Budget 2024, 4 Strategies for Boosting the Agriculture and Food Sector in India

January 28 (S. Kumar). The estimated Gross Value Added (GVA) for the agriculture and allied sectors in the financial year 2023 is approximately 275 billion US dollars, contributing about 15% to the country's total GVA. Over the five-year period ending the financial year 2023, this sector has shown a growth rate of around 4% Compound Annual Growth Rate (CAGR).

In the financial year 2023, the government allocated approximately 1.9% of the total central budget to the agriculture and allied sectors and around 1.3% was earmarked through the Pradhan Mantri Kisan Yojana to support small and marginal farmers. A significant portion, about 8.3%, was directed towards major subsidies, including food, fertilizers, and petroleum subsidies.

Due to limited access to finance and technology, farmers lack the resources to increase productivity or effectively deal with adverse weather conditions, pests, and diseases. Insufficient storage, improper handling, damage by pests, and the fundamental complexities of the transportation infrastructure have made the situation even more intricate, resulting in post-harvest losses. Issues related to damaged and complex supply chains associated with various middlemen have further intensified this challenge.
The issue of food loss has serious economic and environmental implications, with India's food loss estimated to be around 4.5%, as reported by food and agriculture organizations.

Sector Expectations and Recommendations:
1. Enhance India's food processing sector for sustainable development.
2. Reduce post-harvest losses by improving the fundamental infrastructure.
3. Promote the adoption of agricultural technology.
4. Boost agricultural exports.