. The 
Indian agriculture sector has been growing at an average annual growth rate of 4.6 per cent 
during the last six years.  It grew by 3.0 per cent in 2021-22 compared to 3.3 per cent in 2020-
21. In recent years, India has also rapidly emerged as the net exporter of agricultural products. 
In 2020-21, exports of agriculture and allied products from India grew by 18 per cent over 
the previous year.  During 2021-22, agricultural exports reached an all-time high of US$ 50.2 
billion.  This period of buoyant performance could be ascribed to the measures taken by the 
Government to promote farmer-producer organisations, encourage crop diversification, and 
improve productivity in agriculture through support provided for mechanisation and the creation 
of the Agriculture Infrastructure Fund. Thus, enabling the country, in the spirit of Vasudhaiva 
AGRICULTURE AND FOOD  
MANAGEMENT: FROM FOOD  
SECURITY TO NUTRITIONAL 
SECURITY
244 Economic Survey 2022-23
Kutumbakam, to provide necessary and essential support to other countries for the losses faced 
during Covid-19. Further, income support to farmers through the Pradhan Mantri Kisan Samman 
Nidhi (PM-KISAN) and the promotion of allied activities has led to diversification in sources of 
farmers’ income, improving their resilience to weather shocks.
Figure VIII.1: Despite Covid-19 shock agriculture and allied sector shows resilient growth
 
-0.2 
0.6 
6.8 
6.6 
2.1 
5.5 
3.3 
3.0 
-2.0
0.0
2.0
4.0
6.0
8.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
 per cent 
 Source: MoSPI’s Annual and Quarterly Estimates of GDP at constant prices, 2011-12 series.
8.2 The interventions of the Government have been in line with the recommendations of the 
Committee on Doubling Farmers' Income, which had identified improvement in crop and livestock 
productivity, diversification towards higher value crops, better resource efficiency, enhanced 
cropping intensity, improvement in real prices received by farmers and shift from farm to non-
farm occupations as being significant sources of growth. Several policy measures, such as the 
Minimum Support Price (MSP) to secure the price at one and half times the all-India weighted 
average cost of production, schemes and price measures to focus on high-value added crops such 
as oilseed, incentives for crop diversification through price policy measures, improvements in 
agricultural marketing and by enhancing resource use efficiency etc. have been adopted. While 
Indian agriculture has performed well, the sector needs re-orientation in the backdrop of certain 
challenges like adverse impacts of climate change, fragmented landholdings, sub-optimal farm 
mechanisation, low productivity, disguised unemployment, rising input costs, etc.
Various policy initiatives introduced and implemented to deal with these issues are discussed 
later in this chapter.
Figure VIII.2: Crowding in of Private investment in agriculture
 
5.4 5.3 
4.7 4.8 
4.6 
4.9 
4.7 
4.9 
4.3 4.3 
9.3 
8.0 
9.6 
8.5 
6.9 
7.5 
6.8 
6.6 
7.0 
9.3 
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
 per cent 
Public Private
 Source: Agricultural Statistics at a Glance 2021.
245 Agriculture and Food Management: From Food Security to Nutritional Security
Figure VIII.3: India’s Electricity Consumption in Agriculture (Annual)
 
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
 GWh 
Thousand 
 Source: Ministry of Statistics and Programme Implementation
Record Production of Foodgrains 
8.3 As per Fourth Advance Estimates for 2021-22, the production of food grains and oil seeds 
has been increasing Year-on-Year (YoY). Production of pulses has also been notably higher than 
the average of 23.8 million tonnes in the last five years. However, as indicated earlier changing 
climate has been impacting agriculture adversely. The year 2022 witnessed an early heat wave 
during the wheat-harvesting season, adversely affecting its production. The year experienced a 
decline in the sown area for paddy cultivation too in the Kharif season due to delayed monsoons 
and deficient rainfall. As per First Advance Estimates 2022-23 (kharif only) the paddy area was 
about 3.8 lakh hectares less than the sown area of 411.2 lakh hectare during 2021-22 (kharif 
season). Further, in the current rabi season the area under rabi paddy has expanded by 6.6 lakh 
hectares as compared to last year (Crop Weather Watch Group 12 January 2023).  As per the 
First Advance Estimates for 2022-23 (Kharif only), total food grains production in the country is 
estimated at 149.9 million tonnes which is higher than the average Kharif food grain production 
of the previous five years (2016-17 to 2020-21). Despite a fall in the sown area of Kharif paddy, 
the total production of Kharif rice during 2022-23 is estimated at 104.9 million tonnes, which 
is higher than the previous five years (2016-17 to 2020-21) average Kharif rice production of 
100.5 million tonnes.
Figure VIII.4: Sustained increase in Foodgrains Production in India (Million Tonnes)
 
