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  • 12 April, 2021

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Status of Indian Agriculture

Status of Indian Agriculture


  • The Agriculture and Allied activities clocked a growth of 3.4%.
  • As per the Provisional Estimates of National Income released by Central Statistical Organization in May, 2020, the share of Agriculture and Allied Sectors in Gross Value Added (GVA) of the country at current prices is 19.9% in 2020-21 from 17.8% for the year 2019-20.

Agricultural Exports

  • In 2019-20, India’s agricultural and allied exports amounted to approximately Rs. 252 thousand crores.
  • The major export destinations were USA, Saudi Arabia, Iran, Nepal and Bangladesh.
  • The top agriculture and related products exported from India were marine products, basmati rice, buffalo meat, spices, non-basmati rice, cotton raw, oil meals, sugar, castor oil and tea.
  • While India occupies a leading position in global trade of aforementioned agri-products, its total agri-export basket accounts for a little over 2.5 per cent of world agri-trade.

Minimum Support Price

  • “The Union Budget for 2018-19 had announced that MSPs would be kept at the level of 1.5 times of the cost of production.
  • Government recently increased the MSPs for all mandated kharif and rabi crops for 2020-21season.”

Atma Nirbhar Bharat Abhiyan

The Economic Survey observes that the major announcements for agriculture and food management under the Atma Nirbhar Bharat Abhiyan have been

  1. Rs. 1 lakh crores Agriculture infrastructure fund
  2. Rs. 10,000 crores scheme for Formalisation of Micro Food Enterprises (MFE)
  3. Rs. 20,000 crores for fisherman through Pradhan Mantri Matsya Sampada Yojana (PMMSY)
  4. National Animal Disease Control Programme
  5. Animal Husbandry Infrastructure Development Fund- Rs. 15,000 crores
  6. Reforms in Essential Commodities Act,
  7. Agriculture Marketing and Agriculture Produce Pricing and Quality Assurance
  8. PM Garib Kalyan Ann Yojana; One Nation One Ration Card.

Agricultural Credit

  • The Economic Survey notes “Given the large proportion of resource constrained small and marginal farmers in India, timely availability of adequate credit is fundamental for the success of farming activities.”
  • The agricultural credit flow target for the year 2019-20 was fixed at 13,50,000 crores and against this target the achievement was 13,92,469.81 crores.
  • The Economic Survey notes that the Agriculture Infrastructure Fund announced as a part of Atma Nirbhar Bharat Abhiyan will further boost credit flow to the agriculture sector.

Pradhan Mantri Fasal Bima Yojana

  • The Survey observes that Pradhan Mantri Fasal Bima Yojana (PMFBY) is a milestone initiative to provide a comprehensive risk solution at the lowest uniform premium across the country for farmers.
  • Aadhar seeding has helped in speedy claim settlement directly into the farmers’ accounts.
  • Even during COVID-19 lock down period nearly 70 lakh farmers benefitted and claims worth Rs. 8741.30 crores were transferred to the beneficiaries.

Livestock Sector

  • Regarding Livestock Sector the Economic Survey says “The livestock sector grew at CAGR of 8.24 per cent during 2014-15 to 2018-19.
  • As per the estimates of National Accounts Statistics (NAS) 2020 for sector wise Gross Value Added of Agriculture and allied sector, the contribution of livestock in total agriculture and allied sector GVA (at Constant Prices) has increased from 24.32 per cent (2014-15) to 28.63 per cent (2018-19).
  • Livestock sector contributed 4.19 per cent of total GVA in 2018-19.”
  • The livestock sector is included in Kisan Credit Card in February 2020, 1.5 crores dairy farmers of milk cooperatives and milk producer companies’ were targeted to provide Kisan Credit Cards (KCC) as part of Prime Minister’s Atma Nirbhar Bharat Package.


  • India’s Cattle Inventory amounted to over 303 million in 2020 which is about 56.7% of the total livestock population of India.
  • India continues to be the largest producer of milk in the world. Milk production in the country was 198.4 million tonnes in 2019-20 and registered a growth rate of 6.5% over the previous year.
  • While the global cattle population stood at over 987 million, India had the highest cattle population followed by Brazil, the United States, and China.
  • There is a Decline of 6% in the total Indigenous (both descript and non-descript) Cattle population over the previous census. However, the pace of decline of Indigenous Cattle population during 2012-2019 is much lesser as compared to 2007-12 which was about 9%.


