Agriculture and Food Management: Plenty of Upside Left If We Get It Right (2023-24) | Indian Economy for UPSC CSE PDF Download

 Page 1


CHAPTER
09
AGRICULTURE AND FOOD 
MANAGEMENT: PLENTY OF 
UPSIDE LEFT IF WE GET IT 
RIGHT
In the last five years, the agriculture sector has grown at an average growth rate of 
4.18 per cent per year. The country also has a comfortable stock of foodgrains, around 
40 per cent
1
 of which is distributed to two-thirds of the population free of cost. India 
exports more than 7 per cent
2
 of its food grains. The growth in the agriculture and allied 
sectors has contributed positively to the growth of the Indian economy. 
However, specific challenges remain. Low productivity levels, the impact of variability 
in weather, fragmented land holdings and inadequate marketing infrastructure affect 
agriculture performance. The chapter discusses these aspects while also focussing on 
government interventions in the crop, livestock, animal husbandry and fisheries to 
enhance investment and productivity, provide reasonable returns to farmers through 
the minimum support price (MSP), improve access to high-quality inputs and enable 
better extension services. Looking ahead, the digitalisation initiatives in Agriculture 
are expected to empower farmers through better decision-making tools. The chapter 
also discusses welfare schemes like PM Gareeb Kalyan Yojana (PMGKAY), the National 
Food Security Act (NFSA) and India’s food management programme, including food 
procurement and allocation. 
INTRODUCTION
9.1 The Indian agriculture sector provides livelihood support to about 42.3 per cent of the 
population and has a share of 18.2 per cent in the country’s GDP
3
 at current prices. The sector 
has been buoyant, which is evident from the fact that it has registered an average annual 
growth rate of 4.18
4
 per cent at constant prices over the last five years. Several initiatives and 
measures taken by the government in the form of assured remunerative prices through MSP 
improving access to institutional credit, enabling crop diversification, promoting digitisation, 
and mechanisation, encouraging adoption of sustainable practices through organic and natural 
farming, and focusing on productivity enhancement have had a positive impact on the sector. 
As per provisional estimates for 2023-24, the growth rate of the agriculture sector stood at 1.4 
1  Chand, R., Joshi, P., & Khadka, S. (2022). Indian agriculture towards 2030: pathways for enhancing farmers’ 
income, nutritional security and sustainable food and farm systems (p. 311). Springer Nature link available at 
https://link.springer.com/book/10.1007/978-981-19-0763-0
2  Ashok Gulati and Ritika (2022) Indian agriculture towards 2030: pathways for enhancing farmers’ income, nu-
tritional security and sustainable food and farm systems (p. 311). Springer Nature link available at https://link.
springer.com/book/10.1007/978-981-19-0763-0
3  National Statistical Office (NSO) M/o Statistics & Programme Implementation
4  ibid
Page 2


CHAPTER
09
AGRICULTURE AND FOOD 
MANAGEMENT: PLENTY OF 
UPSIDE LEFT IF WE GET IT 
RIGHT
In the last five years, the agriculture sector has grown at an average growth rate of 
4.18 per cent per year. The country also has a comfortable stock of foodgrains, around 
40 per cent
1
 of which is distributed to two-thirds of the population free of cost. India 
exports more than 7 per cent
2
 of its food grains. The growth in the agriculture and allied 
sectors has contributed positively to the growth of the Indian economy. 
However, specific challenges remain. Low productivity levels, the impact of variability 
in weather, fragmented land holdings and inadequate marketing infrastructure affect 
agriculture performance. The chapter discusses these aspects while also focussing on 
government interventions in the crop, livestock, animal husbandry and fisheries to 
enhance investment and productivity, provide reasonable returns to farmers through 
the minimum support price (MSP), improve access to high-quality inputs and enable 
better extension services. Looking ahead, the digitalisation initiatives in Agriculture 
are expected to empower farmers through better decision-making tools. The chapter 
also discusses welfare schemes like PM Gareeb Kalyan Yojana (PMGKAY), the National 
Food Security Act (NFSA) and India’s food management programme, including food 
procurement and allocation. 
INTRODUCTION
9.1 The Indian agriculture sector provides livelihood support to about 42.3 per cent of the 
population and has a share of 18.2 per cent in the country’s GDP
3
 at current prices. The sector 
has been buoyant, which is evident from the fact that it has registered an average annual 
growth rate of 4.18
4
 per cent at constant prices over the last five years. Several initiatives and 
measures taken by the government in the form of assured remunerative prices through MSP 
improving access to institutional credit, enabling crop diversification, promoting digitisation, 
and mechanisation, encouraging adoption of sustainable practices through organic and natural 
farming, and focusing on productivity enhancement have had a positive impact on the sector. 
