Lok Sabha polls: Agriculture will be in focus for the next government

Agriculture has been a clear focus of the current government, evident from the intent to double farmers’ income. The performance in the past five years serves as a directional template for the new government. Business Standard looks at some of the key areas

Oversupply 

Exports can supplement a strong MSP policy in an environment of over production. The 50% rise in MSP for major crops, though comme­ndable, has not realised in a better price realisation to farmers, as wholesale prices remain subdued. Farm exports still haven’t reached the best ever  recorded figure in 2012-13 at over $42 bn

Farm exports

Despite rising foodgrains production, share of agriculture in the economy is falling gradually. A long-term solution to catalyse marketing of oversupply needs to find a place in policy implementation

Irrigation

Of the 99 incomplete irrigation projects slated to be completed by December 2019, only 31 are complete according to latest available data. Agriculture experts put the number of projects where the dam’s command area is developed at just six. These need to be expedited 

Agri-Marketing 

Online marketing platform e-NAM needs to become mainstream. Currently, volume traded on the platform is growing sluggishly. Not just the rural haats, which are at a nascent stage, but even APMC mandis need to be provided with necessary infrastructure

Crop insurance

Against a farmer universe of around 130 mn, about  35-40 mn farmers get insured under the national crop insurance scheme. Its coverage needs to be expanded to all needy farmers as soon as possible 

Sustainable food security

FCI is the nodal agency that provides food security to the poorest in India. Despite robust budgetary support, FCI’s loans from National Small Savings Fund are bulging every year in order to pay arrears to farmers. Ensuring food security would need strong financial back up in future