Chapter 6: Agriculture and Food Management: Raising Productivity, Securing Incomes and Ensuring Food Security

Introduction

• Contributes nearly one-fifth of India's national income at current prices, but account for 46.1 % of the country's workforce.  
• India's agriculture recorded a robust Quinquennial and a highest decadal growth of 4.4 % (more than global average). 
• This has primarily resulted from the strong performance in livestock (7.1 %) and fishing and aquaculture (8.8 %), followed by the crop sector at 3.5 % (FY16-FY25).

Chapter Precap

Overview of Agricultural and Allied Sector Performance

• Food grain production is estimated to have reached 3,577.3 lakh metric tonnes (LMT) in 2024–25. 
  • This growth has been driven by higher output of rice, wheat, maize and coarse cereals (Shree Anna). 
  • Yields of major crops like cereals, pulses, rice, maize, soybean has increased while of groundnut has decreased. 
• Horticulture sector accounts for approximately 33 % of agricultural GVA
  • In 2024-25, horticulture production reached 362.08 MT surpassing food grain production underscoring diversification to high value crops.  
  • India is world's largest producer of dry onions and ranks second in the production of vegetables, fruits, and potatoes.
• Livestock sector: During FY 15 and FY24, it recorded a strong expansion, with its GVA increasing by nearly 195 %.
• India has consolidated its status as a major global seafood supplier, exporting to over 130 countries.
• Regional disparities in Yield: E.g., Major rice producing states like West Bengal, Uttar Pradesh, Telangana, and Andhra Pradesh record yields lower than the national average.
• Challenges in productivity: 
  • Climate: E.g. According to NITI Aayog, in 15 of the 27 El Niño years (1951–2024), pulse acreage declined by 2-9 %
  • Resource constraints: land and water resources are increasingly being constrained due to rising population 
  • Input constraints: E.g. limited availability of quality seeds, 

Drivers of Productivity Improvement: Policy and Institutional Interventions

• Targeted Policy Missions: National Food Security Mission (NFSM) enhanced productivity and production of Rice, Wheat, Pulses, Coarse Cereals, Commercial Crops, and Nutri-Cereals (Shree Anna).
  • In FY25, the scheme was renamed the National Food Security and Nutrition Mission (NFSNM). 
• Oilseeds: National Mission on Edible Oils-Oilseeds (NMEO-OS) and the National Mission on Edible Oils–Oil Palm (NMEO-OP) aiming for nearly 70 million tonnes by 2030-31
  • Between 2014–15 and 2024–25, the area under oilseeds increased by over 18 %, production by nearly 55 %, and productivity by about 31 %.
  • Oil palm area more than doubled over the same.
  • Domestic edible oil availability has risen from 86.30 lakh tonnes in 2015-16 to 121.75 lakh tonnes in 2023-24.
    • This has lowered the share of imported edible oil, reducing it from 63.2 % in 2015-16 to 56.25 % in 2023-24. 
• Pulses: 'Mission for Atmanirbharta in pulses' to reduce import dependency on pulses by increasing productivity
• Horticulture: Mission for Integrated Development of Horticulture (MIDH), the Horticulture Cluster Development Programme, and the Clean Plant Programme
  • These interventions have led to productivity gains, with average horticulture productivity increasing from 2019–20 to 12.56 metric tonnes per hectare in 2024–25.

Improving productivity in the Agriculture and allied sectors: The Role of Critical Inputs and Technology 

Quality Seeds

• 6.85 lakh Seed Villages were created under the Sub-Mission on Seeds and Planting Materials (SMSP). 
  • SMSP aims to ensure farmers have access to high-quality seeds by promoting seed production, processing, storage, and certification nationwide. 
• National Mission on High-Yielding Seeds launched to strengthen the research ecosystem, targeting the development and propagation of climate-resilient high-yielding varieties.

Irrigation and Water-Use Efficiency

• Gross irrigated area as a share of the gross cropped area has increased from 41.7 % in 2001-02 to 55.8 % in 2022-23.
  • Significant inter-State and inter-crop disparities persist. E.g., with irrigation coverage ranging from less than 15 % in millets and around 26 % in pulses to about 67 % in rice.
• Key Interventions: Installation of Drip and Sprinkler systems under the Per Drop More Crop (PDMC) scheme, component of Pradhan Mantri Krishi Sinchai Yojana (PMKSY). 