As per provisional estimates for 2023-24, the growth rate of the agriculture sector stood at 1.4 
1  Chand, R., Joshi, P., & Khadka, S. (2022). Indian agriculture towards 2030: pathways for enhancing farmers’ 
income, nutritional security and sustainable food and farm systems (p. 311). Springer Nature link available at 
https://link.springer.com/book/10.1007/978-981-19-0763-0
2  Ashok Gulati and Ritika (2022) Indian agriculture towards 2030: pathways for enhancing farmers’ income, nu-
tritional security and sustainable food and farm systems (p. 311). Springer Nature link available at https://link.
springer.com/book/10.1007/978-981-19-0763-0
3  National Statistical Office (NSO) M/o Statistics & Programme Implementation
4  ibid
Economic Survey 2023-24
320
per cent,
5
 which is below 4.7 per cent in 2022-23
6
, mainly because of a drop in the foodgrain 
production due to delayed and poor monsoons caused by El Nino. The allied activities - livestock 
and fisheries have performed better than the traditional crops such as cereals
7
, which is evident 
from an increase in their share in agriculture Gross Value Added (GVA) at current prices from 
24.38 per cent and 4.44 per cent in 2014-15 to 30.23 per cent and 7.25 per cent in 2022-23
8
 
respectively. The share of the crops sector in Agriculture GVA at current prices in 2022-23
9
 was 
55.28 per cent as compared to 61.75 per cent in 2014-15.
9.2 While the country is a major agriculture producer, being the second largest producer in 
rice, wheat, cotton, among other crops, and the largest producer of milk, pulses and spices
10
, the 
crop yields in the country are much lower than the other major producers (Fig IX.2). That this 
is so despite the fact that the bulk of the government support goes to rice and wheat if a cause 
for reflection. Fragmented land holdings, low farm investment, lack of farm mechanisation, 
insufficient access to quality inputs, and inadequate marketing infrastructure leading to post-
harvest losses, dependency on rains and short growing seasons are a few reasons for the low 
yields.
Chart IX.1: Growth of agriculture and allied sectors
-4
-2
0
2
4
6
8
10
12
14
16
18
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
in per cent 
Crops Livestock fishing and aquaculture Agriculture
Source: National Statistical Office (NSO) M/o Statistics & PI
9.3 Several interventions are being undertaken to improve productivity in agriculture in 
line with the recommendations of the Doubling Farmers Income Report (DFI) 2016, which 
identified strategies to increase crop and livestock productivity, enchancing cropping intensity, 
diversify to high-value agriculture and provide remunerative prices on farmers’ produce. The 
decision in 2018-19 to fix MSP at one and half times the all-India weighted average cost of
5  ibid
6  ibid
7  Understanding the Farm Acts, Working Paper 1/2020, Niti Ayog, November 2020
8  Department of Animal Husbandry and Dairying (Ministry of Fisheries and Animal Husbandry and Dairying)
9 National Statistical Office (NSO) M/o Statistics & Programme Implementation
10   https://www.fao.org/india/fao-in-india/india-at-a-glance/en/
Page 3


CHAPTER
09
AGRICULTURE AND FOOD 
MANAGEMENT: PLENTY OF 
UPSIDE LEFT IF WE GET IT 
RIGHT
In the last five years, the agriculture sector has grown at an average growth rate of 
4.18 per cent per year. The country also has a comfortable stock of foodgrains, around 
40 per cent
1
 of which is distributed to two-thirds of the population free of cost. India 
exports more than 7 per cent
2
 of its food grains. The growth in the agriculture and allied 
sectors has contributed positively to the growth of the Indian economy. 
However, specific challenges remain. Low productivity levels, the impact of variability 
in weather, fragmented land holdings and inadequate marketing infrastructure affect 
agriculture performance. The chapter discusses these aspects while also focussing on 
government interventions in the crop, livestock, animal husbandry and fisheries to 
enhance investment and productivity, provide reasonable returns to farmers through 
the minimum support price (MSP), improve access to high-quality inputs and enable 
better extension services. Looking ahead, the digitalisation initiatives in Agriculture 
are expected to empower farmers through better decision-making tools. The chapter 
also discusses welfare schemes like PM Gareeb Kalyan Yojana (PMGKAY), the National 
Food Security Act (NFSA) and India’s food management programme, including food 
procurement and allocation. 
