GS III … Economic Development
Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.
QUESTION: "After liberalization, the growth of agricultural GDP and an increase in the real incomes of the farmers are not in tune with the Nation’s GDP growth." Critically examine the statement. Important for : ESSAY/ MAINS / GD / INTERVIEW
Analysis of Indian Express and The Hindu Editorial
GVA GROWTH IN AGRICULTURE AT 2.7%
As per the CSO’s second advanced estimates of national income for 2018-19, GVA at basic prices from agriculture, forestry and fishing is expected to be 2.7% during 2018-19 and it is 5% in 2017-18.
This is a massive drop of 46%.
MONTHLY INCOME OF AGRI–HOUSEHOLDS!
NABARD’s latest survey on Financial Inclusion, called NAFIS, for the agricultural year, 2015-16 presents Agri-households in Punjab had the highest monthly income of Rs. 23,133, while in Uttar Pradesh it was Rs. 6,668.
At the all India level, the average income of an Agri-household was Rs. 8,931 per month in 2015-16.
The annual compound growth rates of real incomes between 2002-03 and 2015-16 was 3.7% at the all India level.
WHAT ABOUT DOUBLING THE FARMERS’ INCOME?
Doubling the farmers income by 2022-23 is not possible.
It was estimated that the growth rate required to achieve the target would have to be 10.4% per annum from base period of 2015-16. Now it is hovering around 3%.
To double farmers income by 2022-23, it has to be 15% per annum in the remaining 4 years. This is almost impossible.
STRUCTURAL REFORMS IS THE NEED OF THE HOUR!
We have to open up Agri-marketing.
Land lease markets / contract farming is to be looked at.
Rationalisation of food and input subsidies like fertilizers, power, irrigation, insurance, interest subvention etc., are to be looked at.
Investing in innovations that can ensure not only higher productivity in agriculture, but also its sustainability and profitability is the need of the hour.
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