Road to Resilient Indian Agriculture

• 10 Jun 2025

This editorial is based on “Irrigation and cropping must be in sync” which was published in The Financial Express on 03/06/2025. The article brings into picture the mismatch between infrastructure-heavy agricultural policies and farmers’ real-time, need-based decisions, highlighting the need for decentralized, responsive reforms to build a resilient and inclusive farm sector.

For Prelims:  Indian agriculture sector, Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), Soil Health Card Scheme, Pradhan Mantri Krishi Sinchai Yojana (PMKSY), e-National Agriculture Market (e-NAM), National Mission on Sustainable Agriculture, Digital Agriculture Mission, National e-Governance Plan in Agriculture (NeGP-A) 

For Mains: Key Factors Driving Agriculture Reforms in India, Key Issues Hindering Agricultural Productivity and Sustainability in India.

India's agricultural policy has long operated on the assumption that infrastructure-led development—especially through large, long-gestation irrigation projects—will catalyze transformative changes in farming practices. Recent ground-level evidence shows that farmers make decisions on cropping patterns, irrigation, and input use based on immediate needs, climate variability, and local resources. This reveals a gap between top-down planning and the adaptive nature of grassroots decision-making. To create a more resilient and inclusive agricultural system, India needs to focus on real-time support, decentralized planning, and flexible policies that align with farming cycles and risks.

What are the Key Factors Driving Agriculture Reforms in India?  

• Technological Advancements and Digital Agriculture: Advancements in digital agriculture technologies like AI, GIS, drones, and remote sensing are revolutionizing the sector by improving productivity, resource management, and market access.  
  • These technologies enable precision farming, thus reducing costs and enhancing output quality.  
  • The launch of the National e-Governance Plan in Agriculture (NeGP-A) and initiatives like the Digital Agriculture Mission are facilitating tech adoption.  
    • Additionally, the rise in agritech investments, predicted to reach US$ 30-35 billion by 2025, reflects a growing tech-driven agricultural ecosystem. 
• Climate Resilience and Water Management: The focus on climate-resilient crops and water-efficient irrigation systems has intensified in response to India’s growing vulnerability to climate change.  
  • The Per Drop More Crop initiative under Pradhan Mantri Krishi Sinchayee Yojana, which covers over 95 lakh hectares, promotes micro-irrigation systems, enhancing water use efficiency. 
  • Given that irrigation intensity has increased from 144.2% to 154.5% between 2015-2021, this focus is vital for sustainable growth.  
    • In FY25, ₹21,968 crore has been allocated to states under this initiative, ensuring significant water conservation.  
• Diversification into High-Value Crops and Allied Sectors: Diversification toward horticulture, livestock, and fisheries has driven substantial agricultural growth, as demand for these products has surged both domestically and internationally.  
  • Fisheries, with a CAGR of 13.67% from FY13 to FY23, illustrate the success of such diversification.  
  • The government’s investment in allied sectors through schemes like PM Matsya Sampada Yojana (targeting ₹6,000 crore) has empowered farmers in these areas.  
    • India’s seafood exports grew by 29.7% to ₹60,523 crore in FY24, highlighting the sector’s growing global presence.  
• Improved Access to Credit and Financial Support: Access to institutional credit has significantly improved due to schemes like Kisan Credit Cards (KCC), which support farmers in acquiring timely financial assistance for inputs and operations.  
  • In FY22, ₹18.6 lakh crore was sanctioned to the agricultural sector in institutional credit, enhancing farmers' financial resilience.  
  • The PM-KISAN scheme has also directly disbursed ₹3.7 lakh crore to farmers, reinforcing the financial support structure.  
    • Such measures foster financial inclusion, allowing farmers to adopt better technologies and practices for increased productivity. 
• Infrastructure Development and Storage Capacity: The development of agricultural infrastructure, particularly in storage and transportation, is critical to reduce post-harvest losses and ensure better market access for farmers. 
  • The Agriculture Infrastructure Fund (AIF) has approved loans worth ₹10,000 crore to support infrastructure projects. 
  • India’s total foodgrain production is expected to reach 347.44 million tonnes in FY25, reflecting the positive impact of infrastructure investments. 
• Market Reforms and Digital Platforms: The establishment of the e-National Agriculture Market (e-NAM) has been pivotal in improving price discovery, transparency, and market access for farmers.  
  • With 1.74 crore farmers and 2.39 lakh traders participating, e-NAM has helped bridge the gap between rural producers and urban markets.  
  • The government's move to ensure One Nation, One Ration Card has also streamlined the distribution of foodgrains and created a unified agricultural market system.  
    • These reforms reduce the dependence on middlemen, ensuring fairer prices for farmers, which is crucial for improving their income. 
• Focus on Sustainable and Organic Farming: With increasing demand for organic and sustainable farming practices, the government has provided incentives for farmers to shift toward organic farming.  
  • India’s organic food market is expected to grow at a CAGR of 25.25% between 2022-27. 
  •  Initiatives like the National Mission on Sustainable Agriculture (NMSA) push for more sustainable agricultural methods. 
  • Additionally, the Millet Revolution, led by the Indian Institute of Millet Research, is positioning India as a global leader in Shree Anna production. 