INTRODUCTION
9.1 The Indian agriculture sector provides livelihood support to about 42.3 per cent of the 
population and has a share of 18.2 per cent in the country’s GDP
3
 at current prices. The sector 
has been buoyant, which is evident from the fact that it has registered an average annual 
growth rate of 4.18
4
 per cent at constant prices over the last five years. Several initiatives and 
measures taken by the government in the form of assured remunerative prices through MSP 
improving access to institutional credit, enabling crop diversification, promoting digitisation, 
and mechanisation, encouraging adoption of sustainable practices through organic and natural 
farming, and focusing on productivity enhancement have had a positive impact on the sector. 
As per provisional estimates for 2023-24, the growth rate of the agriculture sector stood at 1.4 
1  Chand, R., Joshi, P., & Khadka, S. (2022). Indian agriculture towards 2030: pathways for enhancing farmers’ 
income, nutritional security and sustainable food and farm systems (p. 311). Springer Nature link available at 
https://link.springer.com/book/10.1007/978-981-19-0763-0
2  Ashok Gulati and Ritika (2022) Indian agriculture towards 2030: pathways for enhancing farmers’ income, nu-
tritional security and sustainable food and farm systems (p. 311). Springer Nature link available at https://link.
springer.com/book/10.1007/978-981-19-0763-0
3  National Statistical Office (NSO) M/o Statistics & Programme Implementation
4  ibid
Economic Survey 2023-24
320
per cent,
5
 which is below 4.7 per cent in 2022-23
6
, mainly because of a drop in the foodgrain 
production due to delayed and poor monsoons caused by El Nino. The allied activities - livestock 
and fisheries have performed better than the traditional crops such as cereals
7
, which is evident 
from an increase in their share in agriculture Gross Value Added (GVA) at current prices from 
24.38 per cent and 4.44 per cent in 2014-15 to 30.23 per cent and 7.25 per cent in 2022-23
8
 
respectively. The share of the crops sector in Agriculture GVA at current prices in 2022-23
9
 was 
55.28 per cent as compared to 61.75 per cent in 2014-15.
9.2 While the country is a major agriculture producer, being the second largest producer in 
rice, wheat, cotton, among other crops, and the largest producer of milk, pulses and spices
10
, the 
crop yields in the country are much lower than the other major producers (Fig IX.2). That this 
is so despite the fact that the bulk of the government support goes to rice and wheat if a cause 
for reflection. Fragmented land holdings, low farm investment, lack of farm mechanisation, 
insufficient access to quality inputs, and inadequate marketing infrastructure leading to post-
harvest losses, dependency on rains and short growing seasons are a few reasons for the low 
yields.
Chart IX.1: Growth of agriculture and allied sectors
-4
-2
0
2
4
6
8
10
12
14
16
18
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
in per cent 
Crops Livestock fishing and aquaculture Agriculture
Source: National Statistical Office (NSO) M/o Statistics & PI
9.3 Several interventions are being undertaken to improve productivity in agriculture in 
line with the recommendations of the Doubling Farmers Income Report (DFI) 2016, which 
identified strategies to increase crop and livestock productivity, enchancing cropping intensity, 
diversify to high-value agriculture and provide remunerative prices on farmers’ produce. The 
decision in 2018-19 to fix MSP at one and half times the all-India weighted average cost of
5  ibid
6  ibid
7  Understanding the Farm Acts, Working Paper 1/2020, Niti Ayog, November 2020
8  Department of Animal Husbandry and Dairying (Ministry of Fisheries and Animal Husbandry and Dairying)
9 National Statistical Office (NSO) M/o Statistics & Programme Implementation
10   https://www.fao.org/india/fao-in-india/india-at-a-glance/en/
Agriculture and Food Management
321
Chart IX.2: International productivity comparison for major kharif crops (2022)
0
2000
4000
6000
8000
10000
12000
Paddy Maize Sorghum
(Jowar)
Pigeon Pea
(Tur)
Groundnut Soybean Sunflower
kg/ha 
All-India Average World Highest
Source: Price Policy Report for Kharif Crops 2024-25
production was a step towards providing assured remunerative prices to farmers. Other 
interventions include income support through Pradhan Mantri Kisan Samman Nidhi (PM-
KISAN), which gives the farmer a direct financial benefit of ?6000/- per year. Promotion of 
greater efficiency in the use of inputs and sustainable production methods through Per Drop 
More Crop (PDMC), a micro irrigation scheme and the actions under the National Mission on 
Sustainable Agriculture (NMSA), including the use of alternative and organic fertilisers are a 
few examples on other initiatives being undertaken to improve productivity and sustainability. 
In addition, digital initiatives such as the Digital Agriculture Mission and e-National Agriculture 
Market (e-NAM) have also been taken up to facilitate the adoption of smart agriculture 
technologies, with the latter allowing better price discovery.  
