Challenge for farm sector: How to share growth gains


What is the issue?

The article underscores the arduous path and challenges confronting the Indian agriculture sector as it aims for the “Amrit Kaal” or Golden Era. It critiques policymakers for their inability to ensure decent incomes for farmers, leaving the sector mired in a persistent and difficult situation with uncertain prospects for improvement.

 

What are the major challenges faced by agriculture?

  • Climate Change Impact: Irreversible effects are disrupting crop production and livelihoods through erratic climatic events.
  • World Trade Organization (WTO) Issues: Unfair practices within WTO and deliberate actions by the US undermine dispute-resolution mechanisms, posing enforcement challenges in India.
  • Small Landholdings: Over 85% of cultivable land consists of small holdings, hindering farmers’ ability to sustain satisfactory incomes.
  • Global Pressure on Food Prices: Emphasis on low food prices globally artificially depresses farm-gate prices, making agriculture financially unsustainable.
  • Depleting Aquifers: Continuous depletion of aquifers due to high water demand for agriculture jeopardizes long-term water security.
  • Subsidy Challenges: Skewed fertilizer subsidies promote excessive use, harming health and the environment.
  • Public Debt and Financial Constraints: Mounting government debt limits financial flexibility and sustainable subsidy provision, with many states facing fiscal crises.
  • Governance and Accountability Issues: Ineffective leadership and lack of accountability in agricultural governance at national and state levels undermine sectoral management and development.

 

What needs to be done?

  • Boosting Research and Extension Investments: Government must increase funding for agricultural research and extension services, which offer significant economic returns, ensuring sustainable agricultural development.
  • Promoting Inclusive and Sustainable Agriculture: Shift focus from mere productivity enhancement to sustainable agricultural practices benefiting all societal segments, promoting inclusive growth.
  • Advancing Long-term Policy Reforms: Emphasize comprehensive policy reforms over incremental changes to foster enduring improvements in the agricultural sector.

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