To attain the goal of doubling farmers’ earnings, the Economic Survey proposed a wide range of initiatives for the agricultural sector, including policies to stimulate crop diversification and associated activities such as fisheries and dairy, as well as policies to increase private investment in the sector. Support for startups was indicated in the survey as a way to stimulate innovation in the area.
It also emphasised the importance of prioritising the use of new technology, including as drones and AI-based decision support systems, as well as advocating for more agriculture research and organic farming. “Focus should be on the use of new technologies, such as drones and AI-based decision support systems, as well as the decrease of chemical fertiliser use and the use of low-cost organic inputs, as well as supporting startups for innovation,” according to the study.
According to the report, the sector has mostly resisted the Covid-19 shock. The farm sector is predicted to rise 3.9 percent in the current fiscal year, compared to 3.6 percent in 2020-21, according to the first advance projections of national revenue released last month.
As farm holdings have fragmented, the poll urged a greater focus on exploiting the potential of linked businesses, pointing out that animal husbandry, dairying, fisheries, and labour have all contributed improve earnings. From 0.592 hectares in 2013 and 0.725 hectares in 2003, the average size of family ownership holdings declined to 0.512 hectares in 2019.
In light of this fragmentation, it was suggested that a greater emphasis be placed on the development of small farm technologies and the growth of non-farm enterprises. It also provided a compelling case for crop diversity. “While the government has accepted the use of MSP (minimum support price) as a signal to encourage crop diversification, state governments must also take concerted measures to facilitate the shift in order to achieve the goal of doubling farmers’ income,” according to the poll.
According to the Situation Assessment Survey (SAS) 2021, the average monthly income per agricultural household, calculated using the paid out expenses approach, is Rs 10,218 compared to Rs 6,426 in the previous SAS report from 2014.
It urged for a planned and targeted approach to secure higher public and private investment in agriculture, citing a direct correlation between capital investments and the sector’s growth rate.