What are the Key Issues Hindering Agricultural Productivity and Sustainability in India?   

• Inadequate Water Management and Irrigation Infrastructure: India's agricultural sector continues to face severe challenges due to inadequate water management and inconsistent irrigation infrastructure.  
  • Despite government efforts like the Per Drop More Crop initiative, water scarcity remains a persistent issue, particularly in rain-dependent regions.  
  • The irrigation coverage has increased from 49.3% to 55% of gross cropped area, yet significant gaps remain in states like Jharkhand.  
  • This uneven distribution of water resources affects agricultural productivity, especially in drought-prone areas. 
• Climate Change and Weather Uncertainty: Climate change is significantly affecting agricultural productivity, with erratic rainfall patterns and rising temperatures posing threats to crop yields.  
  • Farmers face the dual challenge of unpredictable weather, making traditional farming methods less reliable.  
  • Currently, the annual average crop losses due to extreme weather events alone is resulting in losses estimated at around 0.25 percent of India's GDP.  
  • It can also disproportionately impact crops like rice. For example, in India, an increase in temperature by 1.5° C and decrease in the precipitation of 2 mm, will reduce the rice yield by 3 to 15% . 
• Small Land Holdings and Fragmented Agriculture: The dominance of small land holdings in India leads to inefficient farming practices and limited economies of scale. 
  • With 96% of Indian landholdings being marginal or small, farmers struggle to invest in advanced technologies and mechanization.  
  • As land sizes decrease, the cost per unit of production rises, leading to lower productivity.  
  • For example, the average farm size is expected to decline to 0.6 hectares by 2047, making it challenging to implement modern agricultural techniques. 
• Lack of Even Access to Modern Technology and Innovation: Despite the availability of advanced agricultural technologies, their adoption remains slow, particularly among smallholder farmers.  
  • The gap in access to digital platforms, drones, and AI-driven farming techniques hinders productivity improvements.  
  • The government’s Digital Agriculture Mission has initiated several tech-driven schemes, but 30% of farmers are still not utilizing such technologies.  
    • The slow pace of tech adoption, especially in remote areas, limits India's agricultural potential to scale up production and achieve sustainability. 
• Inefficient Agricultural Policies and Market Regulations: While several policies have been introduced to boost agricultural productivity, their implementation often lacks coherence and doesn’t address the localized needs of farmers.  
  • For instance, the Minimum Support Price (MSP) system, though intended to protect farmers' incomes, has faced criticism for not covering all crops and being poorly enforced.  
  • The e-NAM platform, aimed at ensuring better price discovery, has only engaged 1.74 crore farmers, leaving many out of the formal market system.  
    • This fragmented policy approach hampers the smooth functioning of agricultural markets, making them inefficient and opaque. 
• Soil Degradation and Limited Sustainable Practices: Soil health is deteriorating rapidly in India due to the overuse of chemical fertilizers and inadequate focus on organic practices.  
  • With over 30% of Indian soils being degraded, agricultural sustainability is at risk, leading to declining crop yields.  
  • Despite schemes like the National Mission on Sustainable Agriculture (NMSA), scientists estimate that fewer than 5% of Indian farmers have switched to sustainable farming methods.  
    • The dependency on chemical inputs has led to soil exhaustion, requiring a deeper investment in long-term soil health restoration practices, which remains underfunded. 
• Inadequate Storage and Post-Harvest Infrastructure: Post-harvest losses in India continue to be alarmingly high due to poor storage and inadequate infrastructure.  
  • In the absence of efficient cold storage and transportation networks, around 40% of the food wasted is equivalent to nearly 92,000 crore/year.  
    • This is equivalent to nearly 1% of the GDP which is depleted in the form of food wastage in India.  
  • The government’s focus on creating more storage capacity under schemes like the Agriculture Infrastructure Fund (AIF) has yielded some results, but substantial gaps remain in rural areas.  
    • For example, the kharif crop procurement has risen significantly from 467.9 million tonnes (2004-14) to 787.1 million tonnes (2015-25), but inadequate storage still results in losses. 
• Limited Access to Credit and Financial Support: While initiatives like the Kisan Credit Card (KCC) and PM-KISAN have provided some financial relief, access to timely and adequate credit remains a barrier for many farmers.  
  • Many farmers still rely on informal sources of credit, which are often exploitative. 
    • A recent RBI report highlights this thriving informal finance in rural India, with 31% of loans sourced informally. 

