Continuing from last week - 3yr
transformation agenda - did it work?
The NITI Aayog's 3yr agenda for transformation for agriculture
sector recognized that "Enhancing agricultural productivity requires of
efficiently using inputs, introducing new technologies and shifting from low to
high value commodities."
The data available for first two years (FY18 and FY19),
indicates that little progress has been made in implementation of the proposed
transformation agenda. The following points are pertinent to note in this
context:
(a) The share of
agriculture sector in total GVA has fallen from 17.9% in FY17 to 16% in FY19.
In Fy15, it was 18.2%.
(b) The horticulture crops'
production grew from 300643MT in FY17 to 313851MT in FY19, an average annual
growth rate of ~2%, much lower as compared to ~3.5% growth seen food grain
production in FY18. Fruit production and productivity both fell in FY19. The
productivity of vegetables, flower and plantation crops also declined in FY19.
(c) The growth in total
GVA in agriculture and allied sectors moderated from 7.9% in FY17 to 6.9% in
FY18 and further to 6.5% in FY19. Within this the agriculture, forestry and
fishing GVA growth fell from 6.3% in FY17 to 2.9% in FY19.
(d) The share of
expenditure on agriculture research and education in agriculture GVA fell to
0.32% in FY18 from 0.36% in FY17, before recovering to 0.37% in FY19. By any
standard this allocation to research and education is dismal given the poor
productivity levels and urgent need for transformation in agriculture sector.
(e) The investment
agriculture sector fell from 15.6% of Agriculture GVA in FY17 to 15.2% in FY18.
(f) The MSP for staple
crops has been increased by 6% to 19% during FY19. Paddy saw an increase of
13%, Wheat 6%, Soyabeen 11% and Maize 19%. UP government has not increased SAP
for sugarcane for sugar season 2019-2020. To double in 5year, the farmers' income
must grow at a compounded rate of 14.5%. As of now, the target looks quite
challenging.
(g) The
production/availability of certified/quality seeds improved less than 5% from
3802904MT in FY17 to 3988899MT in FY19.
(h) India met 56.57% of its
domestic demand for vegetable oil through imports in FY17. In FY18 the share of
imports had risen to 59.31%.
(i) The consumption of
fertilizers increased by 2.4% to 265.91 lac ton in FY18, though it was still
lower than the consumption of 267.53 lac ton in FY16. Urea production fell from
306.35 lac ton in FY16 to 298.94 lac ton in FY18.
(j) The funds released
under the flagship Soil Health Management (SHM) decreased from Rs95.5cr in Fy17
to Rs71.67 crore in FY19. In FY18 the funds released were just 41.18crors.
It can be reasonably construed from above selective data points
that the government is lagging behind in implementation of its ambitious agenda
for transformation of agriculture sector.
(Data Sources: Annual Report FY19, Department of Agriculture,
Cooperation and Farmers Welfare, Economic Survey for FY19 and CEIC)
...to continue tomorrow
Nice Informative Blog having nice sharing.. Agricultura
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