Page 1
CHAPTER
07
(Who have the shade of cornful crest
Under their umbra umbrella rest.)
—Thiruvalluvar
The resilience of India’s agriculture sector can be seen from the fact that despite the
COVID-19 pandemic, its performance in output was strong. About 54.6 per cent of the
total workforce in the country is still engaged in agricultural and allied sector activities
(Census 2011) which accounts for approximately 17.8 per cent of the country’s Gross
Value Added (GVA) for the year 2019-20 (at current prices). While the difficulties created
by COVID induced lockdowns adversely affected the performance of the non-agricultural
sectors, the agriculture sector came up with a robust growth rate of 3.4 per cent at
constant prices during 2020-21 (first advance estimates). The sector has got renewed
thrust due to various measures on credit, market reforms and food processing under the
Atma Nirbhar Bharat announcements. Various interventions of the Government for the
development of allied sectors including animal husbandry, dairying and fisheries exhibit
its resolve towards tapping the potential of allied sectors to further enhance farm welfare.
In addition to various measures aimed at increasing productivity and improving marketing
of agricultural produce, the Government also carries out a large food management
programme with a significant financial implication in terms of food subsidy. Under the
Pradhan Mantri Garib Kalyan Anna Yojana, 80.96 crores beneficiaries were provided
additional foodgrains, i.e. above the NFSA mandated requirements, of 5 kg per person
per month free of cost till November, 2020. Over 200 LMT of foodgrains were provided
amounting to a fiscal outgo of over ` 75000 Crores. Also, under Atma Nirbhar Bharat
Package, 5 kg per person per month was distributed for four months (May to August) to
benefit approximately 8 crores migrants who are not covered under NFSA or state ration
card entailing subsidy of ` 3109 crores approximately.
Agriculture & Food Management
INTRODUCTION
7.1 COVID-19 pandemic has influenced the lives of people across the globe and India is no
exception to that. The farming activities also experie nced the impact of this pandemic as the
COVID induced lockdowns influenced the movement of farm inputs including farm machinery
from one location to other . The national lockdown coincided with the commencement of the
harvesting season for the Rabi crops creating further adversity for the sector . Migration of
agricultural labourers to their native places during the lockdown created a shortage of farm
Page 2
CHAPTER
07
(Who have the shade of cornful crest
Under their umbra umbrella rest.)
—Thiruvalluvar
The resilience of India’s agriculture sector can be seen from the fact that despite the
COVID-19 pandemic, its performance in output was strong. About 54.6 per cent of the
total workforce in the country is still engaged in agricultural and allied sector activities
(Census 2011) which accounts for approximately 17.8 per cent of the country’s Gross
Value Added (GVA) for the year 2019-20 (at current prices). While the difficulties created
by COVID induced lockdowns adversely affected the performance of the non-agricultural
sectors, the agriculture sector came up with a robust growth rate of 3.4 per cent at
constant prices during 2020-21 (first advance estimates). The sector has got renewed
thrust due to various measures on credit, market reforms and food processing under the
Atma Nirbhar Bharat announcements. Various interventions of the Government for the
development of allied sectors including animal husbandry, dairying and fisheries exhibit
its resolve towards tapping the potential of allied sectors to further enhance farm welfare.
In addition to various measures aimed at increasing productivity and improving marketing
of agricultural produce, the Government also carries out a large food management
programme with a significant financial implication in terms of food subsidy. Under the
Pradhan Mantri Garib Kalyan Anna Yojana, 80.96 crores beneficiaries were provided
additional foodgrains, i.e. above the NFSA mandated requirements, of 5 kg per person
per month free of cost till November, 2020. Over 200 LMT of foodgrains were provided
amounting to a fiscal outgo of over ` 75000 Crores. Also, under Atma Nirbhar Bharat
Package, 5 kg per person per month was distributed for four months (May to August) to
benefit approximately 8 crores migrants who are not covered under NFSA or state ration
card entailing subsidy of ` 3109 crores approximately.
