India’s Farm Sector Growth Driven by Livestock and Fisheries, Crop Growth Lags: NITI Aayog Report

(Source: Indian Express; Section: Explained; Page: 14)

Analysis of News:       

Subsector Performance Variations

• Agriculture growth under the Modi government has been primarily driven by the livestock and fisheries sectors, which recorded annual growth rates of 5.8% and 9.2%, respectively.
• In contrast, crop output grew by only 2.3%, lower than the 3.4% growth seen during the UPA period. Non-horticulture crops, such as cotton, jute, and tobacco, saw minimal growth, whereas poultry, fisheries, and horticulture performed better.

Regional Disparities

• Thirteen states, including Madhya Pradesh and Telangana, achieved over 4% annual agriculture growth from 2014-2023, largely due to livestock and fisheries.
• In contrast, agriculturally prominent states like Punjab, Haryana, and West Bengal saw slower growth, particularly in crop production.

Diversification and Market-Driven Growth

• The report attributes the sector’s growth to diversification into horticulture, livestock, and fisheries, driven by increasing consumer demand for protein-rich foods like vegetables, fruits, milk, and meat.
• New technologies, such as hybrid seeds and improved irrigation, have supported this shift. However, the benefits of diversification are uneven, with field crops seeing limited gains despite government support through Minimum Support Price (MSP) regimes.

Policy Implications

• The paper concludes that demand-side factors and advancements in production technology have been more effective in boosting agricultural growth than government subsidies or price interventions, especially in subsectors like livestock and horticulture.
• The need for targeted policy measures to enhance productivity in field crops remains a challenge.