  • FAOSTAT production data (2019), India ranks 3rd in egg production in the world.
  • Annual Growth rate of egg production was 4.99% in 2014-15, thereafter, there has been a significant improvement in the egg production with 10.19% growth in 2019-20 over the previous year.


  • The Economic Survey notes that Fish production in India has reached an all-time high of 14.16 million metric tons during 2019-20.
  • Further, the Gross Value Added (GVA) by the Fisheries sector to the national economy stood at 2,12,915 crores constituting 1.24 per cent of the total national GVA and 7.28 per cent of the agricultural GVA.

Pradhan Mantri Garib Kalyan Anna Yojana

  • The Economic Survey describes that “During the Financial Year 2020-21, allocation of foodgrains has been done through two channels- under National Food Security Act (NFSA) and Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) scheme.
  • At present NFSA is being implemented in all the 36 States/UTs and they are receiving monthly allocation of foodgrains under NFSA.
  • Government of India launched the Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) scheme for additional allocation of foodgrains from the Central Pool at the rate of 5 kg per person per month free of cost for all the beneficiaries covered under Targeted Public Distribution System (TPDS) (i.e.,beneficiaries under Antyodaya Anna Yojana & Priority Households).
  • Under Atma Nirbhar Bharat Package, 5 kg per person per month was distributed for four months (May to August) to benefit approximately 8 crores migrants who are not covered under NFSA or state ration card entailing subsidy of Rs. 3109 crores approximately.

Food Processing Industries

  • The Economic Survey notes that during the last 5 years ending 2018-19, Food Processing Industries (FPI) sector has been growing at an Average Annual Growth Rate (AAGR) of around 9.99 per cent as compared to around 3.12 per cent in Agriculture and 8.25 per cent in Manufacturing at 2011-12 prices.

Key Findings

  • The Indian food market is the sixth largest in the world. It contributes 32% to the global market due to its leadership in the production and export of food products.
  • India is the world’s largest processor, producer, consumer, and exporter of cashew nuts, spices, food grains, fruits, and vegetables.
  • Recently government announced that its production-linked incentive scheme would benefit food products, with an outlay worth INR 109 billion (US$14.59 billion), earmarked for a five-year period.
  • The product lines are: ready to eat (RTE) and ready to cook (RTC), marine products, fruits and vegetables, honey, desi ghee, mozzarella cheese, organic eggs, and poultry meat.
  • The processed food market is expected to grow to US$543 billion by the end of 2020.
  • Currently, the industry employs 1.85 million people and puts out an aggregate output worth US$158.69 billion. There is ample scope for doing business in this space in food products, food processing equipment, investing in processing industries, tapping into regional small and medium enterprises (SMEs) and developing supply chains etc.

Farm Laws:

  • It strongly defended new farm laws, saying they herald a new era of market freedom which can go a long way in improving lives of small and marginal farmers in India.
  • These legislations were designed "primarily" for the benefit of "small and marginal farmers", which constitute around 85% of the total number of farmers and are the biggest sufferer of the "regressive" Agricultural Produce Market Committee (APMC) -regulated market regime.

Recent developments in Crops-

Food Grains

  • Among total imports of food grains, the % share of different crops shows that- cereals are highest followed by pulses>cashewnuts > edible oils.
  • Food Grains Constitute 50.7% of agriculture production.
  • Among food grains, Weightage of Cereals is 41.7%, Pulses is 8.9%
  • Among Cereals, Weightage of Coarse Cereals is 6.9%.
  • 296.7MT of food grains were produced in 2019-20, compared to 285.2 MT in 2018-19.
  • Except Potato (50.2 in 2018-19 to 48.7MT in 2019-20), Jute (9.5 to 9.4 MT), Rape Seed and Mustard (9.3 to 9.1 MT) and sugarcane (405.4 to 355.7 MT), rest ALL crops (Food and Non Food) witnessed a RISE in Production.
  • Sugar witnessed steep fall in production to 355.7MT (2019-20) from 405.4MT (2018-19).


  • In 2020-21, the growth rate of agriculture is estimated to be 3.4%. While the contribution of the sector to Gross Value Added (GVA) declined from 18.3% to 17.8% between 2014-15 and 2019-20, it is estimated to increase to 19.9% in 2020-21. This is because the agricultural sector faced fewer disruptions on account of the COVID-19 pandemic as compared to non-agricultural sectors.