Agriculture & Food Management
INTRODUCTION
7.1 COVID-19 pandemic has influenced the lives of people across the globe and India is no
exception to that. The farming activities also experie nced the impact of this pandemic as the
COVID induced lockdowns influenced the movement of farm inputs including farm machinery
from one location to other . The national lockdown coincided with the commencement of the
harvesting season for the Rabi crops creating further adversity for the sector . Migration of
agricultural labourers to their native places during the lockdown created a shortage of farm
231 Agriculture & Food Management
labourers. India’ s agricultural system demonstrated its resilience amid such adversities. The
agriculture and allied sectors were the sole bright spot amid the slide in performance of other
sectors, clock ing a growth rate of 3.4 per cent at constant prices during 2020-21. Against all
adversities due to COVID-19, continuous supply of agriculture commodities, especially staples
like rice, wheat, pulses and vegetables, has been maintained thereby enabling food security . In
order to further strengthen and support the agricultural sector , several initiatives have been taken
by the Government of India under the Atma Nirbhar Bharat Abhiyan (Box 1).
Box 1: Major Announcements for Agriculture and Food Management
under the Atma Nirbhar Bharat Abhiyan
Announcement Objectives
` 1 lakh crores Agri Infrastructure
Fund
Financing will be provided for funding agriculture
infrastructure projects at farm-gate & at aggregation
points and for financially viable post-harvest management
infrastructure.
` 10,000 crores scheme for
Formalisation of Micro Food
Enterprises (MFE)
Aiding 2 lakh MFEs who need technical upgradation to
attain FSSAI food standards, build brands and support
marketing.
` 20,000 crores for fisherman
through Pradhan Mantri Matsya
Sampada Y ojana (PMMSY)
It aims at integrated, sustainable and inclusive development
of marine and inland fisheries by developing infrastructure
such as fishing harbours, cold chain, markets, etc.
National Animal Disease Control
Programme
It tar gets Foot and Mouth Disease (FMD) and Brucellosis
by ensuring 100 per cent vaccination of cattle, buf falo,
sheep, goat and pig population.
Animal Husbandry Infrastructure
Development Fund - ` 15,000
crores
It is to support private investment in dairy processing,
enable value addition and improved cattle feed
infrastructure.
From ‘T OP’ to T OT AL “Operation Greens” run by Ministry of Food Processing
Industries (MOFPI) to be extended from tomatoes, onion
and potatoes to ALL fruit and vegetables.
Reforms in Essential Commodities
Act, Agriculture Marketing and
Agriculture Produce Pricing and
Quality Assurance
These legislat ive reforms seek to remove agricultural
commodities such as cereals, pulses, oilseeds etc. from
the list of essential commodities and aim to reform
agricultural marketing.
PM Garib Kalyan Ann Y ojana The scheme aimed at ensuring food and nutritional security
to around 80 crores ration card holders who were af fected
due to the COVID-19 induced national lockdown.
One Nation One Ration Card
Scheme
This scheme will enable migrant workers and their family
members to access PDS benefits from any fair price shop
in the country .
Page 3
CHAPTER
07
(Who have the shade of cornful crest
Under their umbra umbrella rest.)
—Thiruvalluvar
The resilience of India’s agriculture sector can be seen from the fact that despite the
COVID-19 pandemic, its performance in output was strong. About 54.6 per cent of the
total workforce in the country is still engaged in agricultural and allied sector activities
(Census 2011) which accounts for approximately 17.8 per cent of the country’s Gross
Value Added (GVA) for the year 2019-20 (at current prices). While the difficulties created
by COVID induced lockdowns adversely affected the performance of the non-agricultural
sectors, the agriculture sector came up with a robust growth rate of 3.4 per cent at
constant prices during 2020-21 (first advance estimates). The sector has got renewed
thrust due to various measures on credit, market reforms and food processing under the
Atma Nirbhar Bharat announcements. Various interventions of the Government for the
development of allied sectors including animal husbandry, dairying and fisheries exhibit
its resolve towards tapping the potential of allied sectors to further enhance farm welfare.
In addition to various measures aimed at increasing productivity and improving marketing
of agricultural produce, the Government also carries out a large food management
programme with a significant financial implication in terms of food subsidy. Under the
Pradhan Mantri Garib Kalyan Anna Yojana, 80.96 crores beneficiaries were provided
additional foodgrains, i.e. above the NFSA mandated requirements, of 5 kg per person
per month free of cost till November, 2020. Over 200 LMT of foodgrains were provided
amounting to a fiscal outgo of over ` 75000 Crores. Also, under Atma Nirbhar Bharat
Package, 5 kg per person per month was distributed for four months (May to August) to
benefit approximately 8 crores migrants who are not covered under NFSA or state ration
card entailing subsidy of ` 3109 crores approximately.
