The recent performance of Indian agriculture has been remarkable. It has not only surpassed the aspirational growth target of 4 per cent for the sector, but has also helped prop up sagging GDP growth. Can we put this down to constructive policy, increased productivity and higher support prices?
This is partly true, but farm growth has been rather uneven among crops and regions. True revival in agriculture has largely come from less endowed States, as against agriculturally intense States, especially those focused on high-value commercial crops.
So, it has been a story of a few State governments realising the beneficial effects of farm-led growth and focusing on it. This has occurred in a context of increased eco-fragility, shrinking farm lands and limited livelihood options for the poor.
Agriculture being a State subject, its overall performance depends largely on happenings at the State level. Average sectoral GSDP (gross State domestic product) growth between 2005-06 and 2011-12 has shown a recovery of 3.7 per cent a year compared with 1.7 per cent a year between 2000-01 and 2004-05. The high performing States were Jharkhand, Chhattisgarh, Manipur, Tripura, Mizoram, Gujarat and Rajasthan. Without new technology, it would perhaps be difficult to maintain high growth rates in States where productivity has already touched near potential levels.
The agricultural growth strategy in the Eleventh Plan accorded flexibility to States and focused more on yield gaps that can be addressed with the existing technology rather than on adopting new technologies. In fact, growth acceleration since 2005 was stronger in States with lower productivity and less irrigation.
While the growth rates in States can be linked to greater productivity in specific crops such as rice in Jharkhand and Chhattisgarh, cotton in Gujarat and oilseeds in Rajasthan, the importance of holistic approaches cannot be decried.
Therefore, focusing on rainfed farming covering over 60 per cent of arable land can yield considerable gains. Increased rainwater harvesting and water conservation measures in dryland areas, decentralised procurement of farm produce, development of supportive rural infrastructure and improved extension services have all driven agricultural growth.
Special Central scheme A special additional Central assistance scheme, the Rashtriya Krishi Vikas Yojana (RKVY), has also helped. The purpose behind this assistance programme was to encourage States to draw up district and State agricultural plans and increase their spending on the sector during the Eleventh Plan (2007-12).
RKVY was preferred by States for its flexibility in selecting interventions and setting State-specific targets. State plan expenditure (excluding RKVY receipts) as a percentage of GDP in agricultural and allied sectors increased from 1 per cent in the Tenth Plan to 1.4 per cent in the Eleventh Plan. State plan expenditure on agriculture and allied sectors (excluding RKVY) also increased as a percentage of total plan spending by States, from about 5 per cent during the Tenth Plan to over 6 per cent during the Eleventh Plan.
Why was the effort not visible in many States that are yet to reach their potential? Should not State governments follow a “Common Minimum Programme” (CMP) for agriculture? Any programme for farmers needs to ensure water availability in (mono-cropped) semi-arid/arid tracts. Indigenous water harvesting systems like check-dams and farm ponds in large dryland tracts could run as a people-led and government-supported initiative. But water harvesting needs to be followed up with water conservation systems.
Extension and mass contact programmes like Krishi Mahotsav can educate farmers in making informed choices. Research and extension systems learn to work in a practical environment. Another critical issue is to co-manage water and power to ensure sustainability. Unregulated use and heavy subsidies on power trigger a tendency of water over-use. As a result, the water table has declined in the northern, north-western and eastern States. States should realise that not free but reliable rural power is more critical to farming. A supportive agri-ecosystem and informed farmers in a freer market can produce the right results. Some States have grasped this.
The writers are with NABARD. Views are personal.