Indian agriculture, traditionally seen as a low-tech sector, has the potential to drive significant economic growth and job creation. Despite employing around 42% of the workforce and contributing 18% to the country’s GDP, the sector's growth is often inconsistent, and its environmental impact is substantial. This article explores the current status of Indian agriculture, identifies the challenges it faces, and suggests key measures to enhance productivity and sustainability.

Current Status of Indian Agriculture

·        Agriculture is crucial to India’s economy, but its performance has been mixed. In 2021-22, the sector grew by 3.9%, a slight improvement over 2020-21, showing resilience during the pandemic. India’s foodgrains production reached a record 315.7 million tonnes in 2021-22, despite the adverse effects of climate change. Agricultural exports also saw significant growth, reaching USD 50.21 billion in 2021-22, with key exports including rice, wheat, and cotton.

·        However, agriculture’s share in India’s workforce is gradually declining, from 81% in 1983 to 42% today. This shift reflects the sector's challenges and the broader structural changes in the economy. The government has introduced various initiatives to support agriculture, such as the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), and National Mission on Sustainable Agriculture. These initiatives aim to support farmers, improve productivity, and ensure sustainable practices in agriculture.

Challenges Facing Indian Agriculture

Despite the potential, Indian agriculture faces several critical challenges:

1.   Fragmented Land Holdings: One of the major issues is the fragmentation of agricultural land. According to the Agriculture Census 2015-16, 86% of Indian farmers are small and marginal, with landholdings smaller than 2 hectares. This limits access to modern technologies, capital, and resources, thereby reducing productivity.

2.   Water Scarcity and Irrigation Issues: India has only 4% of the world’s freshwater resources but holds 18% of the global population. Over-reliance on monsoon rains, coupled with inefficient irrigation systems, hampers agricultural productivity. Only 52% of India’s cultivated land has access to irrigation, making agriculture vulnerable to the impacts of climate change, including droughts and heatwaves.

3.   Technological Lag: While the Green Revolution of the 1960s and 70s brought significant improvements in yields, the adoption of modern technologies like precision farming, drones, and artificial intelligence remains low in India. This technological lag contributes to lower yields compared to global standards.

4.   Market Inefficiencies and Price Manipulation: The Agricultural Produce Market Committee (APMC) system has often led to exploitation by middlemen, leaving farmers with only a small portion of the retail price. Although the e-NAM (Electronic National Agriculture Market) platform was launched in 2016 to address these inefficiencies, its reach is still limited, with only 1.77 crore farmers registered by February 2024.

5.   Debt Burden: Many farmers face limited access to institutional credit, forcing them to rely on informal lenders who charge high interest rates. As a result, a significant proportion of India’s agricultural households remain trapped in a cycle of debt.

6.   Subsidy Misallocation: Government subsidies, while intended to support farmers, often lead to the overuse of resources like fertilizers and water, causing environmental degradation. Additionally, the Minimum Support Price (MSP) system incentivizes the production of water-intensive crops like rice and wheat, exacerbating resource depletion.

7.   Post-Harvest Losses: India faces massive post-harvest losses due to inadequate storage and transportation infrastructure. This reduces farmer incomes and contributes to food insecurity.

Key Measures to Enhance Agricultural Productivity

To address these challenges and enhance agricultural productivity, the following measures can be adopted:

1.   Precision Agriculture: Implementing precision farming techniques can optimize resource use and improve productivity. Technologies such as GPS-guided machinery, Internet of Things (IoT) sensors, and data analytics can help farmers use water, fertilizers, and pesticides more efficiently. In Maharashtra, a pilot project using precision agriculture techniques resulted in a significant increase in crop yield and a reduction in water usage. Expanding these practices across the country can conserve water and boost crop productivity.

2.   Crop Diversification: Shifting focus from staple crops like wheat and rice to high-value crops like fruits, vegetables, and millets can increase farmers' incomes and improve soil health. For instance, Odisha has implemented successful crop diversification programs that not only raised farmer incomes but also enhanced nutritional security. Encouraging farmers to grow a variety of crops can help reduce risks associated with monoculture farming and improve sustainability.

3.   Farmer Producer Organizations (FPOs): Strengthening FPOs can enable small farmers to access economies of scale, reduce input costs, and negotiate better prices. The Sahyadri Farmers Producer Company in Maharashtra has successfully increased farmer incomes by 25-30% through collective bargaining. Replicating this model across India can help farmers gain better market access and improve their overall productivity.

4.   Climate-Smart Agriculture: With the growing threat of climate change, adopting climate-smart agricultural practices is crucial for long-term sustainability. These practices include promoting drought-resistant crop varieties, using water-efficient irrigation methods, and leveraging climate forecasting tools. The introduction of flood-tolerant rice varieties like Swarna-Sub1 has already shown yield advantages in flood-prone areas.

5.   Agri-Tech Innovations: Encouraging the growth of agri-tech startups can foster innovation in farming practices. Startups like DeHaat, which offer end-to-end services to farmers, have shown promising results in improving productivity and market access. A supportive ecosystem, including incubation centers and funding opportunities, can accelerate the adoption of advanced technologies in agriculture.

6.   Improving Post-Harvest Infrastructure: Investing in cold storage, food processing units, and efficient transportation systems can minimize post-harvest losses, which are estimated to cost the Indian economy ₹92,651 crore annually. Establishing mega food parks and processing facilities across the country can help reduce these losses and ensure that farmers get better prices for their produce.

7.   Agricultural Education and Extension Services: Bridging the knowledge gap in agriculture is essential for improving productivity. Strengthening agricultural extension services, as seen in the PRAGATI scheme, and modernizing agricultural universities can equip farmers with the skills and knowledge to adopt modern practices and technologies.

Conclusion

Indian agriculture, despite its potential, faces several challenges that hinder its growth and sustainability. However, by embracing modern technologies like precision farming, promoting crop diversification, and improving post-harvest infrastructure, the sector can become more productive, environmentally sustainable, and economically viable. Government initiatives, technological innovations, and better market access can transform Indian agriculture into a key driver of economic growth, job creation, and rural development. With concerted efforts from policymakers, farmers, and the private sector, Indian agriculture can unlock its full potential and contribute significantly to the nation's progress.