9.4 The roles, animal husbandry and fisheries play in improving farmers’ income, especially 
when agriculture holdings are reduced, is duly recognised.  The scheme such as the Rashtriya 
Gokul Mission(RGM), National Digital Livestock Mission
4
 (NDLM), and National Programme 
for Dairy Development (NPDD) include interventions to improve quality, enable access to the 
organised markets and the development of indigenous breeds. The fisheries sector has been 
supported through programmes for improving productivity, access to institutional credit, and 
infrastructure development through the Fisheries Infrastructure Development Fund (FIDF) 
with a total fund size of ?7.52 Thousand Crore. Similarly, Pradhan Mantri Matsya Sampada 
Yojana (PMMSY) introduced in May 2020 aimed at strengthening fisheries infrastructure, 
enable technology infusion and promote optimal water management. These interventions in 
fisheries sector have resulted in increasing fish production by an average annual growth of 7.4 
per cent in 2022-23 from 2020-21
11
. 
11  Department of Fisheries
Page 4


CHAPTER
09
AGRICULTURE AND FOOD 
MANAGEMENT: PLENTY OF 
UPSIDE LEFT IF WE GET IT 
RIGHT
In the last five years, the agriculture sector has grown at an average growth rate of 
4.18 per cent per year. The country also has a comfortable stock of foodgrains, around 
40 per cent
1
 of which is distributed to two-thirds of the population free of cost. India 
exports more than 7 per cent
2
 of its food grains. The growth in the agriculture and allied 
sectors has contributed positively to the growth of the Indian economy. 
However, specific challenges remain. Low productivity levels, the impact of variability 
in weather, fragmented land holdings and inadequate marketing infrastructure affect 
agriculture performance. The chapter discusses these aspects while also focussing on 
government interventions in the crop, livestock, animal husbandry and fisheries to 
enhance investment and productivity, provide reasonable returns to farmers through 
the minimum support price (MSP), improve access to high-quality inputs and enable 
better extension services. Looking ahead, the digitalisation initiatives in Agriculture 
are expected to empower farmers through better decision-making tools. The chapter 
also discusses welfare schemes like PM Gareeb Kalyan Yojana (PMGKAY), the National 
Food Security Act (NFSA) and India’s food management programme, including food 
procurement and allocation. 
INTRODUCTION
9.1 The Indian agriculture sector provides livelihood support to about 42.3 per cent of the 
population and has a share of 18.2 per cent in the country’s GDP
3
 at current prices. The sector 
has been buoyant, which is evident from the fact that it has registered an average annual 
growth rate of 4.18
4
 per cent at constant prices over the last five years. Several initiatives and 
measures taken by the government in the form of assured remunerative prices through MSP 
improving access to institutional credit, enabling crop diversification, promoting digitisation, 
and mechanisation, encouraging adoption of sustainable practices through organic and natural 
farming, and focusing on productivity enhancement have had a positive impact on the sector. 
As per provisional estimates for 2023-24, the growth rate of the agriculture sector stood at 1.4 
1  Chand, R., Joshi, P., & Khadka, S. (2022). Indian agriculture towards 2030: pathways for enhancing farmers’ 
income, nutritional security and sustainable food and farm systems (p. 311). Springer Nature link available at 
https://link.springer.com/book/10.1007/978-981-19-0763-0
2  Ashok Gulati and Ritika (2022) Indian agriculture towards 2030: pathways for enhancing farmers’ income, nu-
tritional security and sustainable food and farm systems (p. 311). Springer Nature link available at https://link.
springer.com/book/10.1007/978-981-19-0763-0
3  National Statistical Office (NSO) M/o Statistics & Programme Implementation
4  ibid
Economic Survey 2023-24
320
per cent,
5
 which is below 4.7 per cent in 2022-23
6
, mainly because of a drop in the foodgrain 
production due to delayed and poor monsoons caused by El Nino. The allied activities - livestock 
and fisheries have performed better than the traditional crops such as cereals
7
, which is evident 
from an increase in their share in agriculture Gross Value Added (GVA) at current prices from 
24.38 per cent and 4.44 per cent in 2014-15 to 30.23 per cent and 7.25 per cent in 2022-23
8
 
respectively. The share of the crops sector in Agriculture GVA at current prices in 2022-23
9
 was 
55.28 per cent as compared to 61.75 per cent in 2014-15.
9.2 While the country is a major agriculture producer, being the second largest producer in 
rice, wheat, cotton, among other crops, and the largest producer of milk, pulses and spices
10
, the 
crop yields in the country are much lower than the other major producers (Fig IX.2). That this 
is so despite the fact that the bulk of the government support goes to rice and wheat if a cause 
for reflection. Fragmented land holdings, low farm investment, lack of farm mechanisation, 
insufficient access to quality inputs, and inadequate marketing infrastructure leading to post-
harvest losses, dependency on rains and short growing seasons are a few reasons for the low 
yields.