252.0 251.5 
275.1 
285.0 285.2 
297.5 
310.7 
315.7 
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Total Foodgrains 
million tonnes 
Pulses and oilseeds 
million tonnes  
Oilseeds Pulses Total Fodgrains
      Source: 1st Advance Estimates (2022-23) of DA&FW released dated 21.09.2022.
246 Economic Survey 2022-23
MSP to Ensure Returns Over the Cost of Production
8.4 The Union Budget for 2018-19 announced that farmers in India would be given an MSP 
of at least one and a half times the cost of production. Accordingly, 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. Given nutritional requirements and changing dietary patterns and to achieve self-
sufficiency in pulses and oilseeds production, the Government has fixed relatively higher MSP 
for pulses and oilseeds. 
Figure VIII.5: Minimum Support Price for selected Kharif and Rabi Crops (?/Quintal)
 
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Paddy (Common)
Maize
Tur
Moong
Urad
Groundnut
Soyabean (yellow)
Cotton (Long Staple)
Wheat
Gram
Rapeseed & Mustard
(?/ Qu i n tal) 
2013-14 2018-19 2019-20 2020-21 2021-22 2022-23
 Source: Based on data of DAFW and CACP.
Enhanced Access to Agricultural Credit
8.5 Ensuring hassle-free credit availability at a cheaper rate to farmers has been the top priority 
of the Government of India. Accordingly, the Kisan Credit Card Scheme (KCC) was introduced 
in 1998 for farmers to empower them to purchase agricultural products and services on credit 
at any time. As of 30 December, 2022, banks issued Kisan Credit Cards (KCC) to 3.89 crore 
eligible farmers with a KCC limit of ?4,51,672 crore. With the Government of India extending 
the KCC facility to fisheries and animal husbandry farmers in 2018-19, the number of such 
cards in the fisheries and animal husbandry sector has also grown. As of 17 October 2022, 1.0 
lakh KCCs have been sanctioned for the fisheries sector and 9.5 lakh (as of 4 November 2022) 
for the animal husbandry sector.
8.6 To ensure that the farmers pay a minimal interest rate to the banks, the Government of 
India has introduced the Interest Subvention Scheme (ISS), now renamed Modified Interest 
Subvention Scheme (MISS), to provide short-term credit to farmers at subsidised interest rates. 
Under this scheme, short-term agriculture loan up to ?3 lakh is available at 7 per cent per annum 
to farmers engaged in Agriculture and other Allied activities, including Animal Husbandry, 
247 Agriculture and Food Management: From Food Security to Nutritional Security
Dairying, Poultry, Fisheries etc. An additional 3 per cent subvention (Prompt Repayment 
Incentive) is also given to the farmers for prompt and timely repayment of loans. Therefore, if a 
farmer repays his loan on time, he gets credit at 4 per cent per annum.
8.7 As a result of the initiatives taken and the measures to strengthen existing policies, there 
has been a consistent increase in the agriculture credit flow over the years, exceeding the target 
every year for the past several years. In 2021-22 also, it was about 13 per cent more than the 
target of ?16.5 lakh crore. The target for the flow of credit to agriculture for 2022-23 has been 
fixed at ?18.5 lakh crore.  
Figure VIII.6: Continued Increase in Institutional Credit to Agriculture Sector (? lakh crore)
 
8.5
9.2
10.7
11.6
12.6
13.9
15.8
18.6
0
20
40
60
80
100
120
140
160
180
200
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
(? lakh Crore)
Source: Based on data from DAFW and Agricultural Statistics at a Glance 2021.
Farm mechanisation- Key to Improving Productivity
8.8 Farm mechanisation helps increase productivity through timely and efficient use of other 
inputs and natural resources while at the same time reducing the cost of cultivation and the 
drudgery associated with various farm operations. Under the Sub Mission on Agricultural 
Mechanisation (SMAM), State Governments are being assisted in training and demonstrating 
agricultural machinery and helping farmers procure various farm machinery and equipment 
besides setting up Custom Hiring Centres (CHC). As of December 2022, 21628 CHCs and 467 
Hi-Tech hubs and 18306 farm machinery banks have been established. Increasing fragmentation 
of farm holdings (with the average size of household ownership holdings declining from 1.23 ha 
in 2005-06 to 1.10 ha in 2010-11 and further to 1.08 ha in 2015-16) requires machines that are 
viable and efficient for small farm holdings 
1
. 
Chemical-free India: Organic and Natural Farming 
8.9 Organic and natural farming provides chemical fertiliser and pesticide-free food grains 
and other crops, improves soil health and reduces environmental pollution. India has 44.3 lakh 
organic farmers, the highest in the world, and about 59.1 lakh ha area was brought under organic 
farming by 2021-22. Sikkim voluntarily adopted going organic, and the process of getting the 
total cultivable land of 58,168 hectares under organic farming commenced at ground level in 
1
Agriculture Statistics at a glance 2021