 

What Measures can India Adopt to Enhance Agricultural Productivity and Effectiveness?

• Accelerate Agricultural Mechanization: India should prioritize widespread adoption of farm machinery through subsidized access, custom hiring centers, and farmer producer organizations.  
  • The Dalwai Committee's findings demonstrate that mechanization can simultaneously cut cultivation costs by 25% and increase productivity by 20%, resulting in a substantial 25-30% rise in farm income.  
  • This dual benefit makes mechanization a critical pathway for enhancing both agricultural efficiency and farmer prosperity. 
• Promoting Climate-Resilient Agriculture: India needs to focus on developing and promoting climate-resilient crop varieties that can withstand extreme weather conditions such as droughts, floods, and high temperatures.  
  • Encouraging the use of precision farming techniques, such as weather forecasting tools and AI-driven models for real-time decision-making, can help farmers adapt their practices to changing climate patterns.  
  • The release of 109 high yielding, climate resilient and biofortified varieties of crops in 2024 is a significant step in the right direction.  
  • Existing digital platforms like mKisan, Kisan Suvidha, and Pusa Krishi should be leveraged to disseminate information about crop varieties, available subsidies, and technical guidance to farmers 
• Revamping Irrigation Infrastructure with Smart Technologies: While irrigation infrastructure has seen progress, India must move toward smarter, more sustainable irrigation systems.  
  • Investment in advanced technologies like drip irrigation and sensor-based irrigation management can significantly reduce water usage while improving efficiency.  
  • Additionally, integrating Agri- IoT-based that provide real-time data on soil moisture levels, hyperlocal weather forecasting to cater the local needs, and crop water requirements can optimize irrigation schedules, reduce waste, and conserve water resources. 
• Strengthening Agricultural Research and Development (R&D): India must scale up investment in agricultural research, focusing on innovations in genetics, pest management, and sustainable farming techniques.  
  • Enhancing the accessibility of research findings to farmers through digital platforms and extension services is critical for translating cutting-edge research into practical on-ground applications. 
• Enhancing Market Access through Digital Platforms: Expanding the reach and efficiency of digital agricultural marketplaces like e-NAM can empower farmers by offering transparent pricing, eliminating intermediaries, and expanding market access. 
  • Further investment in blockchain technology for traceability can ensure fair pricing and reduce exploitation.  
  • Additionally, strengthening mobile-based platforms to facilitate direct farmer-consumer connections, particularly for perishable goods, can minimize post-harvest losses and enhance farmers' bargaining power. 
• Encouraging Diversification into High-Value Crops: To reduce dependency on traditional cereals and pulses, India should incentivize the cultivation of high-value crops such as fruits, vegetables, spices, and herbs that are in high demand both domestically and internationally.  
  • Promoting crop diversification by restructuring the MSP regime to incentivise farmer to move beyond wheat and rice and help them to achieve higher returns while reducing risks associated with monoculture.  
  • This shift could be supported by policy measures, including subsidies for inputs, improved access to quality seeds, and market linkage support. 
• Improving Soil Health through Integrated Nutrient Management: Soil degradation continues to be a major challenge for India’s agricultural productivity.  
  • To combat this, the government should encourage integrated nutrient management (INM) practices, combining organic fertilizers, bio-fertilizers, and chemical fertilizers in a balanced manner.  
  • Encouraging the use of composting, green manuring, and crop rotation can restore soil fertility, improve water retention, and reduce dependency on chemical inputs, ensuring sustainable productivity growth. 
• Fostering Public-Private Partnerships in Agricultural Infrastructure: Private sector involvement in developing agricultural infrastructure, such as cold storage facilities, food processing units, and warehouse networks, can significantly improve the post-harvest value chain.  
  • The government should facilitate public-private partnerships (PPP) that incentivize private investment in infrastructure while ensuring equitable benefits for smallholder farmers.  
    • These partnerships can also focus on logistics improvements to reduce transportation costs and post-harvest losses. 
• Strengthening Farmer Producer Organizations (FPOs): Farmer Producer Organizations (FPOs) can play a pivotal role in enhancing farmers' access to markets, technology, and finance.  
  • By strengthening FPOs, farmers can benefit from economies of scale, improved negotiation power, and better access to credit.  
  • Additionally, empowering FPOs with digital tools and capacity-building programs will enable them to effectively manage collective farming practices and market their produce in a more structured and profitable manner. 
• Facilitating Rural Entrepreneurship and Agri-Tech Startups: Encouraging rural entrepreneurship and the growth of agri-tech startups can drive innovation in farm practices, product development, and service delivery.  
  • The government can create dedicated incubation centers for agri-tech, offering training, funding, and mentorship to aspiring entrepreneurs.  
  • Such initiatives can bridge the technology gap, particularly in areas like automated farming, drone services, and AI-based analytics, while also generating employment and fostering rural development. 
    • For instance, AmbiTAG is an indigenous temperature data logger developed by IIT Ropar for cold chain management.  
• Boosting Sustainable and Organic Farming Practices: To align with global market trends and growing consumer demand, India should push for large-scale adoption of organic farming by offering incentives such as subsidies on organic inputs, and facilitating certification processes. 
  • Support for natural farming methods, such as zero-budget natural farming (ZBNF), should be intensified, focusing on improving soil health, reducing chemical dependency, and offering a premium price for organic produce.  
  • While promoting organic farming through subsidies and certification support, India must ensure this shift maintains productivity to prevent disruptions as seen in the case of Sri Lanka.

