Page 631 - ES 2020-21_Volume-1-2 [28-01-21]

258 Economic Survey 2020-21 Volume 2

the country. Progress in agriculture (including forestry and fisheries) has a bearing on the fate
of the largest low-income group in India.

7.72 There is a need for a paradigm shift in how we view agriculture from a rural livelihood
sector to a modern business enterprise. In this context, both production and post production
in agriculture needs urgent reforms to enable sustainable and consistent growth. Increase in
area under irrigation, adoption of hybrid and improved seeds, increasing variety replacement
ratio and augmentation in seed testing facilities will help address low productivity concerns.
Adequate storage and remunerative markets for agricultural products should be the main focus
of post-production management. It is also important to integrate agriculture with nutritional
outcomes by means of food fortification of staples.

7.73 On the post-production front, measures like village level procurement centres, linkages
between production and processing, development of rural markets, option of selling outside
the APMC markets – warehouse upgradations and strengthening of railways freight operations,
dedicated freight corridors among others are needed and are being taken up. These measures
will not only reduce post-harvest losses but will also help realize the objective of doubling
farmers’ income.

7.74 All business enterprises need to optimise on inputs - both knowledge and materials.
Therefore, it is also essential to impart farmers with basic education and training to transform his
/ her role from that of a producer to an entrepreneur. The option of setting up of rural agricultural
schools for hands-on training may be explored in this regard. Allied sectors including animal
husbandry, dairying and fisheries have gradually become a significant source of farm income
and employment. Measures need to be taken to increase the productivity of the allied sectors
along with sufficient provision for marketing of their products. Another area of emphasis is the
need to strengthen agriculture extension services which are extremely important as they provide
technical information to the farmer about improved agricultural practices, guidance on the use
of these inputs and other services in support of their production.

7.75 The food subsidy bill is becoming unmanageably large. While it is difficult to reduce the
economic cost of food management in view of rising commitment towards food security, there
is a need to consider the revision of CIP to reduce the bulging food subsidy bill.

CHAPTER AT A GLANCE

¾ India’s agricultural sector has shown its resilience amid the adversities of COVID induced
lockdowns. The Agriculture and allied activities were the sole bright spot amid the slide
in GDP performance of other sectors, clocking a growth rate of 3.4 per cent at constant
prices during 2020-21 (1 Advance Estimates).
st

¾ As per the provisional estimates of national income released by CSO on 29th May, 2020,
the share of agriculture and allied sectors in Gross Value Added (GVA) of the country at
current prices is 17.8 per cent for the year 2019-20.