Agriculture & Food Management
INTRODUCTION
7.1 COVID-19 pandemic has influenced the lives of people across the globe and India is no
exception to that. The farming activities also experie nced the impact of this pandemic as the
COVID induced lockdowns influenced the movement of farm inputs including farm machinery
from one location to other . The national lockdown coincided with the commencement of the
harvesting season for the Rabi crops creating further adversity for the sector . Migration of
agricultural labourers to their native places during the lockdown created a shortage of farm
231 Agriculture & Food Management
labourers. India’ s agricultural system demonstrated its resilience amid such adversities. The
agriculture and allied sectors were the sole bright spot amid the slide in performance of other
sectors, clock ing a growth rate of 3.4 per cent at constant prices during 2020-21. Against all
adversities due to COVID-19, continuous supply of agriculture commodities, especially staples
like rice, wheat, pulses and vegetables, has been maintained thereby enabling food security . In
order to further strengthen and support the agricultural sector , several initiatives have been taken
by the Government of India under the Atma Nirbhar Bharat Abhiyan (Box 1).
Box 1: Major Announcements for Agriculture and Food Management
under the Atma Nirbhar Bharat Abhiyan
Announcement Objectives
` 1 lakh crores Agri Infrastructure
Fund
Financing will be provided for funding agriculture
infrastructure projects at farm-gate & at aggregation
points and for financially viable post-harvest management
infrastructure.
` 10,000 crores scheme for
Formalisation of Micro Food
Enterprises (MFE)
Aiding 2 lakh MFEs who need technical upgradation to
attain FSSAI food standards, build brands and support
marketing.
` 20,000 crores for fisherman
through Pradhan Mantri Matsya
Sampada Y ojana (PMMSY)
It aims at integrated, sustainable and inclusive development
of marine and inland fisheries by developing infrastructure
such as fishing harbours, cold chain, markets, etc.
National Animal Disease Control
Programme
It tar gets Foot and Mouth Disease (FMD) and Brucellosis
by ensuring 100 per cent vaccination of cattle, buf falo,
sheep, goat and pig population.
Animal Husbandry Infrastructure
Development Fund - ` 15,000
crores
It is to support private investment in dairy processing,
enable value addition and improved cattle feed
infrastructure.
From ‘T OP’ to T OT AL “Operation Greens” run by Ministry of Food Processing
Industries (MOFPI) to be extended from tomatoes, onion
and potatoes to ALL fruit and vegetables.
Reforms in Essential Commodities
Act, Agriculture Marketing and
Agriculture Produce Pricing and
Quality Assurance
These legislat ive reforms seek to remove agricultural
commodities such as cereals, pulses, oilseeds etc. from
the list of essential commodities and aim to reform
agricultural marketing.
PM Garib Kalyan Ann Y ojana The scheme aimed at ensuring food and nutritional security
to around 80 crores ration card holders who were af fected
due to the COVID-19 induced national lockdown.
One Nation One Ration Card
Scheme
This scheme will enable migrant workers and their family
members to access PDS benefits from any fair price shop
in the country .
232 Economic Survey 2020-21 V olume 2
OVERVIEW OF AGRICULTURE
Gross Value Added in Agriculture
7.2 As per the provisional estimates of national income released by CSO on 29
th
May , 2020,
the share of agriculture and allied sectors in Gross V alue Added (GV A) of the country at current
prices is 17.8 per cent for the year 2019-20. GV A of agriculture and allied sectors and its share
in total GV A of the country during the last six years at current prices is as given in T able 1.
Table 1: Share of Agriculture and Allied Sectors in Total GV A at current prices
Items
Year
2014-15 2015-16 2016-17* 2017-18# 2018-19@ 2019-20**
Share of GV A of Agriculture &
Allied Sector in GV A of T otal
Economy (per cent)
18.2 17.7 18.0 18.0 17.1 17.8
Share of Crops 1 1.2 10.6 10.6 10.4 9.4 NA
Share of Livestock 4.4 4.6 4.8 5.1 5.1 NA
Share of Forestry & logging 1.5 1.5 1.5 1.4 1.3 NA
Share of Fishing & aquaculture 1.0 1.1 1.1 1.2 1.2 NA
Source: Department of Agriculture, Cooperation & Farmers W elfare (DAC&FW).
Note:**As per the Provisional Estimates of Annual National Income 2019-20 released by CSO on 29th May 2020.
@As per the First Revised Estimates of National Income, Consumption Expenditure, Saving and capital Formation
for 2018-19 released on 31st January , 2020. # Second Revised Estimate. * Third Revised Estimate.
