Indian agriculture is still a key sector of the country’s economy.
India’s agricultural sector
provides a living for more than 58 per cent of its residents. An indication of the importance of
the agricultural sector in India is the fact that 57 per cent of the land is designated for crop
cultivation, compared with a global share of approximately 12 percent. While facing
numerous constraints, Indian agriculture has come a long way since Independence. The
evolution of agriculture policy in India after independence has been shaped by various
factors, including the country's socio-economic conditions, agricultural productivity
challenges, technological advancements, and shifting political priorities.
1. Pre-Green Revolution (1947-1960s): In the initial years after independence, India
faced food shortages and a stagnant agricultural sector. The government focused on
land reforms to address inequities in land distribution and enhance agricultural
productivity. Initiatives such as the Zamindari Abolition Act, Tenancy Acts, and Land
Ceiling Acts aimed to redistribute land to landless farmers and promote more
equitable access to resources also to eliminate land intermediaries.
2. Green Revolution (1960s-1970s): The Green Revolution, which began in the 1960s,
marked a significant shift in India's agriculture policy. It involved the introduction of
high-yielding varieties (HYVs) of seeds, along with the use of chemical fertilizers,
pesticides, and irrigation technologies. The government played a proactive role in
promoting the adoption of modern agricultural practices through initiatives such as
the Intensive Agricultural District Program (IADP) and the Agricultural Prices
Commission. The Green Revolution led to a substantial increase in food grain
production, transforming India from a food-deficit to a food-sufficient nation. Another
major policy decision was the nationalization of major commercial banks to enhance
credit flow to the agricultural sector. Several other financial institutions, for example
the National Bank for Agriculture and Rural Development (NABARD) and Regional
Rural Banks (RRBs), were also established to achieve this objective. The cooperative
credit societies were also strengthened.
3. Post-Green Revolution (1980s-1990s): In the 1980s and 1990s, India witnessed a
shift towards policies aimed at liberalizing the economy and reducing government
intervention in agriculture. This period saw the dismantling of agricultural price
controls and subsidies, as well as the introduction of market-oriented reforms.
However, concerns arose regarding the sustainability of intensive farming practices,
environmental degradation, and disparities in agricultural development between
regions and socio-economic groups.
4. Liberalization and Structural Reforms (1990s-present): The 1990s onwards saw
further liberalization of India's economy, including the agriculture sector. The
government introduced measures to encourage private investment, improve
infrastructure, and facilitate agricultural trade. Initiatives such as the National
Agricultural Policy (2000) and the National Food Security Mission (2007) aimed to
address issues of food security, agricultural diversification, and farmer welfare.
Additionally, schemes like the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
focused on enhancing water management and irrigation infrastructure.
5. Recent Developments: In recent years, there has been increasing emphasis on
sustainable agriculture, climate resilience, and income support for farmers. The
government launched schemes such as the Pradhan Mantri Kisan Samman Nidhi
(PM-Kisan) to provide direct income support to small and marginal farmers. Other
initiatives like the Soil Health Card Scheme, Paramparagat Krishi Vikas Yojana
(PKVY), and Rashtriya Krishi Vikas Yojana (RKVY) promote organic farming, soil
health management, and crop diversification.
NATIONAL AGRICULTURE POLICY 2000:
In 2000, the Government of India, for the first time, published a comprehensive agricultural
policy statement — the National Agricultural Policy (NAP) that sets out clear objectives and
measures for all the important sub-sectors of agriculture.
Over the next two decades, this policy aims to attain an agricultural growth rate in excess of 4
per cent per annum. The main elements of the policy include:
• Efficient use of natural resources, while conserving soil, water and biodiversity.
• Growth with equity, i.e. growth which is widespread across regions and farmers.
• Growth that is demand-driven and caters to the domestic markets and maximizes benefits
from exports of agricultural products in the face of challenges arising from economic
liberalization and globalization.
• Growth that is sustainable technologically, environmentally and economically.
The policy also seeks to utilize large areas of wasteland for agriculture and afforestation.
Moreover, the NAP calls for special efforts to raise crop productivity to meet the growing
domestic demand for food and agricultural products. The major focus is on horticulture,
floriculture, roots and tubers, plantation crops, aromatic and medicinal plants and bee-
keeping. Higher emphasis is also placed on raising the production of animal and fish
products.
SCHEMES:
E-NAM (Electronic National Agriculture Market)
E-NAM (Electronic National Agriculture Market) is a pan-India electronic trading platform
for agricultural commodities. It was launched by the Government of India in 2016 and is
operated by the National Agricultural Cooperative Marketing Federation of India (NAFED).
