India achieved a record foodgrain output of 357.73 MMT in 2024-25, with agriculture contributing nearly one-fifth to GVA.
Key government initiatives support production, credit, price support, market reforms, and extension services for resilient agriculture.
Challenges include climate vulnerability, import dependency, smallholder economic insecurity, market volatility, and supply chain inefficiencies.
In Summary
Why in the News?
India recorded an unprecedented foodgrain output of 357.73 million metric tonnes (MMT) in theyear 2024-25.
Status of Agriculture in India
Agriculture and allied activities account for nearly one-fifth of the country's gross value added at current prices.
World's second-largest agricultural land area.
Leading Producer (First Globally)
Pulses, Millets and Rice
Spices
Dry Onions (contributes nearly 25 % of the world's total)
Coconuts
Second Globally
Wheat
Fruits and Vegetables
High₹-Value Cash Crops- Sugarcane, Cotton, Tea
Steps taken to Support Resilient Production Systems
Productivity and Input-Led Strategies: E.g., National Food Security and Nutrition Mission (NFSNM), the Mission for Aatmanirbharta in Pulses (2025–31), National Mission on Edible Oils (NMEO), etc.
Credit, Mechanization, and Technology: E.g., Kisan Credit Card, Custom Hiring Centres , etc.
Price Support and Risk Management: E.g., Minimum Support Price (MSP), Pradhan Mantri Fasal Bima Yojana (PMFBY), etc.
Market Reforms, Infrastructure, and Collectivisationn: E.g., e-National Agriculture Market (e-NAM), Agriculture Infrastructure Fund (AIF), Farmer-Producer Organisations (FPOs), etc.
Extension Services: E.g., Sub-Mission on Agricultural Extension under Krishonnati Yojana.
Financial and Budgetary Support: Budget allocation for the Department of Agriculture rose substantially to Rs. 1,30,561.38 crore in 2026-27.
Existing Challenges in Indian Agriculture
Climatic and Environmental Vulnerabilities: E.g., crop loss due to natural disasters as well as outbreaks of pests and diseases.
Import Dependency in essential commodities: such as pulses and edible oils.
Economic Insecurity of Smallholders: Indian agriculture is dominated by small and marginal farmers with limited access to resources.
Market Volatility and Trade Barriers: Farmers face market-related risks and price variability.
In global markets, Indian agricultural products occasionally face hurdles, such as the global tariff and non-tariff barrier. E.g., Sanitary and Phytosanitary (SPS) standards of EU
Supply Chain and Post-Harvest Inefficiencies: E.g., Improper storage leads to loss of grains, fruits, and vegetables.
Other: Unbalanced use of fertilizer leading to soil degradation, etc.
Way Forward
Digital Market Access: Expanding electronic trading portals like the e-NAM integrates local mandis into a unified national platform.
Promoting Collectivization: Forming and promoting FPOs and modernizing Primary Agricultural Credit Societies (PACS) empowers farmers through collective bargaining, decentralized grain storage, and shared resources.
Mechanization: Increasing smallholder access to modern farm machinery through Custom Hiring Centres (CHCs) allows farmers to adopt advanced practices without prohibitive upfront costs
Promoting climate-resilient agricultural practices: It includes drip irrigation and sprinkler systems, as well as diversifying to high-yield climate resilient/drought resistant crops
Promoting adoption of digital technologies: Including precision agriculture tools and data analytics, can significantly optimise farming operations and yield predictions.
Undertaking reforms in the fertiliser sector: It will promote sustainability, restore soil carbon, and correct imbalanced nutrient promoting crop diversification.
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RELATED TERMS
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Crop Diversification
The practice of growing a variety of crops in a particular area rather than monoculture. It is encouraged to improve soil health, reduce pest and disease incidence, conserve water, enhance nutritional security, and reduce reliance on a single crop.
Precision Agriculture
A farming management concept based on observing, measuring, and responding to inter- and intra-field variability in crops. It uses technologies like sensors, drones, and AI to optimize resource use and improve yields.
Sanitary and Phytosanitary (SPS) standards
International standards aimed at protecting human, animal, and plant life or health. Countries use these standards to ensure food safety and to prevent the introduction or spread of pests and diseases in trade.
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