Farm sector gets boost as Agri Infra Fund mobilises Rs 73,194 crore: Eco Survey
The government’s priority has been to provide timely, cost-effective, and adequate credit that reduces the dependence on non-institutional credit and increases investment.
IANS
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NEW DELHI: The Agriculture Infrastructure Fund (AIF) launched by the Government to spur growth in the farm sector has succeeded in mobilising an investment of Rs 73194 crore, according to the Economic Survey released on Monday.
In addition, the Government has been implementing the Agriculture Marketing Infrastructure (AMI) to improve the extent of storage infrastructure. As of 30th April 2024, 48357 projects were sanctioned for storage infrastructure with Rs 4570 crore released as subsidy, and 20878 other projects are also under progress with Rs 2084 crore released as subsidy under AMI, the survey points out.
The agriculture sector has registered an average annual growth rate of 4.18 per cent at constant prices over the last five years. As per provisional estimates for 2023-24, the growth rate of the agriculture sector stood at 1.4 per cent at constant prices due to the erratic monsoon.
The survey also highlights that allied sectors of Indian agriculture are steadily emerging as robust growth centres and promising sources for improving farm incomes. From 2014-15 to 2022-23, the livestock sector grew at an impressive Compound Annual Growth Rate (CAGR) of 7.38 per cent at constant prices. The fisheries sector has grown at a compound annual rate of 8.9 per cent between 2014-15 and 2022-23 (at constant prices).
The government’s priority has been to provide timely, cost-effective, and adequate credit that reduces the dependence on non-institutional credit and increases investment. The measures have reduced the share of non-institutional credit from 90 per cent in 1950 to 23.40 per cent in 2021-22, the survey adds.
Promotion of greater efficiency in the use of inputs and sustainable production methods through Per Drop More Crop (PDMC), a micro irrigation scheme, and the actions under the National Mission on Sustainable Agriculture (NMSA), including the use of alternative and organic fertilisers are a few examples of initiatives being undertaken to improve productivity and sustainability. An area of 90.0 lakh hectares has been covered under micro irrigation in the country under the PDMC from 2015-16 to 2023-24 as of 6th February 2024, the survey states.
To facilitate the adoption of smart agriculture technologies, the government has taken up digital initiatives such as the Digital Agriculture Mission and e-National Agriculture Market (e-NAM), with the latter allowing better price discovery. The Digital Agriculture Mission 2021-2025 aims to modernise agriculture through advanced technologies like AI, remote sensing, drones, etc, it added.
The government has taken various measures to promote cooperatives and farmer-producer organisations. As of February 29, 2024, 8,195 Farmer Producer Organizations (FPOs) have registered under the new FPO scheme.
The economic survey also states that efforts must be made to encourage production patterns and practices in various geographies that are consistent with their agro-climatic characteristics and natural resources. Agriculture policies must be consistent with climate imperatives and water security.
Investment in technology, production methods, marketing infrastructure, and reduction in post-harvest losses need to be scaled up. E-NAM, promoting FPOs, and allowing cooperatives to participate in agri-marketing can improve the market infrastructure and allow better price discovery. Improving the market infrastructure by incentivising states can be explored.