Chart IX.1: Growth of agriculture and allied sectors
-4
-2
0
2
4
6
8
10
12
14
16
18
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
in per cent 
Crops Livestock fishing and aquaculture Agriculture
Source: National Statistical Office (NSO) M/o Statistics & PI
9.3 Several interventions are being undertaken to improve productivity in agriculture in 
line with the recommendations of the Doubling Farmers Income Report (DFI) 2016, which 
identified strategies to increase crop and livestock productivity, enchancing cropping intensity, 
diversify to high-value agriculture and provide remunerative prices on farmers’ produce. The 
decision in 2018-19 to fix MSP at one and half times the all-India weighted average cost of
5  ibid
6  ibid
7  Understanding the Farm Acts, Working Paper 1/2020, Niti Ayog, November 2020
8  Department of Animal Husbandry and Dairying (Ministry of Fisheries and Animal Husbandry and Dairying)
9 National Statistical Office (NSO) M/o Statistics & Programme Implementation
10   https://www.fao.org/india/fao-in-india/india-at-a-glance/en/
Agriculture and Food Management
321
Chart IX.2: International productivity comparison for major kharif crops (2022)
0
2000
4000
6000
8000
10000
12000
Paddy Maize Sorghum
(Jowar)
Pigeon Pea
(Tur)
Groundnut Soybean Sunflower
kg/ha 
All-India Average World Highest
Source: Price Policy Report for Kharif Crops 2024-25
production was a step towards providing assured remunerative prices to farmers. Other 
interventions include income support through Pradhan Mantri Kisan Samman Nidhi (PM-
KISAN), which gives the farmer a direct financial benefit of ?6000/- per year. Promotion of 
greater efficiency in the use of inputs and sustainable production methods through Per Drop 
More Crop (PDMC), a micro irrigation scheme and the actions under the National Mission on 
Sustainable Agriculture (NMSA), including the use of alternative and organic fertilisers are a 
few examples on other initiatives being undertaken to improve productivity and sustainability. 
In addition, digital initiatives such as the Digital Agriculture Mission and e-National Agriculture 
Market (e-NAM) have also been taken up to facilitate the adoption of smart agriculture 
technologies, with the latter allowing better price discovery.  
9.4 The roles, animal husbandry and fisheries play in improving farmers’ income, especially 
when agriculture holdings are reduced, is duly recognised.  The scheme such as the Rashtriya 
Gokul Mission(RGM), National Digital Livestock Mission
4
 (NDLM), and National Programme 
for Dairy Development (NPDD) include interventions to improve quality, enable access to the 
organised markets and the development of indigenous breeds. The fisheries sector has been 
supported through programmes for improving productivity, access to institutional credit, and 
infrastructure development through the Fisheries Infrastructure Development Fund (FIDF) 
with a total fund size of ?7.52 Thousand Crore. Similarly, Pradhan Mantri Matsya Sampada 
Yojana (PMMSY) introduced in May 2020 aimed at strengthening fisheries infrastructure, 
enable technology infusion and promote optimal water management. These interventions in 
fisheries sector have resulted in increasing fish production by an average annual growth of 7.4 
per cent in 2022-23 from 2020-21
11
. 
11  Department of Fisheries
Economic Survey 2023-24
322
AGRICULTURE PRODUCTION: PERFORMANCE AND 
PROMOTING CROP DIVERSIFICATION
9.5 In 2022-23, foodgrain production hit an all-time high of 329.7 million tonnes, and 
oilseeds production reached 41.4 million tonnes. In 2023-24, food grain production is slightly 
lower at 328.8 million tonnes
 12
, primarily because of poor and delayed monsoons. Production 
of other crops such as Shree Anna/nutri cereals and total oilseeds marked a slight increase. 
The nutri-cereals increased marginally by 1 per cent from the previous year, as did Tur, with a 
production estimated at 33.85 lakh tonnes (LT) as compared to last year’s production of 33.12 
LT. With the harvesting still in progress, there may be further changes in successive estimates.
. 
The production of lentil (Masur) is estimated at 17.54 LT, which is higher by 1.95 LT than the 
previous year’s production of 15.59 LT.