NA- Data not available.
7.3 The share of agriculture and allied sectors in GV A of the country has declined from 18.2 per
cent in 2014-15 to 17.8 per cent in 2019-20 (T able 1), an inevitable outcome of a development
process in which the relative performance of non-agricultural sectors becomes more dominant.
W ithin the agriculture sector , the share of crops has fallen from 1 1.2 per cent in 2014-15 to 9.4
per cent in 2018-19. The decline in the share of crops has been made up by an increase in the
share of livestock and fisheries sectors.
Figure 1: Share of Agriculture and Allied Sectors in Total GV A
of the Country at Current Prices (in per cent)*
11.2
4.4
1.5
1
10.6
4.6
1.5
1.1
10.6
4.8
1.5
1.1
10.4
5.1
1.4
1.2
9.4
5.1
1.3 1.2
0
2
4
6
8
10
12
Share of Crops Share of Livestock Share of Forestry & logging Share of Fishing &
aquaculture
2014-15 2015-16 2016-17* 2017-18# 2018-19@ 2019-20 **
Source: Created from the data in T able 1.
*All the symbols attached with the years in the graph denote the same as indicated in T able 1.
Page 4
CHAPTER
07
(Who have the shade of cornful crest
Under their umbra umbrella rest.)
—Thiruvalluvar
The resilience of India’s agriculture sector can be seen from the fact that despite the
COVID-19 pandemic, its performance in output was strong. About 54.6 per cent of the
total workforce in the country is still engaged in agricultural and allied sector activities
(Census 2011) which accounts for approximately 17.8 per cent of the country’s Gross
Value Added (GVA) for the year 2019-20 (at current prices). While the difficulties created
by COVID induced lockdowns adversely affected the performance of the non-agricultural
sectors, the agriculture sector came up with a robust growth rate of 3.4 per cent at
constant prices during 2020-21 (first advance estimates). The sector has got renewed
thrust due to various measures on credit, market reforms and food processing under the
Atma Nirbhar Bharat announcements. Various interventions of the Government for the
development of allied sectors including animal husbandry, dairying and fisheries exhibit
its resolve towards tapping the potential of allied sectors to further enhance farm welfare.
In addition to various measures aimed at increasing productivity and improving marketing
of agricultural produce, the Government also carries out a large food management
programme with a significant financial implication in terms of food subsidy. Under the
Pradhan Mantri Garib Kalyan Anna Yojana, 80.96 crores beneficiaries were provided
additional foodgrains, i.e. above the NFSA mandated requirements, of 5 kg per person
per month free of cost till November, 2020. Over 200 LMT of foodgrains were provided
amounting to a fiscal outgo of over ` 75000 Crores. Also, under Atma Nirbhar Bharat
Package, 5 kg per person per month was distributed for four months (May to August) to
benefit approximately 8 crores migrants who are not covered under NFSA or state ration
card entailing subsidy of ` 3109 crores approximately.
Agriculture & Food Management
INTRODUCTION
7.1 COVID-19 pandemic has influenced the lives of people across the globe and India is no
exception to that. The farming activities also experie nced the impact of this pandemic as the
COVID induced lockdowns influenced the movement of farm inputs including farm machinery
from one location to other . The national lockdown coincided with the commencement of the
harvesting season for the Rabi crops creating further adversity for the sector . Migration of
agricultural labourers to their native places during the lockdown created a shortage of farm
231 Agriculture & Food Management
labourers. India’ s agricultural system demonstrated its resilience amid such adversities. The
agriculture and allied sectors were the sole bright spot amid the slide in performance of other
sectors, clock ing a growth rate of 3.4 per cent at constant prices during 2020-21. Against all
adversities due to COVID-19, continuous supply of agriculture commodities, especially staples
like rice, wheat, pulses and vegetables, has been maintained thereby enabling food security . In
order to further strengthen and support the agricultural sector , several initiatives have been taken
by the Government of India under the Atma Nirbhar Bharat Abhiyan (Box 1).
Box 1: Major Announcements for Agriculture and Food Management
under the Atma Nirbhar Bharat Abhiyan
Announcement Objectives
` 1 lakh crores Agri Infrastructure
Fund
Financing will be provided for funding agriculture
infrastructure projects at farm-gate & at aggregation
points and for financially viable post-harvest management
infrastructure.
` 10,000 crores scheme for
Formalisation of Micro Food
Enterprises (MFE)
Aiding 2 lakh MFEs who need technical upgradation to
attain FSSAI food standards, build brands and support
marketing.