Paddy,Wheat procurement 2020-21

  • Paddy procurement figure reached all-time high of 805.21 LMTs (includes Kharif Crop 706.93 LMT and Rabi Crop 98.28 LMT) upto June 2021 against the last year corresponding purchase of 732.40 LMT, previous year high record.
  • 12.33 % more wheat procured this year in comparison to last year’s corresponding period
  • 413.91 LMT Wheat procured, against the last year corresponding purchase of 368.45 LMT
  • About 45.06 Lakh farmers benefitted from the ongoing wheat procurement


World Production :

  • China(30%),India(24%), Bangladesh(7%), Indonesia(7%), Vietnam(5%).

State wise Production:

  • West Bengal with 15.7%% production is top producer followed by UttarPradesh (15%), Punjab(11%)and TamilNadu (8%).

% of World Trade

  • India33%-major exporter followed by, Thailand 20%> USA 8%, Vietnam 6%, Pak5%, China.


World Production :

  • World 2nd in production(22%). China21%, India, Russia, USA, France, Canada

State wise Production

  • UttarPradesh with 33% production is top producer followed by Madhya Pradesh 20%, Punjab 18 % and Haryana

% of World Trade

  • USA - top exporter, followed by Brazil, Argentina, Ukraine, France


  • India is the largest producer, importer and consumer of pulses in the world accounting for nearly 25% global production, 15% of International trade and 27% of world consumption.
  • Among food grains (which is 50.7% of total Agriculture Production), Weightage of Pulses is 8.9%.
  • In overall Agriculture Production, Weightage of Pulses (8.9%)> Coarse Cereals (6.9%).
  • Top exporters of pulses are Canada followed by USA, Myanmar, Australia.


World Production :

  • USA 25%- Top Producer, followed by India21%, Mexico, China

State wise Production

  • Maharashtra is highest with 36% of total production, followed by Karnataka 22.8%, Madhya Pradesh 11.5%, TamilNadu 8% and Andhra 6%.

% of World Trade

  • USA is top exporter followed by, Brazil and Argentina


World Production :

  • India is the largest producer of Red gram accounting 81.49% of total production and 80.59% of total area of the world.
  • Other major Red gram producing countries are Myanmar (10.02 percent), Malawi (2.64 percent) and Uganda (2.60 percent).

State wise Production

  • Madhya Pradesh with 40.93 is the largest producer, followed by Maharashtra 15.84%, Rajasthan 14.86% Karnataka6.41% and Andhra Pradesh.


World Production :

  • India is the 3rd largest producer (17.1%) of tea in the world, next to China and Turkey

State wise Production

  • Assam is top producer with 44% tea prodn followed by, WB(22% tea prodn), Tamilnadu, Kerala, Karnataka

% of World Trade

  • China with 32%share in world trade is Top exporter followed by India 12% of world trade and Sri lanka 11%.
  • India imports Tea from Vietnam, Indonesia, Sri Lanka.


World Production :

  • India is 7th largest producer of coffee in the world after Brazil, Vietnam, Colombia, Indonesia, Ethiopia, Mexico

State wise Production

  • Production is shared by three states namely Karnataka, Kerala & Tamilnadu in desending order.

% of World Trade

  • Brazil with 25% share in world trade is Top exporter followed by Vietnam (17%), Colombia (7%).
  • India-7th in world exports
  • India exports Coffee to: U.K., U.S.A., Russia, Australia& Iraq.


% of World Trade

  • Top exporting Countries: Thailand, Indonesia, Cote’d’Ivore, Vietnam, Malaysia, Myanmar.
  • Imported from: Thailand, Indonesia, Vietnam, Malaysia, MERCOSUR Countries

State wise Production

  • Entire rubber is produced in Kerala, Tamilnadu , Karnataka.
  • Karnataka (92%) of total rubber production


  • 1st in world prodn & exports.
  • Exports to USA, Russia, UK, Germany.


  • 1st world production (54%) & export.
  • Top States: Uttar Pradesh is top producer followed by Andhra and West Bengal.
  • Exported to: Bangladesh, UAE, Saudi, EU, UK.


It is World’s most traded fruit , making up 15% of total fruits exported in the world.

% of World Trade

  • Below are the countries that exported the highest dollar value worth of bananas during 2019.
  1. Ecuador: US$3.3 billion (22.6% of total bananas exports)
  2. Philippines: $1.9 billion (13.2%)
  3. Colombia: $1.6 billion (11%)
  4. Costa Rica: $999.7 million (6.8%)
  5. Guatemala: $944.5 million (6.4%)
  • India Exports to: UAE, Saudi, Iran, Kuwait

State wise Production

  • 1st in India’s total fruit production. It makes up to 1/3rd of total fruits produced in the country
  • • India is the world's leading producer of bananas with a share of around 25% in total output.

