Economic Survey 2024-25: Sustainable Agriculture

Economic Survey 2024-25: Sustainable Agriculture for a Sustainable Farm Sector in India Fostering agricultural growth climate resilience and policy reforms.

Steady Farm Growth

• The projection here is to maintain 5% annual growth in agriculture over the foreseeable future with the agriculture sector retaining its 20% GVA share which will absorb surplus labor by increasing output per worker and per hectare.

Agriculture CAGR in Value Output 2011-2022

• Fisheries: 8.7%
• Meat & eggs: 7.5%
• Livestock & milk: 5.8%
• Pulses: 5.0%
• Cereals & oilseeds: ~2.0%

Policy Reforms for Balanced Crop Production

• Calls for promoting noncereal outputs particularly to discourage the overproduction of cereals and promote the production of pulses and edible oils.
• Seeks to turn Indian agriculture free empowered and emboldened by moving away from water intensive crops and investing more in irrigation and R&D.
• Highlights that agricultural income has grown at 5.23% annually over the past decade, compared to 6.24% in non-agricultural sectors.

Climate Change Agricultural Productivity Risks

• Studies have shown that droughts and heatwaves are more severely damaging to farm productivity than floods and cold waves.
• A 2°C temperature rise and 7% increase in rainfall by 2099 could reduce Indian agricultural productivity by 8-12%.
• Draws attention to lower tail dependence which implies that there is a trend of high association between extreme water deficit rainfall events and massive crop damage.

4. Irrigation & Water Efficiency Solutions

• Drip irrigation has proven effective, with a Tamil Nadu study showing:
  • Water savings: 39-55% compared to flood irrigation.
  • Yield increase: 33-41% due to targeted water delivery.
  • Profit boost: 52.92-114.50%, varying by crop (e.g., brinjal, mango).
• Calls for greater adoption of micro-irrigation to improve water efficiency and climate adaptation.

Extreme Weather Food Inflation

• Climate related disturbances are directly now connected with inflationary forces in the markets of agriculture.
• Between 2022-2024, India experienced heatwaves on 18% of days, compared to 5% in 2020-2021, highlighting escalating climate risks.

Investment in ClimateResilient Agriculture

• Stresses the need for higher R&D investments in:
• Climate-resistant crop varieties.
• Advanced farming techniques for sustainability.
• Diversification into high-yield, climate-resilient crops.
• Micro-irrigation expansion to mitigate water stress.