Context:
India must shift from a consumption-led to an investment-led agriculture policy to ensure sustainable farmer income, boost productivity, and achieve the goal of Viksit Bharat (Developed India) by 2047.
Current Policy Issues Identified
Overdependence on Short-Term Support Measures
- Direct Benefit Transfers (DBT)
- Minimum Support Price (MSP)
- Fertiliser subsidies
Limited Capital Spending
- Infrastructure-related schemes under MoAFW and MoFPI: ~₹20,000 crore
- FPO promotion: < ₹600 crore
Missed Opportunity
- Budget allocations are tilted more towards increasing disposable income (e.g., personal income tax relief) than agricultural capital formation
Key Recommendations
- Shift Towards Investment-Led Growth
- Move away from consumption-heavy schemes to:
- Watershed management
- Micro-irrigation systems
- Post-harvest infrastructure
- Mechanisation
- Land aggregation and consolidation
- Focus on Infrastructure and Value Chains
- Encourage PPPs in food processing clusters
- Strengthen supply chains to reduce post-harvest losses
- Enhance support for FPOs as a means of aggregation, extension, and quality input supply
- Enable Systemic Reforms
- Revisit and implement reformed farm laws
- Phase out the dominance of APMCs
- Foster export-oriented FDI in agribusiness
Key Data Points
- Total Agriculture-Related Outlay (2024–25): ₹5.3 lakh crore (~11% of total Union Budget)
- Infrastructure Outlay (MoAFW + MoFPI): ~₹20,000 crore
- Credit and Insurance Schemes: ~₹35,000 crore
- FPO Promotion Allocation: < ₹600 crore
Identified Systemic Constraints
- Fragmented land holdings
- Inadequate access to quality seeds, inputs, and advisory
- Poor credit and insurance penetration
- Inefficient post-harvest handling and storage
Vision for Viksit Bharat 2047
- Aim: 8% annual growth in agriculture
- Need: Focus on efficiency, competitiveness, and sustainability
- Policy must prioritize investment in capacity building over revenue transfers