` 20,000 crores for fisherman
through Pradhan Mantri Matsya
Sampada Y ojana (PMMSY)
It aims at integrated, sustainable and inclusive development
of marine and inland fisheries by developing infrastructure
such as fishing harbours, cold chain, markets, etc.
National Animal Disease Control
Programme
It tar gets Foot and Mouth Disease (FMD) and Brucellosis
by ensuring 100 per cent vaccination of cattle, buf falo,
sheep, goat and pig population.
Animal Husbandry Infrastructure
Development Fund - ` 15,000
crores
It is to support private investment in dairy processing,
enable value addition and improved cattle feed
infrastructure.
From ‘T OP’ to T OT AL “Operation Greens” run by Ministry of Food Processing
Industries (MOFPI) to be extended from tomatoes, onion
and potatoes to ALL fruit and vegetables.
Reforms in Essential Commodities
Act, Agriculture Marketing and
Agriculture Produce Pricing and
Quality Assurance
These legislat ive reforms seek to remove agricultural
commodities such as cereals, pulses, oilseeds etc. from
the list of essential commodities and aim to reform
agricultural marketing.
PM Garib Kalyan Ann Y ojana The scheme aimed at ensuring food and nutritional security
to around 80 crores ration card holders who were af fected
due to the COVID-19 induced national lockdown.
One Nation One Ration Card
Scheme
This scheme will enable migrant workers and their family
members to access PDS benefits from any fair price shop
in the country .
232 Economic Survey 2020-21 V olume 2
OVERVIEW OF AGRICULTURE
Gross Value Added in Agriculture
7.2 As per the provisional estimates of national income released by CSO on 29
th
May , 2020,
the share of agriculture and allied sectors in Gross V alue Added (GV A) of the country at current
prices is 17.8 per cent for the year 2019-20. GV A of agriculture and allied sectors and its share
in total GV A of the country during the last six years at current prices is as given in T able 1.
Table 1: Share of Agriculture and Allied Sectors in Total GV A at current prices
Items
Year
2014-15 2015-16 2016-17* 2017-18# 2018-19@ 2019-20**
Share of GV A of Agriculture &
Allied Sector in GV A of T otal
Economy (per cent)
18.2 17.7 18.0 18.0 17.1 17.8
Share of Crops 1 1.2 10.6 10.6 10.4 9.4 NA
Share of Livestock 4.4 4.6 4.8 5.1 5.1 NA
Share of Forestry & logging 1.5 1.5 1.5 1.4 1.3 NA
Share of Fishing & aquaculture 1.0 1.1 1.1 1.2 1.2 NA
Source: Department of Agriculture, Cooperation & Farmers W elfare (DAC&FW).
Note:**As per the Provisional Estimates of Annual National Income 2019-20 released by CSO on 29th May 2020.
@As per the First Revised Estimates of National Income, Consumption Expenditure, Saving and capital Formation
for 2018-19 released on 31st January , 2020. # Second Revised Estimate. * Third Revised Estimate.
NA- Data not available.
7.3 The share of agriculture and allied sectors in GV A of the country has declined from 18.2 per
cent in 2014-15 to 17.8 per cent in 2019-20 (T able 1), an inevitable outcome of a development
process in which the relative performance of non-agricultural sectors becomes more dominant.
W ithin the agriculture sector , the share of crops has fallen from 1 1.2 per cent in 2014-15 to 9.4
per cent in 2018-19. The decline in the share of crops has been made up by an increase in the
share of livestock and fisheries sectors.
Figure 1: Share of Agriculture and Allied Sectors in Total GV A
of the Country at Current Prices (in per cent)*
11.2
4.4
1.5
1
10.6
4.6
1.5
1.1
10.6
4.8
1.5
1.1
10.4
5.1
1.4
1.2
9.4
5.1
1.3 1.2
0
2
4
6
8
10
12
Share of Crops Share of Livestock Share of Forestry & logging Share of Fishing &
aquaculture
2014-15 2015-16 2016-17* 2017-18# 2018-19@ 2019-20 **
Source: Created from the data in T able 1.
*All the symbols attached with the years in the graph denote the same as indicated in T able 1.
233 Agriculture & Food Management
Growth in Agriculture & Allied Sectors
7.4 The growth in GV A of agriculture and allied sectors has been fluctuating over time (Figure
2). However , during 2020-21, while the GV A for the entire economy contracted by 7.2 per cent,
growth in GV A for agriculture maintained a positive growth of 3.4 per cent.
