Hindu Editorial Analysis : 15-May-2024

Agriculture is a vital source of livelihood for many people in India. A large part of the population depends on farming for their daily needs and economic stability. To support this sector, the government has introduced several policies aimed at enhancing agricultural exports and ensuring farmers benefit from global markets.

Agricultural Export Policy

In 2018, India announced its agricultural export policy to boost exports significantly. As a result, agricultural exports have reached an impressive ₹4 lakh crore. The key objectives of this policy include:

  • Diversification: Expanding the range of agricultural products exported.
  • Promotion of Indigenous Products: Encouraging the export of organic, ethnic, and traditional foods.
  • Market Access: Establishing mechanisms to overcome barriers in international markets.
  • Global Integration: Aiming to double India’s share in global agricultural exports.

Economic Impact of Agriculture

India is one of the world’s largest agricultural producers, making agriculture essential to the economy. In FY24, the agricultural sector is expected to contribute about 18% to India’s Gross Value Added (GVA). In FY23, India produced a total of 329.7 million tonnes of food grains, a rise of 14.1 million tonnes from the previous year. India is also the largest producer of:

  • Milk
  • Pulses
  • Spices

Additionally, India ranks second in producing fruits, vegetables, and other essential crops. The horticulture sector reached a record production of 355.25 million tonnes.

Concerns in the Sector

Despite these achievements, there are several challenges facing the agricultural export sector:

  • Export Restrictions: Recent bans on certain crops due to domestic food inflation have impacted exports.
  • Policy Ambiguities: Unclear trade policies can hinder effective export practices.
  • Food Waste: Significant losses and waste in food production need to be addressed.
  • Environmental Issues: Problems like groundwater depletion and ecological damage from excessive fertilizer use threaten sustainability.
  • Farmer Income: There is a growing concern about the dwindling income of farmers.

Benefits of the New Export Policy

The new agricultural export policy offers several advantages:

  • Diversification: Encourages farmers to grow a wider variety of crops.
  • Quality Improvement: Farmers can improve their practices to meet international standards.
  • Investment Opportunities: A supportive policy can attract more investment in agriculture.
  • Job Creation: Increased exports can lead to new jobs in logistics and quality control.
  • Market Access: Farmers gain better access to international buyers.
  • Risk Management: Diversifying export markets helps reduce vulnerability to price fluctuations.
  • Economic Growth: A strong export sector contributes to the overall economic growth of India.

Government Initiatives

The Indian government has implemented various initiatives to support farmers, including:

  • Financial Assistance: Programs like PM-KISAN provide direct aid to millions of farmers.
  • Digital Inclusion: The e-NAM platform connects farmers with markets, enhancing their opportunities.
  • Increased Budget: The agriculture budget has seen significant increases, supporting various initiatives.
  • Crop Insurance: The PMFBY offers comprehensive crop insurance to protect farmers against losses.

Why In News

Agriculture remains a vital source of livelihood for a significant portion of the Indian population, providing not only food security but also employment opportunities and economic stability for millions of families across the country.

MCQs about The Importance of Agriculture in India

  1. What was the main objective of India’s agricultural export policy announced in 2018?
    A. To increase domestic food prices
    B. To reduce the number of farmers
    C. To diversify the export basket and boost high-value agricultural exports
    D. To promote only traditional crops
    Correct Answer: C. To diversify the export basket and boost high-value agricultural exports
    Explanation: The main objective of the agricultural export policy was to diversify India’s export basket, destinations, and enhance high-value agricultural exports, including a focus on perishables.
  2. What percentage of India’s Gross Value Added (GVA) is estimated to come from the agricultural sector in FY24?
    A. 10%
    B. 18%
    C. 25%
    D. 30%
    Correct Answer: B. 18%
    Explanation: The agricultural sector is estimated to contribute about 18% to India’s Gross Value Added (GVA) in FY24, highlighting its significance in the economy.
  3. Which of the following is NOT a benefit of the new agricultural export policy?
    A. Improved quality standards
    B. Increased dependence on local markets
    C. Job creation in related sectors
    D. Enhanced risk management through diversification
    Correct Answer: B. Increased dependence on local markets
    Explanation: One of the goals of the new agricultural export policy is to improve market access for farmers and reduce dependence on local markets, making option B incorrect.
  4. What initiative does the government have in place to provide financial assistance to farmers?
    A. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
    B. National Horticulture Mission
    C. Food Security Act
    D. Agricultural Export Policy
    Correct Answer: A. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
    Explanation: The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a financial assistance program designed to support farmers by providing direct cash transfers, helping improve their livelihoods.

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