India FY24 Agriculture Growth Rate Declines To 1.4%, “Need To Improve Yields, Increase Crop Diversification,” Says CEA V Anantha Nageswaran

The growth rate for India’s agricultural sector which supports more than 42 percent of its population was seen at 1.4 percent in the financial year 2023-24 (FY24) as compared to a growth rate of 4.7 percent observed in FY23. 

The reason for decline in this sector which contributes nearly 18.2 percent to the country’s Gross Domestic Product was attributed to low food grain production on account of the El Nino phenomenon seen in the previous fiscal that ended on March 31.

According to the Economic Survey for FY24 tabled in both houses of the parliament on Monday (July 22), the food grain or cereal production for FY24 came at 328.8 million tonnes. This decline comes on the back of an all time high food grain production at 329.7 million tonnes seen in FY23.

Production of oil seeds and shri anna or millets saw a marginal increase in the same period in continuation of trend from FY23 while pulses saw marginal decline. 

The economic survey also noted livestock along with fishing and aquaculture growing at a much faster rate than crops as per the revised figures available for the agricultural sector from FY23. 

Notably, the survey also noted the average kilogram per hectare yield of rice, wheat and cotton being lower than the global average despite. 

For instance, the financial document pointed out that as per the farm productivity figures available from FY22, India’s paddy yield averaged at 4000 kilograms per hectare as compared to China’s paddy yield which came around 7000 kilograms per hectare.

The survey said that this was despite India being the second largest producer of the crops mentioned here and found it concerning more so since a bulk of government support was tilted in the favour of wheat and paddy.

“Monsoon is not exactly proceeding as the meteorology department told us before the monsoon season began. The rainfall in southern parts has been above average while the north is yet to receive above average rains. 

Also, while minimum support prices have been ensuring remunerative prices, we also need to encourage crop diversification,” CEA Dr V Anantha Nageswaran said in a press briefing post the survey’s release.