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Economic Survey 2024-25: Agriculture Sector Shows Growth During FY 17 To 23

The Kharif foodgrain production in 2024 is projected to reach 1647.05 Lakh Metric Tonnes (LMT), an increase of 89.37 LMT compared to the previous year.

Economic Survey 2024-25: Agriculture Sector Shows Growth During FY 17 To 23
Representational image (ANI)

By ETV Bharat Business Team

Published : Jan 31, 2025, 3:50 PM IST

New Delhi: The Economic Survey 2024-25 shows robust growth in the agriculture sector, averaging 5 per cent annually from FY-17 to 23, demonstrating resilience despite challenges.

Union Finance Minister Nirmala Sitharaman on Friday tabled the Economic Survey in Lok Sabha. The highlights of the survey are the agriculture sector recorded a growth rate of 3.5 per cent in the second quarter of the 2024-25 FY, and this performance represents a recovery compared to the previous four quarters, during which growth rates varied from a modest 0.4 per cent to 2.0 per cent.

As per the Economic Survey, the kharif foodgrain production in 2024 is projected to reach 1647.05 Lakh Metric Tonnes (LMT), which is an increase of 89.37 LMT compared to the previous year. Agricultural income has increased at 5.23 per cent annually over the past decade, the survey adds.

According to the Economic Survey, as a major global cereal producer, India accounts for 11.6 per cent of the world’s total output. However, crop yields in the country are considerably lower compared to those of other leading producers, underscoring the need for productivity improvements. The crop sector has experienced a modest compound annual growth rate (CAGR) of 2.1 per cent, from FY 13 to FY 22.

Crop Production:

Despite the increase in crop production, further enhancements in productivity across various crops and regions are vital for boosting performance and positively influencing farmers' incomes.

Seeds-Quality:

The adage 'As you sow, so shall you reap' effectively reflects the significance of seed quality and the accessibility of seeds in sufficient quantities by farmers in promoting healthy crop growth. In the 2023-24 seasons, ICAR produced 1.06 lakh quintals of breeder seeds encompassing 1,798 varieties across 81 crops for future multiplication.

Rainfall and Irrigation system:

Precipitation is crucial in the global water cycle, serving as a primary source for freshwater replenishment, vital for various ecosystems and human activities. The repercussions of climate change on rainfall patterns are profound, particularly concerning agricultural practices that rely heavily on consistent and predictable weather conditions. A substantial portion of the agricultural land relies on rain-fed systems, making it especially susceptible to fluctuations in precipitation. More than two-thirds of India’s agricultural land faces the threat of drought, with national estimates indicating a 35 per cent probability of drought occurrences.

Minimum Support Price:

The Economic Survey states that MSP for essential crops, such as wheat rice, pulses, oilseeds, and nutria-cereals acts as a safety net for farmers, reassuring them of a guaranteed minimum price for their crops for the government. Union Budget of 2018-19, the government decided on the principle of fixing MSP at a level of at least 1.5 times the weighted average cost of production for these crops.

The government has raised the MSP for nutri-cereals (Shree Anna), pulses, and oilseeds as part of these initiatives. For the fiscal year FY25, the MSP for arhar and bajra has been increased by 59 per cent and 77 per cent over the weighted average cost of production, respectively. Moreover, the MSP for Masur has risen by 89 per cent, while rapeseed has seen an impressive increase of 98 per cent.

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