    • Andhra Pradesh, Gujarat, Tamil Nadu, Maharashtra, Kerala, Uttar Pradesh, Bihar and Madhya Pradesh contribute more than 70% of the country's banana production.

    • APEDA promotes exports of agricultural & processed food products by providing assistance to the exporters under various components of its scheme such as Infrastructure Development, Quality Development and Market Development.

    In 2016, Jalgaon Banana got GI certification which was registered with Nisargraja Krishi Vigyan Kendra (KVK) Jalgaon.

    • India’s banana export has been rising sharply because of adoption of farm practices as per the global standards.


World production

  • 3rd largest producer of cotton after China and the U.S.A.

State wise Production

  • Gujarat with 23% of total production is the top producer followed by Maharashtra (19%) Telangana(19%)

World trade:

  • Imported from: USA, Russia, UAR, Sudan & Kenya.
  • United States is the leading exporter in the world's cotton market, accounting for 37.8% of global cotton exports, followed by
  • Top cotton producers are India, China, United States, Brazil, Pakistan, Turkey in descending Order.
  • India emerged world top producer.

Total Cropped Area of different crops:-

  • Wheat is the most widely grown crop in the world.
  • West Bengal is the largest rice producing state in India. Almost half of its arable land is under rice cultivation.
  • The country has the largest area under rice cultivation, as it is one of the principal food crops.
  • The cereals occupy about 54 per cent of total cropped area in India.
  • About 14 per cent of the total cropped area in the country is under wheat cultivation. Uttar Pradesh, Punjab, Haryana, Rajasthan and Madhya Pradesh are five leading wheat producing states.
  • The coarse cereals together occupy about 16.50 per cent of total cropped area in the country.
  • Among these, Jowar or sorghum alone accounts for about 5.3 per cent of total cropped area. It is main food crop in semi-arid areas of central and southern India.
  • Maharashtra alone produces more than half of the total jowar production of the country.
  • Bajra occupies about 5.2 per cent of total cropped area in the country.
  • Maize crop occupies only about 3.6 per cent of total cropped area. Maize cultivation is not concentrated in any specific region. It is sown all over India except eastern and north-eastern regions.
  • Pulses occupy about 11 per cent of the total cropped area in the country.
  • Gram covers only about 2.8 per cent of the total cropped area in the country. Madhya Pradesh, Uttar Pradesh, Maharashtra, Andhra Pradesh, Telangana and Rajasthan are the main producers of this pulse crop.
  • Tur (Arhar) is cultivated over marginal lands and under rainfed conditions in the dry areas of central and southern states of the country. This crop occupies only about 2 per cent of total cropped area of India.
  • The oilseeds are produced for extracting edible oils. Drylands of Malwa plateau, Marathwada, Gujarat, Rajasthan, Telangana, Rayalseema region of Andhra Pradesh and Karnataka plateau are oilseeds growing regions of India.
  • Oilseeds together occupy about 14 per cent of total cropped area in the country. Groundnut, rapeseed and mustard, soyabean and sunflower are the main oilseed crops grown in India.
  • Groundnut covers about 3.6 per cent of total cropped area in the country. Gujarat, Tamil Nadu, Telangana, Andhra Pradesh, Karnataka and Maharashtra are the leading producers.
  • Rapeseed and Mustard together occupy only 2.5 per cent of total cropped area in the country. Rajasthan contributes about one-third production while other leading producers are Uttar Pradesh, Haryana, West Bengal and Madhya Pradesh.
  • Jute accounts for only about 0.5 per cent of total cropped area in the country.
  • Cotton occupies about 4.7 per cent of total cropped area in the country.
  • Sugar cane occupies only 2.4 per cent of total cropped area in the country. Uttar Pradesh produces about two-fifth of sugarcane of the country.

With reference to the cultivation of Kharif crops in India in the last five years, consider the following statements :

  1. Area under rice cultivation is the highest.
  2. Area under the cultivation of jowar is more than that of oilseeds.
  3. Area of cotton cultivation is more than that of sugarcane.
  4. Area under sugarcane cultivation has steadily decreased.

Which of the statements given above are


(a) 1 and 3 only

(b) 2, 3 and 4 only

(c) 2 and 4 only

(d) 1, 2, 3 and 4

Ans: a

State wise Production of different Crops in 2019-20 :-

For More Informaton visit or website for Agriculture Data.

Source: Economic Survey, Budget 2020-21

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