Conclusion:

To truly revitalize Indian agriculture, policy must move beyond long-gestation infrastructure and align with farmers' real-time, localized needs. By fostering climate-smart practices, digital solutions, and diversified value chains, reforms can enhance productivity and resilience. Strengthening FPOs, agri-tech, and inclusive credit systems will empower smallholders. A responsive, tech-enabled, and sustainable approach is key to securing India's food and income security goals. 

Drishti Mains Question:

Despite substantial public investment and a wide array of schemes, Indian agriculture continues to face structural bottlenecks. Discuss.

  

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims:

Q. In the context of India’s preparation for Climate -Smart Agriculture, consider the following statements: (2021)

1. The ‘Climate-Smart Village’ approach in India is a part of a project led by the Climate Change, Agriculture and Food Security (CCAFS), an international research programme.  
2. The project of CCAFS is carried out under Consultative Group on International Agricultural Research (CGIAR) headquartered in France.  
3. The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in India is one of the CGIAR’s research centres.  

Which of the statements given above are correct? 

(a) 1 and 2 only  

(b) 2 and 3 only  

(c) 1 and 3 only  

(d) 1, 2 and 3  

Ans: (d) 

Q. Consider the following pairs: (2014)

1. Programme/Project Ministry  
2. Drought-Prone Area Programme Ministry of Agriculture 
3. Desert Development Programme Ministry of Environment and Forests 
4. National Watershed Development Project for Rainfed Areas Ministry of Rural Development 

Which of the above pairs is/are correctly matched?  

(a) 1 and 2 only  

(b) 3 only  

(c) 1, 2 and 3  

(d) None  

Ans: (d) 

Q. In India, which of the following can be considered as public investment in agriculture? (2020)

1. Fixing Minimum Support Price for agricultural produce of all crops  
2. Computerization of Primary Agricultural Credit Societies  
3. Social Capital development  
4. Free electricity supply to farmers  
5. Waiver of agricultural loans by the banking system  
6. Setting up of cold storage facilities by the governments  

Select the correct answer using the code given below: 

(a) 1, 2 and 5 only  

(b) 1, 3, 4 and 5 only  

(c) 2, 3 and 6 only  

(d) 1, 2, 3, 4, 5 and 6  

Ans: (c) 

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Mains: 

Q. Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)

Q. Explain various types of revolutions, took place in Agriculture after Independence in India. How have these revolutions helped in poverty alleviation and food security in India? (2017)