E-NAM provides a single platform for farmers to sell their produce to buyers from all over
the country. This helps farmers to get a better price for their produce and also helps to reduce
the risk of price fluctuations. E-NAM also provides farmers with access to a wider range of
buyers, which can help them to increase their sales.
Pradhan Mantri Krishi Sinchai Yojana (PMKSY)
The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) is a central sector scheme launched in
2015 with a vision to provide secure and timely irrigation to 100 million hectares of
agricultural land by 2024. The scheme aims to achieve this through a combination of
measures, including:
Construction of new canals and dams
Renovation and modernization of existing canals and dams
Promotion of micro-irrigation
Groundwater recharge
Capacity building of farmers
The PMKSY has been a major success, with over 30 million hectares of land being irrigated
under the scheme as of March 2023. The scheme has also helped to improve the productivity
of crops, increase farmers' incomes, and reduce the risk of crop failure.
The PMKSY is a major step forward in the government's efforts to transform the agriculture
sector and make it more sustainable and resilient. The scheme is expected to play a major role
in ensuring food security for India in the years to come.
Here are some of the key benefits of the PMKSY:
Increased crop productivity
Increased farmers' incomes
Reduced risk of crop failure
Improved water conservation
Improved environmental sustainability
Enhanced rural livelihoods
The PMKSY is a comprehensive and ambitious scheme that is making a real difference to the
lives of millions of farmers in India. The scheme is expected to play a major role in
transforming the agriculture sector and making it more sustainable and resilient in the years
to come.
Paramparagat Krishi Vikas Yojana (PKVY)
The Paramparagat Krishi Vikas Yojana (PKVY) is a central sector scheme launched in 2007
with a vision to promote traditional agriculture and enhance farmers' income. The scheme
provides farmers with training, inputs, and assured purchase guarantee for traditional
agriculture.
Under the PKVY, the government provides farmers with training on:
Traditional agricultural methods and practices
Use of inputs for traditional agriculture
Information about institutions that provide training in traditional agriculture
The government also provides farmers with inputs for traditional agriculture, such as:
Seeds
Fertilizers
Pesticides
The government also provides farmers with an assured purchase guarantee for their produce,
which means that the government will buy their produce at a pre-agreed price.
The scheme is expected to play a major role in making Indian agriculture more sustainable
and resilient in the years to come.
Here are some of the key benefits of the PKVY:
Increased income for farmers
Increased productivity of crops
Improved environmental sustainability
Enhanced rural livelihoods
The PKVY is a comprehensive and ambitious scheme that is making a real difference to the
lives of millions of farmers in India. The scheme is expected to play a major role in
transforming the agriculture sector and making it more sustainable and resilient in the years
to come.
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme launched by the
Government of India in 2016. The scheme provides insurance coverage to farmers against
crop losses due to natural disasters, such as drought, flood, hailstorm, and pest infestation.
The scheme is mandatory for all farmers who cultivate notified crops in notified areas. The
premium for the scheme is shared between the government and the farmers. The government
bears 50% of the premium for small and marginal farmers and 25% of the premium for other
farmers.
Under the scheme, farmers are insured against crop losses up to 100% of the insured value.
The insured value is the market value of the crop at the time of harvest.
To claim insurance under the scheme, farmers need to report crop losses to the insurance
company within 30 days of the loss. The insurance company will then assess the loss and pay
the farmer the insured amount.
The PMFBY is a comprehensive crop insurance scheme that provides much-needed financial
assistance to farmers in the event of crop losses. The scheme has been praised for its
coverage, affordability, and ease of claim settlement.
The PMFBY is a significant step forward in the government's efforts to provide financial
security to farmers. The scheme is expected to play a major role in reducing the risk of crop
losses and improving the income of farmers.
PM-KISAN (Kisan Samman Nidhi) Yojana
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme is a government of India
scheme that provides financial assistance of ₹6,000 per year to eligible small and marginal
farmers, in three equal installments of ₹2,000 each. The scheme was launched on February
24, 2019, and is expected to benefit about 125 million farmers.
To be eligible for the scheme, a farmer must:
Be an Indian citizen.
Own cultivable land.
The land holding should not exceed 2 hectares.
The annual income of the farmer's family should not exceed ₹2 lakh.
The benefits of the PM-KISAN scheme are:
It will help to increase the income of farmers.
It will help farmers to grow and sell their crops.
It will help farmers to become self-reliant.
