El Nino Affects Food Grain Production, Falls To 328.8 MT: Economic Survey
Economic Survey revealed that adverse weather conditions lead to decline in Agricultural growth rate, while allied sectors show strong performance
India's food grain production for 2023-24 has dropped to 328.8 million tonnes, down from the previous year, according to the latest Economic Survey. This reduction is mostly due to delayed and poor monsoons caused by El Nino, which have significantly impacted agricultural output.
The agriculture sector's growth rate for 2023-24 is 1.4 per cent, a substantial decline from 4.7 per cent in 2022–23. The survey highlights that adverse weather conditions have played a critical role in this slowdown, particularly affecting food grain production.
Despite these challenges, the total area under oilseeds has expanded significantly. From 25.60 million hectares in 2014-15, it has grown to 30.08 million hectares in 2023-24, marking a 17.5 per cent increase. This expansion has boosted domestic edible oil availability from 86.30 lakh tonnes in 2015-16 to 121.33 lakh tonnes in 2023-24, reducing reliance on imports.
Government initiatives such as the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) have been crucial in supporting farmers. PMFBY, the world's largest crop insurance scheme by farmer enrollment, insured 610 lakh hectares in 2023-24, up from 500.2 lakh hectares in 2022-23.
However, the survey identifies critical challenges threatening the sector's sustainability and growth. The productivity of major crops like rice and wheat remains below global averages, underscoring the need for technological advancements and better resource management.
Inadequate rural infrastructure, including storage, cold chains, and transportation, leads to significant post-harvest losses, impacting farmers' incomes and market supply. Addressing these deficiencies is essential to prevent further economic setbacks.
Allied activities, such as livestock and fisheries, have shown better performance than traditional crops. The livestock sector grew at a Compound Annual Growth Rate (CAGR) of 7.38 per cent from 2014-15 to 2022-23, contributing 30.38 per cent to the total Gross Value Added (GVA) in agriculture and allied sectors. The fisheries sector, crucial to the economy, grew at a CAGR of 8.9 per cent from 2014-15 to 2022-23, supporting approximately 30 million people, particularly marginalised communities.
Government programmes like the Livestock Health and Disease Control Programme, the National Livestock Mission, and the Rashtriya Gokul Mission are aimed at improving productivity and infrastructure in the livestock sector. Similarly, the Fisheries Infrastructure Development Fund (FIDF) and the Pradhan Mantri Matsya Sampada Yojana (PMMSY) focus on enhancing productivity, credit access, and infrastructure in fisheries. In 2022-23, India achieved a record fish production of 17.54 million tonnes, ranking third globally and accounting for 8 per cent of global production.
Additionally, the survey projects India's economy to grow at 6.5 to 7 per cent in the current financial year ending March 2025, according to a finance ministry report released on Monday. This forecast is below the 7.2 per cent growth predicted by the country's central bank. The growth projection is also lower than the 8.2 per cent growth recorded in the previous year and the revised estimates of 6.8 to 7.2 per cent by private economists and rating agencies.
