Answer:

Introduction:

Indian agriculture plays a vital role in the nation’s economy, employing approximately 44% of the workforce and contributing around 17% to the GDP. Despite its significance, the sector faces significant challenges in achieving inclusive growth and sustainable productivity gains. For example, India’s average cereal yield is about 2.9 tons per hectare, compared to China’s 6.7 tons per hectare, highlighting a substantial productivity gap.

Body:

Key Challenges:

Challenges Faced in Achieving Inclusive Growth (IG):

• Low Productivity: Indian agriculture suffers from low productivity due to outdated farming techniques and insufficient use of high-yield variety seeds and fertilisers.
  For example: India’s rice yields are approximately one-third of those in China. According to the World Bank, India’s cereal yields have grown by only 1.4% per annum in the 2000s.
• Fragmented Land Holdings: Small and fragmented land holdings impede economies of scale and mechanisation.
  For example: The average landholding size in India is about 1.08 hectares, making it difficult for farmers to invest in advanced technologies. Studies show that over 86% of farmers in India operate on small and marginal holdings.
• Lack of Access to Modern Technology: There is a significant technology gap, with many farmers lacking access to modern equipment and digital tools.
  For example: Precision agriculture technologies used in countries like the USA have significantly boosted yields, a practice still limited in India. The FAO highlights that adopting modern technologies can improve yields by up to 30%, yet adoption rates in India remain low.
• Market Access and Infrastructure: Poor infrastructure and limited market access hinder farmers from getting fair prices for their produce.
  • For example: Inadequate cold storage facilities lead to post-harvest losses, particularly in perishable commodities like fruits and vegetables. The World Bank notes that India loses about 40% of its fruits and vegetables due to lack of proper storage and transportation.

Challenges Faced in Achieving Sustainable Productivity:

• Climate Change and Environmental Degradation: Climate change poses severe risks to agriculture through erratic weather patterns, droughts, and floods.
  For example: The 2020 locust swarms, exacerbated by climate change, severely affected crop yields in Rajasthan and Gujarat. NITI Aayog reports that around 63% of India’s agricultural land is rainfed, making it highly vulnerable to climate variability.
• Overexploitation of Natural Resources: The overuse of groundwater and soil degradation are major concerns.
  For example: The Central Ground Water Board has reported that 89% of the groundwater extracted in India is used for irrigation, leading to significant depletion of aquifers.
• Inadequate Use of Sustainable Farming Practices: A lack of awareness and incentives for adopting sustainable agricultural practices such as organic farming, crop rotation, and conservation tillage.
  For example: Organic farming constitutes less than 2% of the total agricultural area in India, despite its potential benefits for soil health and long-term productivity.
• Pesticide and Chemical Fertilizer Dependency: Excessive reliance on chemical fertilizers and pesticides can lead to environmental damage and health issues.
  For example: A study by the Indian Council of Agricultural Research (ICAR) found that excessive pesticide use has led to the contamination of soil and water resources, affecting biodiversity and human health.

Measures to Address These Challenges:

Measures for Enhancing Inclusive Growth (IG):

• Ensuring Financial Inclusion: Facilitate access to credit and financial services for small and marginal farmers through simplified processes and low-interest loans.
  For example: The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to provide affordable access to financial services, including bank accounts and credit facilities, to underserved rural populations.
• Empowering Women Farmers: Promote gender-inclusive policies and programs to empower women in agriculture through training, credit access, and land rights.
  For example: The Mahila Kisan Sashaktikaran Pariyojana (MKSP) focuses on building the capacity of women farmers and enhancing their role in agriculture.
• Skill Development and Training: Implement targeted skill development programmes to enhance the capabilities of farmers and rural youth in modern farming techniques and allied sectors.
  For example: The Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) aims to diversify incomes of rural poor through skill development.
• Social Security for Farmers: Ensure social security measures such as crop insurance and pension schemes for farmers to mitigate risks and provide a safety net.
  For example: The Pradhan Mantri Fasal Bima Yojana (PMFBY) provides comprehensive insurance coverage against crop failure.
• Promotion of Agri-business and Rural Enterprises: Encourage the development of agribusinesses and rural enterprises to create additional income opportunities and reduce dependence on agriculture alone.
  For example: The SFURTI (Scheme of Fund for Regeneration of Traditional Industries) scheme promotes cluster development to support traditional industries and rural artisans.

Measures for Enhancing Sustainable Productivity:

• Enhancing Productivity: Promote the use of high-yield variety seeds, fertilisers, and advanced irrigation techniques.
  For example: The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) aims to improve water use efficiency through micro-irrigation systems.
• Adopting Climate-Resilient Practices: Encourage climate-smart agriculture practices such as crop diversification, conservation tillage, and agroforestry.
  For example: The National Innovations in Climate Resilient Agriculture (NICRA) project focuses on developing climate-resilient crop varieties and farming practices.
• Land Consolidation: Promote land consolidation and cooperative farming to enhance productivity and resource use efficiency.
  For example: The success of cooperative farming models in Israel, where farmers share resources and benefits, can serve as a model for India.
• Technology Integration: Facilitate the adoption of modern agricultural technologies through subsidies and training programmes.
  For example: The introduction of the eNAM (National Agriculture Market) platform to provide farmers with better price discovery and market access.
• Improving Market Access and Infrastructure: Invest in rural infrastructure, including roads, cold storage, and processing facilities, to reduce post-harvest losses and improve market access.
  For example: The development of Farmer Producer Organizations (FPOs) to enhance collective bargaining power and market linkages.

Conclusion:

Addressing the challenges faced by Indian agriculture requires a multi-pronged approach that includes enhancing productivity, adopting sustainable practices, promoting land consolidation, integrating modern technologies, and improving market infrastructure. By implementing these measures, India can achieve inclusive growth and sustainable productivity gains in its agriculture sector. Policymakers must prioritise these reforms to ensure the long-term viability and prosperity of Indian agriculture.

DOWNLOAD PDF