Figure 2: Growth of GV A of Economy and Agriculture & Allied
Sectors at Constant (2011-12) Prices (In per cent)
6.1
7.2
8 8
6.6
6
3.9
-7.2
5.6
-0.2
0.6
6.8
5.9
2.4
4
3.4
-8
-6
-4
-2
0
2
4
6
8
10
2013-14 2014-15 2015-16 2016-17* 2017-18# 2018-19@ 2019-20** 2020-21***
Growth of GVA of Total Economy Growth of GVA of Agriculture & Allied Sector (per cent)
Source: Based on data received from DAC&FW .
Note: **As per the Provisional Estimates of Annual National Income 2019-20 released by CSO
on 29th May 2020. @As per the First Revised Estimates of National Income, Consumption
Expenditure, Saving and capital Formation for 2018-19 released on 31st January , 2020. # Second
Revised Estimat e. * Third Revised Estimate. *** First Advance Estimates of National Income
released on 7th January , 2021.
Gross Capital Formation
7.5 Gross Capital Formation (GCF) in the agriculture and allied sector as a proportion to GV A
has been showing a fluctuating trend from 17.7 per cent in 2013-14 to 16.4 per cent in 2018-19,
with a dip to 14.7 per cent in 2015-16. The share of GCF of the agriculture & allied sector to
GV A of agric ulture & allie d sector for the years 2013-14 to 2018-19 at 201 1-12 basic prices is
shown in Figure 3.
Figure 3: GCF of Agriculture & Allied Sector as percentage of
GV A of Agriculture & Allied Sector (at 2011-12 basic prices)
17.7
17
14.7
15.5 15.5
16.4
10
11
12
13
14
15
16
17
18
19
2013-14 2014-15 2015-16 2016-17* 2017-18# 2018-19@
Source: Based on data received from DAC&FW .
@As per the First Revised Estimates of National Income, Consumption Expenditure, Saving and
capital Formation for 2018-19 released on 31st January, 2020. # Second Revised Estimate. * Third
Revised Estimate.
Page 5
CHAPTER
07
(Who have the shade of cornful crest
Under their umbra umbrella rest.)
—Thiruvalluvar
The resilience of India’s agriculture sector can be seen from the fact that despite the
COVID-19 pandemic, its performance in output was strong. About 54.6 per cent of the
total workforce in the country is still engaged in agricultural and allied sector activities
(Census 2011) which accounts for approximately 17.8 per cent of the country’s Gross
Value Added (GVA) for the year 2019-20 (at current prices). While the difficulties created
by COVID induced lockdowns adversely affected the performance of the non-agricultural
sectors, the agriculture sector came up with a robust growth rate of 3.4 per cent at
constant prices during 2020-21 (first advance estimates). The sector has got renewed
thrust due to various measures on credit, market reforms and food processing under the
Atma Nirbhar Bharat announcements. Various interventions of the Government for the
development of allied sectors including animal husbandry, dairying and fisheries exhibit
its resolve towards tapping the potential of allied sectors to further enhance farm welfare.
In addition to various measures aimed at increasing productivity and improving marketing
of agricultural produce, the Government also carries out a large food management
programme with a significant financial implication in terms of food subsidy. Under the
Pradhan Mantri Garib Kalyan Anna Yojana, 80.96 crores beneficiaries were provided
additional foodgrains, i.e. above the NFSA mandated requirements, of 5 kg per person
per month free of cost till November, 2020. Over 200 LMT of foodgrains were provided
amounting to a fiscal outgo of over ` 75000 Crores. Also, under Atma Nirbhar Bharat
Package, 5 kg per person per month was distributed for four months (May to August) to
benefit approximately 8 crores migrants who are not covered under NFSA or state ration
card entailing subsidy of ` 3109 crores approximately.
Agriculture & Food Management
INTRODUCTION
7.1 COVID-19 pandemic has influenced the lives of people across the globe and India is no
exception to that. The farming activities also experie nced the impact of this pandemic as the
COVID induced lockdowns influenced the movement of farm inputs including farm machinery
from one location to other . The national lockdown coincided with the commencement of the
harvesting season for the Rabi crops creating further adversity for the sector . Migration of
agricultural labourers to their native places during the lockdown created a shortage of farm
231 Agriculture & Food Management
labourers. India’ s agricultural system demonstrated its resilience amid such adversities. The
agriculture and allied sectors were the sole bright spot amid the slide in performance of other
sectors, clock ing a growth rate of 3.4 per cent at constant prices during 2020-21. Against all
adversities due to COVID-19, continuous supply of agriculture commodities, especially staples
like rice, wheat, pulses and vegetables, has been maintained thereby enabling food security . In
order to further strengthen and support the agricultural sector , several initiatives have been taken
by the Government of India under the Atma Nirbhar Bharat Abhiyan (Box 1).
