It highlighted the transformation in India’s agri-food system over the past six decades.
Structural Transformation in India’s Agri-food System
- From Food-Insecure to Food-Surplus Nation: Due to green revolution, input subsidies and minimum support prices.
- Contribution in Economy: Agriculture’s contribution to national income decreased from 43% to 18%, however, workforce share declined slowly from 74% to 46%.
- Landholdings Fragmentation: Proportion of marginal holdings (≤1 hectare) rose from 51% to 68%, and average size shrank from 2.28 to 1.08 hectare.
- Diversification: Share of animal husbandry and fisheries in agricultural GVA increased to 31% and 7% in 2022-23.
Challenges to Agri-food System Transformation
- Declining agricultural land: Due to population growth, urbanization and industrialization.
- Unbalanced use of fertilizers: Due to differential subsidy rates, low nutrient use efficiency and regional disparities.
- Inefficient water use: Overexploitation of groundwater and low water use efficiency.
- Climate change: Nearly 25% reduction in agricultural productivity growth owing to extreme climate events.
- Others: Underdeveloped markets, credit and value chains, Cereal-centric policies etc.
Recommendations for Sustainable Agri-Food System Transformation
- Water Management: Promote rainwater harvesting, groundwater recharge and micro-irrigation.
- Reforms: Phasing out electricity subsidies, using nano fertilizers and sustainable practices like crop rotation, intercropping etc.
- Others: Invest in agricultural R&D, strengthen market infrastructure and value chains, reform agricultural price policy etc.
