Hindu Editorial Analysis : 12-June-2024

India’s agricultural sector, despite its vast land resources, is grappling with significant challenges that affect its productivity and competitiveness. While food grain production reached an impressive 3.2 billion tonnes in 2023, the sector’s contribution to the country’s GDP has been declining. This essay explores these issues and outlines potential solutions.

Decline in Agriculture’s GDP Share

Over the past few decades, the share of agriculture in India’s GDP has dropped dramatically. Key statistics include:

  • 35% in 1990-91
  • 15% in 2022-23

This decline highlights the rapid expansion of the industrial and service sectors. Despite this shift, the need for food security remains critical, especially with a population exceeding 1.40 billion.

Key Challenges

The agricultural sector faces several pressing challenges that hinder its growth:

  • Limited Access to Advanced Crop Nutrition: Regulatory barriers restrict access to innovative fertilizers that could enhance crop yields.
  • Subsidized vs. Specialty Fertilizers: Heavily subsidized bulk fertilizers often fail to meet the specific nutritional requirements of crops, while specialty fertilizers face hurdles in market introduction.
  • Innovation and Efficiency: A slow adoption of innovative agricultural practices limits the potential for increased yields.
  • Subpar Yields: These issues contribute to lower crop yields, which negatively impact farmers’ incomes and India’s export potential.
  • Stringent Regulatory Process: The lengthy fertilizer registration process discourages new innovations in the market.

Government Reforms and Initiatives

In response to these challenges, the government has introduced several reforms:

  • National Trade Facilitation Action Plan (NTFAP) 2017-2020: While focused on trade, this plan improves efficiency in agricultural imports and exports.
  • 2014 Guidelines for Water-Soluble Fertilizers: These guidelines reduced approval times for new fertilizers to less than 60 days, promoting innovation.
  • Digital Registration Processes: Digitizing the application process aims to streamline approvals for fertilizers.

The Way Ahead

To enhance the agricultural sector’s productivity, several strategies can be implemented:

  • Micro-nutrient Coated Fertilizers: These can improve efficiency and reduce dependence on subsidies.
  • Streamlined Regulatory Framework: Establishing clear specifications for fertilizers can expedite approvals.
  • Digitalization of Registration: Online applications can lead to faster processing of new products.
  • Learning from Success Stories: Successful reforms, like those for water-soluble fertilizers, can serve as models for future initiatives.
  • Investment in Research and Development: Allocating resources for new fertilizer formulations tailored to Indian soils and crops is essential.

Why In News

India’s agricultural sector, despite its vast acreage, faces significant challenges in productivity and competitiveness. While food grain production reached a record high of 3.2 billion tonnes in 2023, the sector’s contribution to GDP has declined sharply due to lagging growth compared to the rapidly expanding industrial and service sectors, raising concerns about the sustainability of agricultural practices in the face of increasing demands.

MCQs about Challenges and Opportunities in India’s Agricultural Sector

  1. What was the share of agriculture in India’s GDP in 2022-23?
    A. 25%
    B. 20%
    C. 15%
    D. 10%
    Correct Answer: C. 15%
    Explanation: The share of agriculture in India’s GDP dropped to 15% in 2022-23, a significant decline from 35% in 1990-91.
  2. Which of the following is a key challenge faced by India’s agricultural sector?
    A. Excessive fertilizer use
    B. Limited access to advanced crop nutrition
    C. High levels of farmer income
    D. Abundance of specialty fertilizers
    Correct Answer: B. Limited access to advanced crop nutrition
    Explanation: Regulatory barriers limit access to innovative fertilizers, which is a significant challenge for increasing crop productivity.
  3. What was a result of the 2014 guidelines for water-soluble fertilizers?
    A. Increased subsidy reliance
    B. Reduced approval times for new fertilizers
    C. Decreased fertilizer usage
    D. Stricter regulations on bulk fertilizers
    Correct Answer: B. Reduced approval times for new fertilizers
    Explanation: The guidelines reduced the approval time for new water-soluble fertilizers to less than 60 days, encouraging innovation in the sector.
  4. What strategy is suggested to enhance agricultural productivity in India?
    A. Limiting research and development funding
    B. Increasing reliance on traditional farming methods
    C. Investing in new fertilizer formulations
    D. Expanding regulations on existing fertilizers
    Correct Answer: C. Investing in new fertilizer formulations
    Explanation: Allocating resources for developing new fertilizer formulations tailored to Indian soil and crop needs is essential for improving productivity.

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