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Ease of Doing Agribusiness Index: Would it be a game changer?

In a country where agriculture is seen as a non-remunerative economic activity by the majority of cultivators, the very idea of Ease of Doing Agribusiness Index evokes an element of surprise for sure.

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Published : Mar 21, 2019, 11:58 AM IST

Updated : Mar 21, 2019, 1:09 PM IST

Mumbai: Similar to State-wise Ease of Doing Business, the Government has unveiled Agribusiness Index to rank States on the basis of ease of doing agribusiness. In a country where agriculture is seen as a non-remunerative economic activity by the majority of cultivators, the very idea of Ease of Doing Agribusiness Index evokes an element of surprise for sure.

How Ease of Doing Agribusiness Index is measured?

The national think tank, National Institution for Transforming India (NITI Aayog), has developed the following six major parameters to rank States.

Ease of Doing Agribusiness Index parameters and their weightages

Six parameters and their weightages are as given below -

  1. Marketing reforms (25%)
  2. Reducing the cost of input (20%)
  3. Governance and land reforms (20%)
  4. Risk mitigation (15%)
  5. Increase in production and productivity (10%)
  6. Investment in agriculture (10%)

What are the benefits of the index?

The introduction of such an index will develop an interpersonal ecosystem in agribusinesses sector in respective States. It will develop a healthy competition between the States to create a healthy environment for agribusinesses that will encourage more investment, innovation skills, intellectual property safeguards, etc. It would also bring agriculture into the mainstream and eventually impact the farmers income as well as rural economy and address the problem of growing inequalities in the economy.

Challenges ahead

It is difficult to compare all the states in a given parameter, for example there are states like Maharashtra, Telangana which are already progressing in agriculture in terms of investment, processing industry and irrigation etc. Whereas states like Bihar have a different situation.

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Secondly, every State has different agro-climatic condition, topography, cropping pattern, infrastructure development and therefore these parameters cannot be applied universally and uniformly.

Thirdly, experts strongly believe that the government should come up with some more parameters for the assessment of ease of doing agribusiness such as training to farmers and young entrepreneurs, awareness creation on micro financial management, etc.

Despite these drawbacks, the move is a welcoming step in a country like India where majority of the population is dependent on agriculture. Without agribusiness development, Indian agricultural economy will not reach its potential.

Last Updated : Mar 21, 2019, 1:09 PM IST

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