Amid grim economic scenario, agriculture emerges as ray of hope

Vibha Sharma

Tribune News Service

New Delhi, September 1

Amid a very grim economic scenario in the country, the agriculture sector has emerged as a ray of hope primarily due to positive climatic conditions, the ground situation and some timely action by the government.

According to the figures released yesterday, all GDP segments witnessed major contraction in the April-June quarter of 2020 barring agriculture which managed to register a growth of 3.4% because of nature and early opening up of the sector to facilitate procurement and sowing in the Covid lockdown.

Experts say figures prove agriculture is the only sector that can reboot the Indian economy. However, things need to change and fast because the way the “potential power house of economic growth” is being treated or managed currently, the gains may have limited and even minuscule. In any case, good harvest has not translated in increased farmers’ income because of chocked and fragmented supply chain, they add

Calling for a “new normal” in the sector, agriculture policy expert Devinder Sharma says India must learn from the debacle and give agriculture its rightful place in the economy. “Agriculture is the only sector that performed well but gains also have to be equal for farmers.”

“Agriculture is the only sector that can reboot the economy.  The answer to both economy and climate change is sustainable agriculture and for this we need a new normal, an economic model based on our (India’s) requirements with the sector receiving equal attention like other GDP segments.  

“We cannot sacrifice agriculture for the sake of industrial growth. It has a huge role to play in employment generation which so far we have failed to understand. If agriculture was performing at the level of other sectors had been there would be food riots in the country,” says Sharma.  

According to agriculture expert Sudheer Panwar, not only agriculture production remained neutral to the lock-down it also registered impressive growth (of 3.4%) when service and industry nosedived, “but to expect that agriculture production will make up the losses of industry and services sector is exaggeration because its share in the GDP is mere 15.96%”.  

“One of the reasons for good harvest is favourable climatic conditions and good monsoon, which is driver of agriculture in 60% of total crop area, however, good harvest could not be translated to increased farmers’ income because of chocked/fragmented supply chain. Horticulture and perishable produce could not reach market and farmers had to plough it in fields or throw on roads. 

“The Central Government stepped up MSP purchase specifically wheat and paddy in UP, Punjab and MP that provided some relief to farmers. The flood situation in Bihar, Assam and other areas, locust in Rajasthan, spread of Covid-19 in rural areas may affect future prospects which look bright because of good climatic conditions,” Panwar adds. 

Meanwhile, the current estimate includes the agricultural production for the Rabi season, including dairy, fishery and poultry. In the kharif season, acreage has already surpassed recent records. 

The sector also attracted some private investments in July-August. In addition reverse migration and uncertainty of future livelihood may have also encouraged improvement in the sector.

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