Soil Health and Balanced Nutrient Management 

• Fertilizer use remains inefficient, with the N:P: K ratio deteriorating (10.9:4.1:1) in recent years, largely due to price distortions favouring nitrogenous fertilisers. 
• Key Interventions: 
  • Soil Health Management (SHM) and Soil Health Card (SHC) schemes under the National Project on Management of Soil Health & Fertility, promoting integrated nutrient management by combining chemical fertilisers with organic manures and bio-fertilisers. 
    • Over 25.55 crore cards have been issued (as of Nov 2025).
  • National Soil Mapping Programme (NSMP) and the National One Soil Unified Information System (NOSUIS) to generate detailed village-level soil resource inventories.

Credit

• Ground Level Credit (GLC) disbursement stood at ₹28.69 lakh crore, surpassing the ₹27.5 lakh crore targets in FY 25.
• Share of non-institutional credit declined from 90 % in 1950 to 23.4 % in 2021-22.
• Kisan Credit Card (KCC) scheme had 7.72 crore operative accounts.
  • KCC scheme was further strengthened by the Modified Interest Subvention Scheme (MISS). 

Mechanisation and Collective Access

• Between 2014-15 and 2025-26, a total of 25,689 Custom Hiring Centres (CHCs) have been established under the Sub-Mission on Agricultural Mechanisation (SMAM). 
• Key Constraints: Fragmented landholdings and rising labour shortages continue to hinder the adoption of mechanisation. 
• Interventions Required: Strengthen collective ownership models through FPOs, PACS, and SHGs.

Technology and Input Support in Livestock, Fisheries and Aquaculture

• Progress has been made in strengthening animal health systems. E.g., nationwide Foot and Mouth Disease (FMD) control programme
• Artificial Insemination (AI) programme has expanded (annual inseminations increased from 76.23 million in 2017–18 to 88.32 million in 2024–25).  
• Government has designated specific Nucleus Breeding Centres (NBCs) to enhance the genetic quality of aquaculture species.
• Critical Input Constraint (Fodder): The Survey highlights a critical challenge regarding inputs: feed and fodder shortages, which constitute over 70 % of milk production costs.
  • The area under fodder crops is only about 4.61 % of the gross cropped area.
  • There are estimated demand supply gaps of 11–32 % in green fodder and 23 % in dry fodder. 

Infrastructure and Marketing support  

• Key Interventions: 
  • Agriculture Marketing Infrastructure (AMI) sub-scheme under the Integrated Scheme for Agricultural Marketing (ISAM). 
  • Agriculture Infrastructure Fund (AIF) was launched to strengthen farm-gate infrastructure and engage private players. 
  • National Agriculture Market (eNAM)

• Livestock sector: Animal Husbandry Infrastructure Development Fund (AHIDF)
• Fishery Sector: Pradhan Mantri Matsya Sampada Yojana (PMMSY), the Fisheries Infrastructure Development Fund (FIDF), and PM Matsya Kisan Samridhi Sah Yojana (PM-MKSSY). 
• Interventions Required: 
  • Value addition and processing capacity need to expand faster to reduce dependence on a narrow export basket.
  • Infrastructure gaps persist in post-harvest handling, cold chains, and logistics, particularly in inland and remote regions. 
  • Strengthening aquatic animal health, biosecurity, and quality standards.  

Extension services support  

• Extension services are delivered through public agencies, Krishi Vigyan Kendras, agricultural universities, private firms, and digital platforms.
  • They continue to face challenges of limited reach, staff shortages, and fragmented delivery. 
• Key Interventions: Sub-Mission on Agricultural Extension (SMAE) under the Krishonnati Yojana. 
  • Through support to State Extension Programmes Agricultural Technology Management Agency (ATMA), the government provides farmers access to the latest technologies. 

Price and Income Support

• Government announces Minimum Support Prices (MSP) for 22 mandated crops.
• 24.92 lakh farmers enrolled under the Pradhan Mantri Kisan Maandhan Yojana (PMKMY). 