Box 1: Major Announcements for Agriculture and Food Management
under the Atma Nirbhar Bharat Abhiyan
Announcement Objectives
` 1 lakh crores Agri Infrastructure
Fund
Financing will be provided for funding agriculture
infrastructure projects at farm-gate & at aggregation
points and for financially viable post-harvest management
infrastructure.
` 10,000 crores scheme for
Formalisation of Micro Food
Enterprises (MFE)
Aiding 2 lakh MFEs who need technical upgradation to
attain FSSAI food standards, build brands and support
marketing.
` 20,000 crores for fisherman
through Pradhan Mantri Matsya
Sampada Y ojana (PMMSY)
It aims at integrated, sustainable and inclusive development
of marine and inland fisheries by developing infrastructure
such as fishing harbours, cold chain, markets, etc.
National Animal Disease Control
Programme
It tar gets Foot and Mouth Disease (FMD) and Brucellosis
by ensuring 100 per cent vaccination of cattle, buf falo,
sheep, goat and pig population.
Animal Husbandry Infrastructure
Development Fund - ` 15,000
crores
It is to support private investment in dairy processing,
enable value addition and improved cattle feed
infrastructure.
From ‘T OP’ to T OT AL “Operation Greens” run by Ministry of Food Processing
Industries (MOFPI) to be extended from tomatoes, onion
and potatoes to ALL fruit and vegetables.
Reforms in Essential Commodities
Act, Agriculture Marketing and
Agriculture Produce Pricing and
Quality Assurance
These legislat ive reforms seek to remove agricultural
commodities such as cereals, pulses, oilseeds etc. from
the list of essential commodities and aim to reform
agricultural marketing.
PM Garib Kalyan Ann Y ojana The scheme aimed at ensuring food and nutritional security
to around 80 crores ration card holders who were af fected
due to the COVID-19 induced national lockdown.
One Nation One Ration Card
Scheme
This scheme will enable migrant workers and their family
members to access PDS benefits from any fair price shop
in the country .
232 Economic Survey 2020-21 V olume 2
OVERVIEW OF AGRICULTURE
Gross Value Added in Agriculture
7.2 As per the provisional estimates of national income released by CSO on 29
th
May , 2020,
the share of agriculture and allied sectors in Gross V alue Added (GV A) of the country at current
prices is 17.8 per cent for the year 2019-20. GV A of agriculture and allied sectors and its share
in total GV A of the country during the last six years at current prices is as given in T able 1.
Table 1: Share of Agriculture and Allied Sectors in Total GV A at current prices
Items
Year
2014-15 2015-16 2016-17* 2017-18# 2018-19@ 2019-20**
Share of GV A of Agriculture &
Allied Sector in GV A of T otal
Economy (per cent)
18.2 17.7 18.0 18.0 17.1 17.8
Share of Crops 1 1.2 10.6 10.6 10.4 9.4 NA
Share of Livestock 4.4 4.6 4.8 5.1 5.1 NA
Share of Forestry & logging 1.5 1.5 1.5 1.4 1.3 NA
Share of Fishing & aquaculture 1.0 1.1 1.1 1.2 1.2 NA
Source: Department of Agriculture, Cooperation & Farmers W elfare (DAC&FW).
Note:**As per the Provisional Estimates of Annual National Income 2019-20 released by CSO on 29th May 2020.
@As per the First Revised Estimates of National Income, Consumption Expenditure, Saving and capital Formation
for 2018-19 released on 31st January , 2020. # Second Revised Estimate. * Third Revised Estimate.
NA- Data not available.
7.3 The share of agriculture and allied sectors in GV A of the country has declined from 18.2 per
cent in 2014-15 to 17.8 per cent in 2019-20 (T able 1), an inevitable outcome of a development
process in which the relative performance of non-agricultural sectors becomes more dominant.
W ithin the agriculture sector , the share of crops has fallen from 1 1.2 per cent in 2014-15 to 9.4
per cent in 2018-19. The decline in the share of crops has been made up by an increase in the
share of livestock and fisheries sectors.