Chart IX.3: Production of major crops
2600
2700
2800
2900
3000
3100
3200
3300
3400
0
50
100
150
200
250
300
350
400
450
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24^
lakh tonnes(foodgrains) 
lakh tonnes 
Oilseeds Shree Anna Pulses Foodgrains
^As per third advance estimates
Source: Ministry of Agriculture and Farmers Welfare
9.6 In recent years, the Government has promoted crop diversification to address sustainability 
challenges and shift production from water-intensive crops to others such as pulses, oilseeds, 
and Nutri-cereals/ Shree Anna. The government is implementing the Crop Diversification 
Programme (CDP) under the Rashtriya Krishi Vikas yoajna (RKVY) to demonstrate and 
promote better production technologies of alternate crops for the diversion of paddy 
cultivation and to restore soil fertility through the cultivation of legumes. The National Food 
Security Mission (NFSM) is implemented across the country to enhance the production and 
productivity of foodgrain and commercial crops through the demonstration of crop production 
and protection technologies, access to high-yielding varieties, integrated nutrient and pest 
management techniques, efficient water saving devices, and capacity building of farmers etc. 
The government’s push towards crop diversification is facilitated through a higher increase in 
12  Third Advance estimates, Ministry of Agriculture accessed at https://desagri.gov.in/wpcontent/up-
loads/2024/06/English.pdf
Page 5


CHAPTER
09
AGRICULTURE AND FOOD 
MANAGEMENT: PLENTY OF 
UPSIDE LEFT IF WE GET IT 
RIGHT
In the last five years, the agriculture sector has grown at an average growth rate of 
4.18 per cent per year. The country also has a comfortable stock of foodgrains, around 
40 per cent
1
 of which is distributed to two-thirds of the population free of cost. India 
exports more than 7 per cent
2
 of its food grains. The growth in the agriculture and allied 
sectors has contributed positively to the growth of the Indian economy. 
However, specific challenges remain. Low productivity levels, the impact of variability 
in weather, fragmented land holdings and inadequate marketing infrastructure affect 
agriculture performance. The chapter discusses these aspects while also focussing on 
government interventions in the crop, livestock, animal husbandry and fisheries to 
enhance investment and productivity, provide reasonable returns to farmers through 
the minimum support price (MSP), improve access to high-quality inputs and enable 
better extension services. Looking ahead, the digitalisation initiatives in Agriculture 
are expected to empower farmers through better decision-making tools. The chapter 
also discusses welfare schemes like PM Gareeb Kalyan Yojana (PMGKAY), the National 
Food Security Act (NFSA) and India’s food management programme, including food 
procurement and allocation. 
INTRODUCTION
9.1 The Indian agriculture sector provides livelihood support to about 42.3 per cent of the 
population and has a share of 18.2 per cent in the country’s GDP
3
 at current prices. The sector 
has been buoyant, which is evident from the fact that it has registered an average annual 
growth rate of 4.18
4
 per cent at constant prices over the last five years. Several initiatives and 
measures taken by the government in the form of assured remunerative prices through MSP 
improving access to institutional credit, enabling crop diversification, promoting digitisation, 
and mechanisation, encouraging adoption of sustainable practices through organic and natural 
farming, and focusing on productivity enhancement have had a positive impact on the sector. 
As per provisional estimates for 2023-24, the growth rate of the agriculture sector stood at 1.4 
1  Chand, R., Joshi, P., & Khadka, S. (2022). Indian agriculture towards 2030: pathways for enhancing farmers’ 
income, nutritional security and sustainable food and farm systems (p. 311). Springer Nature link available at 
https://link.springer.com/book/10.1007/978-981-19-0763-0
2  Ashok Gulati and Ritika (2022) Indian agriculture towards 2030: pathways for enhancing farmers’ income, nu-
tritional security and sustainable food and farm systems (p. 311). Springer Nature link available at https://link.
springer.com/book/10.1007/978-981-19-0763-0
3  National Statistical Office (NSO) M/o Statistics & Programme Implementation
4  ibid
Economic Survey 2023-24
320
per cent,
5
 which is below 4.7 per cent in 2022-23
6
, mainly because of a drop in the foodgrain 
production due to delayed and poor monsoons caused by El Nino. The allied activities - livestock 
and fisheries have performed better than the traditional crops such as cereals
7
, which is evident 
from an increase in their share in agriculture Gross Value Added (GVA) at current prices from 
24.38 per cent and 4.44 per cent in 2014-15 to 30.23 per cent and 7.25 per cent in 2022-23
8
 
respectively. The share of the crops sector in Agriculture GVA at current prices in 2022-23
9
 was 
55.28 per cent as compared to 61.75 per cent in 2014-15.