Crop Insurance Support

• Key Interventions: 
  • Pradhan Mantri Fasal Bima Yojana (PMFBY), in 2024‑25, the scheme insured 4.19 crore farmers, a 32 % increase over 2022‑23. 

• National Crop Insurance Portal serves as a single source of verified information, promoting wider state adoption and increased farmer participation.
• Technological interventions: Yield Estimation System based on Technology (YES-TECH) for yield estimation, Weather Information Network and Data System (WINDS) for automatic weather stations, and automatic rain gauges, have enhanced transparency and objectivity
• Restructured Weather-Based Crop Insurance Scheme has been also launched.

Cooperatives 

• Large-scale computerisation and integration with the cooperative banking network are intended to enhance transparency and efficiency.
• Strengthened Primary Agricultural Credit Societies (PACS) by computerizing over 67,000 units and diversifying their activities into storage and input supply.
• Other initiatives: National cooperative university, the inclusion of cooperatives in school curricula, and the introduction of a National Cooperation Policy  

Promoting Sustainable Agriculture

• Key Interventions: 
  • Promoting Crop Diversification Programme (CDP) under the Rashtriya Krishi Vikas Yojana (RKVY) 
  • Organic and climate resilient farming through targeted schemes such as the Paramparagat Krishi Vikas Yojana (PKVY) for all States/UTs (except the North East) and the Mission Organic Value Chain Development for North Eastern Region (MOVCDNER).
  • Promotion of Natural Farming (NF) through the Bhartiya Prakritik Krishi Paddhati (BPKP)
  • National Mission on Natural Farming (NMNF) 

Food Processing

• It is among the largest employers in India's organised manufacturing sector, accounting for 12.91 % of total organised manufacturing employment.
• In FY25, India's agri-food exports, totalled USD 49.43 billion, accounting for approximately 11.2 % of total exports. 
  • Share of processed food exports has increased steadily, rising from 14.9 % in FY18 to 20.4 % in FY25. 
• Key Interventions: Pradhan Mantri Kisan Sampada Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing (PLISFPI), Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)

Food Management

• Stabilising prices: E.g., Open Market Sale of staple food grains
• Ensuring food and nutrition security: Distribution of fortified food, enabling greater inclusiveness through Aadhaar-based deduplication and One Nation One Ration Card (ONORC) portability, expanding direct subsidy delivery via Direct Benefit Transfer (DBT).
  • ONORC has been rolled out across all 36 States/UTs, covering nearly 80 crore NFSA beneficiaries.
• Increasing post-harvest lending:  Credit Guarantee Scheme for Electronic Negotiable Warehouse Receipt (e-NWR) based Pledge Financing (CGS-NPF). 
  • This scheme covers pledge loans extended on e-NWRs issued against agricultural and horticultural commodities, as well as the losses incurred by the bank due to credit and warehouseman risks.
• National Food Security Act (NFSA), 2013, was introduced to provide a legal guarantee of subsidised foodgrains to nearly 67 per cent of India's population. ( 75% rural and 50% urban)

Conclusion 

• Indian agriculture is entering a phase of new opportunity, supported by advances in irrigation, digital extension, climate-resilient agricultural practices, improved storage, and the strengthening of cooperatives and value chains. 

What does the Budget say? 

• Fisheries & Animal Husbandry:
  • Integrated development of 500 reservoirs and Amrit Sarovars and strengthening of fisheries value chains.
  • Support for animal husbandry entrepreneurship through credit-linked subsidies, modernisation of livestock enterprises, and formation of Livestock Farmer Producer Organisations (FPOs).
• High-Value Agriculture:
  • Promotion of coconut, sandalwood, cocoa, and cashew in coastal regions, and agar trees in the North-East.
  • Launch of a Coconut Promotion Scheme for replacement of old plantations to raise productivity.
  • A dedicated programme to achieve self-reliance in raw cashew and cocoa and develop them as global brands by 2030.
• Technological Integration:
  • Launch of Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources), a multilingual AI-based platform integrating agricultural portals.
  • Provides customised advisory services to farmers for risk reduction and better decision-making.

Glossary