Figure 1: Share of Agriculture and Allied Sectors in Total GV A
of the Country at Current Prices (in per cent)*
11.2
4.4
1.5
1
10.6
4.6
1.5
1.1
10.6
4.8
1.5
1.1
10.4
5.1
1.4
1.2
9.4
5.1
1.3 1.2
0
2
4
6
8
10
12
Share of Crops Share of Livestock Share of Forestry & logging Share of Fishing &
aquaculture
2014-15 2015-16 2016-17* 2017-18# 2018-19@ 2019-20 **
Source: Created from the data in T able 1.
*All the symbols attached with the years in the graph denote the same as indicated in T able 1.
233 Agriculture & Food Management
Growth in Agriculture & Allied Sectors
7.4 The growth in GV A of agriculture and allied sectors has been fluctuating over time (Figure
2). However , during 2020-21, while the GV A for the entire economy contracted by 7.2 per cent,
growth in GV A for agriculture maintained a positive growth of 3.4 per cent.
Figure 2: Growth of GV A of Economy and Agriculture & Allied
Sectors at Constant (2011-12) Prices (In per cent)
6.1
7.2
8 8
6.6
6
3.9
-7.2
5.6
-0.2
0.6
6.8
5.9
2.4
4
3.4
-8
-6
-4
-2
0
2
4
6
8
10
2013-14 2014-15 2015-16 2016-17* 2017-18# 2018-19@ 2019-20** 2020-21***
Growth of GVA of Total Economy Growth of GVA of Agriculture & Allied Sector (per cent)
Source: Based on data received from DAC&FW .
Note: **As per the Provisional Estimates of Annual National Income 2019-20 released by CSO
on 29th May 2020. @As per the First Revised Estimates of National Income, Consumption
Expenditure, Saving and capital Formation for 2018-19 released on 31st January , 2020. # Second
Revised Estimat e. * Third Revised Estimate. *** First Advance Estimates of National Income
released on 7th January , 2021.
Gross Capital Formation
7.5 Gross Capital Formation (GCF) in the agriculture and allied sector as a proportion to GV A
has been showing a fluctuating trend from 17.7 per cent in 2013-14 to 16.4 per cent in 2018-19,
with a dip to 14.7 per cent in 2015-16. The share of GCF of the agriculture & allied sector to
GV A of agric ulture & allie d sector for the years 2013-14 to 2018-19 at 201 1-12 basic prices is
shown in Figure 3.
Figure 3: GCF of Agriculture & Allied Sector as percentage of
GV A of Agriculture & Allied Sector (at 2011-12 basic prices)
17.7
17
14.7
15.5 15.5
16.4
10
11
12
13
14
15
16
17
18
19
2013-14 2014-15 2015-16 2016-17* 2017-18# 2018-19@
Source: Based on data received from DAC&FW .
@As per the First Revised Estimates of National Income, Consumption Expenditure, Saving and
capital Formation for 2018-19 released on 31st January, 2020. # Second Revised Estimate. * Third
Revised Estimate.
234 Economic Survey 2020-21 V olume 2
Production of Crops
7.6 In the year 2019-20 (as per fourth advance estimates), total food grain production in
the country is estimated at record 296.65 million tonnes which is higher by 1 1.44 million
tonnes than the production of food grain of 285.21 million tonnes achieved during 2018-
19. Further , the production during 2019-20 is higher by 26.87 million tonnes than the
previous five years’ (2014-15 to 2018-19) average production of 269.78 million tonnes. A
diagrammatic trend in output of major crops for the last five years are shown in Figure 4
and Figure 5.
Figure 4: Trend in Production of Rice and Wheat Crops (Quantity in Million Tonnes)
0
20
40
60
80
100
120
2015-16 2016-17 2017-18 2018-19 2019-20*
Rice Wheat
Source: Created from the data of the 1st Adv . Estimate released dated 22.09.2020
*4th Advanced Estimates.
Figure 5: Trend in Production of Other Major Crops (Quantity in Million Tonnes)
0
5
10
15
20
25
30
35
40
45
50
2015-16 2016-17 2017-18 2018-19 2019-20*
Nu tr i/ Co a rse Ce re a ls Pulses Oilseeds Cotton@
Source: Created from the data of the 1st Adv . Estimate released dated 22.09.2020
*4th Advanced Estimates. @ Production of cotton is in million bales.
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