Saturday 2 September 2017

Sustainability of Indian Agriculture - A Brief Commentary

Dr. Debesh Roy

The criticality of agriculture for sustainable and inclusive growth of the Indian economy can be gauged from the fact that, the sector provides employment to about 48.9 per cent of the total workforce in India, but contributes only 15.2 per cent to the country’s Gross Value Added (GVA). Indian agriculture continues to depend on the vagaries of nature. For instance, after two years of back-to-back poor monsoons and drought conditions in several parts of the country, agriculture in India picked up momentum during 2016-17 due to normal monsoon. Therefore, the overdependence of agriculture on monsoons needs to be reduced, with a view to achieving agricultural sustainability.
There are various other constraints and challenges that need to be addressed urgently at the policy, planning, technological, institutional, and operational levels, with a view to achieving sustainability of Indian agriculture.  About 85 per cent of operational holdings in the country are in the small and marginal categories, and the average size of an operational holding is only 1.15 ha. Due to fragmentation and disorganisation, farmers face constraints in procuring inputs like seeds and fertilizers at reasonable prices, lack bargaining power in the market for realising better value for their produce, and have inadequate access to credit, technology and extension services.
Stagnation in productivity of agricultural crops has been observed in India, due to decline in farm size and income; depleting natural resource base; increasing input costs, and adverse economics of farming; deficiency of micronutrients in the soil and deteriorating soil health; inadequate post-harvest technology; uncertain market prospects; and high indebtedness of farmers. Capital formation is of critical importance for the sustainability of agricultural growth, and it is imperative to arrest the declining trend and increase investment in the sector, through both public and private investments.
 Climate change poses a daunting challenge to produce enough food for the increasing population in the face of decreasing resources. It is, therefore, imperative for the smallholder production system to adapt to climate change while making agriculture more sustainable and rural livelihoods more resilient. It is felt that reactive adaptations like improving the markets, changing agricultural policies, enhancing social protection and preparing for disasters have their limitations. Therefore, more adaptive improvements like Climate-Smart Agriculture (CSA) are required instead.
In a smallholder dominated agricultural production scenario, group approaches, viz. farmer producer organisations (FPOs)/ farmer producer companies (FPCs), farmers’ federations, etc.,  with a focus on diversified activities, viz., agricultural crops, horticulture, dairy, fisheries, bee-keeping and off-farm sector, could lead to profitable and sustainable agricultural production systems. This is possible through the development of efficient and inclusive agriculture value chains. Agricultural marketing reforms in the form of enactment of new model APMC act by states, and electronic National Agriculture Market (e-NAM) would be a win-win situation for farmers, traders, processors, retailers, and consumers. Agricultural policy also needs to focus on creating the right ecosystem for opening up of the export market for agricultural produce of small and marginal farmers.
Enabling environment for agricultural sustainability could be created through massive investment in irrigation, with a focus on water-use efficiency, and value chain infrastructure, easy availability of credit (especially investment credit), and risk mitigation through wider coverage and effective implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY), and futures and options trading by FPOs in commodity markets. Effective and efficient implementation of these transformative strategies, could lead to sustainability of Indian agriculture, and facilitate the achievement of Government of India’s goal of “Doubling of farmers’ income by 2022”.