Lok Sabha Question No. 5922 (UNSTARRED), answered on 2018-04-03
Subject: Growth of Agriculture Sector
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: C. MAHENDRAN, ELUMALAI VELLAIGOUNDER

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.5922

TO BE ANSWERED ON THE  3 RD  APRIL, 2018

## GROWTH OF AGRICULTURE SECTOR

5922.  SHRI C. MAHENDRAN: SHRI V. ELUMALAI:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE      ‡ãðŠãäÓã एवं  कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) whether the growth rate of agriculture sector in the country has dropped from 3.5 per cent three years before 1.7 per cent this year and if so, the reasons therefor;
- (b) whether the agriculture and allied sectors are estimated to grow at a slower pace of 3 per cent in 2017-18 as compared to 6.3 per cent in 2016-17 and if so, the details thereof and the reasons therefor;
- (c) whether the  country  needs  to  import  foodgrains  to  meet  the  country's  demand and if so, the details thereof;
- (d) whether  the  institutional  barrier  comprising  governance,  the  quality  of  public systems, and economic policies has become the most serious impediment to agriculture growth  in  the  country  and  if  so,  the  details  thereof  and  the  steps  taken  by  the Government to improve the situation;
- (e) whether the long term growth trend in production and productivity of agriculture, considerably less than required to sustain the projected high overall growth rates in the coming decade may actually  be  slowing  down  and  the  growing  economic  and  social disparities  between  agriculture  and  the  rest  of  the  economy  and  between  rural  and urban sectors have made the farmers life deep miserable and if so, the details thereof; and
- (f) whether  the  Government  has  launched  several  schemes  for  the  growth  of agriculture  sector  and  welfare  of  the  farmers  through  increase  in  production  and productivity of agricultural crops and to improve income levels of farmers and if so, the details thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं कसान कयाण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè ( SHRI GAJENDRA SINGH SHEKHAWAT)

- (a): As  per  the  first  revised  Estimates  of  National  Income  released  by  the  Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation (MoSPI) dated 31 st January, 2018, the growth rate of Gross Value Added (GVA) of agriculture (crop and livestock) in the country at constant (2011-12) prices for the last four years 2013-14 to 2016-17 is as under:

(in percent)

| Year    |   Growth of Gross Value Added (GVA) of agriculture (crop and livestock) at constant (2011-12) prices |
|---------|------------------------------------------------------------------------------------------------------|
| 2013-14 |                                                                                                  5.5 |
| 2014-15 |                                                                                                 -0.8 |
| 2015-16 |                                                                                                 -0.1 |
| 2016-17 |                                                                                                  6.8 |

Source: Central Statistics Office (CSO), MoSPI

(b): As per the Second Advance Estimates of National Income 2017-18 released by the  Central  Statistics  Office,  MoSPI  on  28 th February,  2018  the  growth  rate  of  Gross Value Added (GVA) of agriculture and allied sector in the country at constant (2011-12) prices  was  6.3  and  3.0  percent  for  2016-17  and  2017-18  respectively.    The  CSO's approach of estimation of GVA in agriculture sector is predominantly production based. Since 2016-17 marked a record production of foodgrains and the base year 2015-16 (for calculating growth of GVA 2016-17) was a drought year, the GVA in agriculture and allied  sector  recorded  a  high  growth  during  2016-17.  In  spite  of  a  better  agricultural output estimated for 2017-18, the GVA growth rate is moderate on account of the high output in the base year, viz. 2016-17.

(c): Agricultural  production  and  productivity  in  the  country  has  been  generally increasing  with  the  exception  of  the  years  affected  by  drought,  floods,  other  natural calamities, etc. Incase of exigencies on account of cyclical fluctuations, Government of India  facilitates  imports  of  various  agricultural  commodities  to  augment  their  domestic availability.

(d) to (f): Agriculture is a state subject and, therefore, it is primarily the responsibility of  States  to  take  necessary  steps  for  development  of  agriculture  in  their  respective areas.  However,  Government  of  India  supplements  the  efforts  of  States  through appropriate policy measures and budgetary support.  Government has launched several schemes to increase growth of agriculture sector in the country and for welfare of the farmers  through  increase  in  production  and  productivity  of  agricultural  crops  and  to improve  the  income  level  of  farmers.  These  include  programmes  like  National  Food Security  Mission  (NFSM),  Rashtriya  Krishi  Vikas  Yojana  (RKVY),  Bringing  Green Revolution  to  Eastern  India  (BGREI),  National  Mission  on  Oilseeds  and  Oil  Palm (NMOOP), National Mission on Agriculture Extension & Technology (NMAET), National Mission for Sustainable Agriculture (NMSA) and Pradhan Mantri Krishi Sinchai Yojana (PMKSY) etc.

Further,  the  minimum  support  prices  (MSPs) of  major  agricultural  commodities have  been  progressively  increased  to  ensure  remunerative  price  to  the  farmers.  The Budget  for  2018-19  has  announced  that  as  a  pre-  determined  principle,  Government has decided to keep MSP at one and half times of the cost of production of the ensuing Kharif crops also in line with that already implemented for the majority of rabi crops of 2018-19 marketing season.

As  a  result  of  the  initiatives  taken  by  the  Government  of  India  and  policies implemented  by  the  respective  State  Governments,  record  production  of  foodgrains (including both cereals and pulses) is estimated in the country during 2017-18 as per the Second Advance Estimates. Production of oilseeds, foodgrains and pulses during 2017-18 is estimated at 29.88 million tonnes, 277.49 million tonnes and 23.95 million tonnes,  respectively.  The  estimated  production  of  foograins  in  2017-18  equals  the demand for foodgrains during 2020-21 as projected by the Twelfth Plan Working Group on Crop Husbandry, Demand and Supply projection, Agriculture Inputs and Agricultural Statistics.

As per the First Advance estimates of production of horticulture crops 2017-18, production of horticulture crops is estimated at 305426.30 thousand MT in 2017-18 as compared to 300642.95 thousand MT in 2016-17. However, unlike other sectors where growth  comes  from  greater  and  greater  uses  of  factors  of  production  as  well  as productivity gains, agriculture sector growth is limited by the availability of land and is thus, largely driven by productivity gains.

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