9.2 While the country is a major agriculture producer, being the second largest producer in 
rice, wheat, cotton, among other crops, and the largest producer of milk, pulses and spices
10
, the 
crop yields in the country are much lower than the other major producers (Fig IX.2). That this 
is so despite the fact that the bulk of the government support goes to rice and wheat if a cause 
for reflection. Fragmented land holdings, low farm investment, lack of farm mechanisation, 
insufficient access to quality inputs, and inadequate marketing infrastructure leading to post-
harvest losses, dependency on rains and short growing seasons are a few reasons for the low 
yields.
Chart IX.1: Growth of agriculture and allied sectors
-4
-2
0
2
4
6
8
10
12
14
16
18
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
in per cent 
Crops Livestock fishing and aquaculture Agriculture
Source: National Statistical Office (NSO) M/o Statistics & PI
9.3 Several interventions are being undertaken to improve productivity in agriculture in 
line with the recommendations of the Doubling Farmers Income Report (DFI) 2016, which 
identified strategies to increase crop and livestock productivity, enchancing cropping intensity, 
diversify to high-value agriculture and provide remunerative prices on farmers’ produce. The 
decision in 2018-19 to fix MSP at one and half times the all-India weighted average cost of
5  ibid
6  ibid
7  Understanding the Farm Acts, Working Paper 1/2020, Niti Ayog, November 2020
8  Department of Animal Husbandry and Dairying (Ministry of Fisheries and Animal Husbandry and Dairying)
9 National Statistical Office (NSO) M/o Statistics & Programme Implementation
10   https://www.fao.org/india/fao-in-india/india-at-a-glance/en/
Agriculture and Food Management
321
Chart IX.2: International productivity comparison for major kharif crops (2022)
0
2000
4000
6000
8000
10000
12000
Paddy Maize Sorghum
(Jowar)
Pigeon Pea
(Tur)
Groundnut Soybean Sunflower
kg/ha 
All-India Average World Highest
Source: Price Policy Report for Kharif Crops 2024-25
production was a step towards providing assured remunerative prices to farmers. Other 
interventions include income support through Pradhan Mantri Kisan Samman Nidhi (PM-
KISAN), which gives the farmer a direct financial benefit of ?6000/- per year. Promotion of 
greater efficiency in the use of inputs and sustainable production methods through Per Drop 
More Crop (PDMC), a micro irrigation scheme and the actions under the National Mission on 
Sustainable Agriculture (NMSA), including the use of alternative and organic fertilisers are a 
few examples on other initiatives being undertaken to improve productivity and sustainability. 
In addition, digital initiatives such as the Digital Agriculture Mission and e-National Agriculture 
Market (e-NAM) have also been taken up to facilitate the adoption of smart agriculture 
technologies, with the latter allowing better price discovery.  
9.4 The roles, animal husbandry and fisheries play in improving farmers’ income, especially 
when agriculture holdings are reduced, is duly recognised.  The scheme such as the Rashtriya 
Gokul Mission(RGM), National Digital Livestock Mission
4
 (NDLM), and National Programme 
for Dairy Development (NPDD) include interventions to improve quality, enable access to the 
organised markets and the development of indigenous breeds. The fisheries sector has been 
supported through programmes for improving productivity, access to institutional credit, and 
infrastructure development through the Fisheries Infrastructure Development Fund (FIDF) 
with a total fund size of ?7.52 Thousand Crore. Similarly, Pradhan Mantri Matsya Sampada 
Yojana (PMMSY) introduced in May 2020 aimed at strengthening fisheries infrastructure, 
enable technology infusion and promote optimal water management. These interventions in 
fisheries sector have resulted in increasing fish production by an average annual growth of 7.4 
per cent in 2022-23 from 2020-21
11
. 
11  Department of Fisheries
Economic Survey 2023-24
322
AGRICULTURE PRODUCTION: PERFORMANCE AND 
PROMOTING CROP DIVERSIFICATION
9.5 In 2022-23, foodgrain production hit an all-time high of 329.7 million tonnes, and 
oilseeds production reached 41.4 million tonnes. In 2023-24, food grain production is slightly 
lower at 328.8 million tonnes
 12
, primarily because of poor and delayed monsoons. Production 
of other crops such as Shree Anna/nutri cereals and total oilseeds marked a slight increase. 
The nutri-cereals increased marginally by 1 per cent from the previous year, as did Tur, with a 
production estimated at 33.85 lakh tonnes (LT) as compared to last year’s production of 33.12 
LT. With the harvesting still in progress, there may be further changes in successive estimates.
. 
The production of lentil (Masur) is estimated at 17.54 LT, which is higher by 1.95 LT than the 
previous year’s production of 15.59 LT.
