What is the current state of Indian agriculture regarding climate and prices?

Indian agriculture is resilient to climate risks, but crop prices have seen a significant slide, with food prices experiencing deflationary trends.

What are the major challenges impacting Indian farm yields?

Indian soils have low organic carbon content, and crop yields lag global averages, indicating a need for improved soil health and research.

How can the Indian budget help revitalize the rural sector?

The budget can help by allocating funds for price support schemes, improving soil health through various programs, increasing agricultural research funding, and revamping subsidies.

Home / Business and Economy / India's Farms Fight Climate, Seek Budget Boost

India's Farms Fight Climate, Seek Budget Boost

30 Jan

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Summary

Food production rose 2.3%, but crop prices slid significantly.
Soil organic carbon is critically low, impacting yields.
Research funding remains low despite high returns.

India's Farms Fight Climate, Seek Budget Boost

Indian agriculture, employing 46% of the workforce, is showing resilience against climate change but is hampered by falling crop prices. Food production saw a 2.3% increase in the last kharif season, yet retail food prices experienced deflation, averaging 2.7% lower year-on-year until December. This situation critically impacts farmers, as most crop prices have fallen below government minimum support prices.

Improving soil health is essential, as Indian soils have low organic carbon content (0.3%-0.6%). Despite a soil health card scheme launched in 2015, soil conditions continue to deteriorate. Programs like the soil health scheme and national mission on natural farming could help remedy this and enhance food quality.

Agricultural research funding, at less than 0.5% of the farm sector GDP, needs a substantial increase. Studies indicate a 14-fold return on investment in agricultural research, crucial for addressing crop-yield gaps and climate risks.