It will help to reduce poverty among farmers.
The PM-KISAN scheme is a significant welfare scheme that will help to improve the lives of
farmers by providing them with financial assistance.
PM-KISAN Maan Dhan Yojana
The Pradhan Mantri Kisan Maan Dhan Yojana (PM-Kisan-MKY) is a pension scheme for
farmers in India. It was launched by Prime Minister Narendra Modi on 15 August 2019. The
scheme is aimed at providing a monthly pension of Rs.3,000 to farmers who are at least 18
years old and have less than 2 hectares of land. To be eligible for the scheme, farmers must
have a Jan Dhan account and aadhaar card.
The scheme is funded by the central government and the state governments. The central
government will contribute Rs.2,000 per month to the pension fund, while the state
governments will contribute Rs.1,000 per month. The pension will be paid to farmers on a
monthly basis.
The scheme is a welcome step by the government to provide social security to farmers. It will
help to improve the lives of farmers and their families.
Here are some of the benefits of the PM-Kisan-MKY scheme:
It will provide a monthly pension to farmers.
It will help to improve the lives of farmers and their families.
It will reduce poverty among farmers.
It will encourage farmers to stay on their land.
It will help to increase agricultural production.
The PM-Kisan-MKY scheme is a significant step by the government to improve the lives of
farmers. It is a well-designed scheme that will have a positive impact on the agricultural
sector.
Essential Commodities Act, 1955 – Amendments
The Essential Commodities Act, 1955 is an Act of the Parliament of India that gives the
central government the power to regulate the production, supply, and distribution of essential
commodities. The Act was amended in 2020 to deregulate most of the commodities that were
earlier under its purview.
The following are the key amendments made to the Essential Commodities Act, 1955 in
2020:
Deregulation of most commodities: The Act was amended to deregulate most of the
commodities that were earlier under its purview. This includes cereals, pulses,
oilseeds, edible oils, onions, potatoes, fruits, vegetables, milk, eggs, meat, and fish.
Power to regulate supply: The central government retains the power to regulate the
supply of commodities in case of an emergency or if there is a threat to the security of
the country.
Power to impose stock limits: The central government can impose stock limits on
commodities if it is necessary to prevent hoarding or profiteering.
Exemption from stock limits: The central government can exempt certain entities
from stock limits if it is necessary to promote the interests of consumers or to ensure
the availability of commodities at reasonable prices.
The amendments to the Essential Commodities Act, 2020 are a welcome step towards
liberalizing the Indian economy. They will help to reduce the government's control over the
economy and promote competition. This will lead to lower prices for consumers and a more
efficient allocation of resources.
Challenges of agricultural reforms in India
The challenges of agricultural reforms in India include:
Political will: Agricultural reforms often require a strong political will to implement
them. This is because they can be controversial and can displace farmers or harm the
environment.
Capacity of the agricultural sector: Agricultural reforms also require the capacity of
the agricultural sector to adapt to change. This means that farmers need to be able to
adopt new technologies and practices, and that the agricultural sector needs to be able
to manage the risks associated with change.
External factors: Agricultural reforms can also be affected by external factors such
as weather conditions, crop diseases, and fluctuations in market prices.
Impact of agricultural reforms on the Indian agriculture
The Indian government has implemented a number of agricultural reforms in recent years.
These reforms are aimed at making the agricultural sector more competitive and efficient.
Some of the key reforms include:
The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act,
2020: This Act allows farmers to sell their produce to anyone they want, without
having to go through the government-controlled APMCs (Agricultural Produce
Market Committees). This will give farmers more freedom and choice in selling their
produce.
The Essential Commodities Act, 2020: This Act has been amended to deregulate
most of the commodities that were earlier under its purview. This will reduce the
government's control over the agricultural sector and promote competition.
The Electricity (Amendment) Act, 2020: This Act allows farmers to generate and
sell their own electricity. This will help farmers to save money on their electricity bills
and become more self-sufficient.
The impact of these reforms on Indian agriculture is still being debated. Some experts believe
that the reforms will lead to higher prices for consumers and will benefit big businesses at the
expense of small farmers. Others believe that the reforms will lead to lower prices for
consumers and will benefit all farmers.
Throughout these phases, India's agriculture policy has evolved to address the changing needs
and challenges of the sector while striving to ensure food security, livelihood support for
farmers, and sustainable agricultural development. However, persistent issues such as farmer
indebtedness, land degradation, water scarcity, and market access barriers continue to pose
significant challenges to India's agriculture sector.