Chart IX.3: Production of major crops
2600
2700
2800
2900
3000
3100
3200
3300
3400
0
50
100
150
200
250
300
350
400
450
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24^
lakh tonnes(foodgrains) 
lakh tonnes 
Oilseeds Shree Anna Pulses Foodgrains
^As per third advance estimates
Source: Ministry of Agriculture and Farmers Welfare
9.6 In recent years, the Government has promoted crop diversification to address sustainability 
challenges and shift production from water-intensive crops to others such as pulses, oilseeds, 
and Nutri-cereals/ Shree Anna. The government is implementing the Crop Diversification 
Programme (CDP) under the Rashtriya Krishi Vikas yoajna (RKVY) to demonstrate and 
promote better production technologies of alternate crops for the diversion of paddy 
cultivation and to restore soil fertility through the cultivation of legumes. The National Food 
Security Mission (NFSM) is implemented across the country to enhance the production and 
productivity of foodgrain and commercial crops through the demonstration of crop production 
and protection technologies, access to high-yielding varieties, integrated nutrient and pest 
management techniques, efficient water saving devices, and capacity building of farmers etc. 
The government’s push towards crop diversification is facilitated through a higher increase in 
12  Third Advance estimates, Ministry of Agriculture accessed at https://desagri.gov.in/wpcontent/up-
loads/2024/06/English.pdf
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323
MSP over the average cost of production for oilseeds and pulses with lentils (masur), getting 
the highest among pulses at 89 per cent over the cost of production, followed by tur at 58 per 
cent in 2023-24 while MSP for coarse cereal/millets such as bajra was 82 per cent over the cost 
of production. The increase in MSP for safflower and soybean (yellow) was 52 per cent over 
the cost of production in 2023-24. This needs to be persisted with to address the imbalance 
between the production of rice and wheat and the production of pulses and oilseeds. 
9.7 The Government has been implementing a National Food Security Mission- Oilseeds & 
Oil Palm (NFSM-OS&OP), from 2018-19 to augment the availability of vegetable oils through 
improved productivity and increase in acreage under cultivation. The total area coverage of 
all oilseeds has expanded significantly, increasing from 25.60 million hectares in 2014-15 to 
30.08 million hectares in 2023-24 (17.5 per cent growth). The domestic availability of edible 
oil has risen from 86.30 lakh tonnes in 2015-16 to 121.33 lakh tonnes in 2023-24. This has 
reduced the percentage share of imported edible oil, from 63.2 per cent in 2015-16 to 57.3 per 
cent in 2022-23, despite rising domestic demand and consumption patterns. A remunerative 
minimum support price for rapeseed and mustard (which was at 98 per cent over cost in 2022-
23) is also providing the incentive to farmers to diversify production
13
. 
Promoting Investment and Access to credit in Agriculture and allied 
sectors 
9.8 Gross capital formation (GCF) refers to the total investment in physical assets over a 
specific period. It includes new and existing fixed assets, such as machinery, buildings, land 
improvements, equipment purchases, and inventory changes
14
. This metric is a crucial indicator 
of investment in modernising agriculture, enhancing productivity, and ensuring sustainability. 
The development of infrastructure, particularly post-harvest facilities, can significantly reduce 
waste, preserve produce quality, and increase farmers’ income. The GCF of the agriculture 
sector and the share of GCF in the agriculture and allied sectors as a percentage of  Gross 
Value Added (GVA) has been growing steadily, mainly due to increased public investment. The 
GCF of the agriculture sector grew at the rate of 19.04 per cent in 2022-23, and the GCF as a 
percentage of GVA rose from 17.7 per cent in 2021-22 to 19.9 per cent in 2022-23, suggesting 
an increase in investment in agriculture
15
. The average annual growth in GCF from 2016-17 to 
2022-23 was 9.70 per cent
16
. 
9.9 However, despite the increasing trend in GCF, there is a need to further boost agriculture 
investment, especially in the context of doubling farmers’ income. The DFI 2016 report 
indicated that to double farmers’ income over the period of 2016-17 to 2022-23, income would 
need to grow at an annual rate of 10.4 per cent in the farm sector, which in turn would require 
an annual growth rate in agriculture investment of 12.5 per cent
17
. One significant challenge 
13  Ministry of Agriculture
14  World Bank (https://databank.worldbank.org/metadataglossary/world-development indicators/series/
NE.GDI.TOTL.ZS)
15  Investments in agriculture mainly refers to land, input and production related investments. It does not include 
investments in markets, storage, transport, grading and other post-harvest infrastructure. 
16  Survey calculations based on data from NSO
17  Volume XIV of Doubling Farmers income Report 2018 (https://foodprocessingindia.gov.in/uploads/
publication/MoFPI1609496430agriculture2.pdf)