How Agriculture Sector Performed In 2019-20 – Free PDF Download

GROWTH AT CURRENT PRICES

• The growth at current prices was expected to be around 13% in same period, which translates into  an inflationary impact of around 1 per cent.

WHY THIS IS IMPORTANT?

• The difference between agriculture GVA in current and constant prices, which according to some experts gives  a broad idea of how farmers’ incomes are moving.

FULL FINANCIAL YEAR (2019-20) GROWTH

• For the full financial year (2019-20), agriculture and allied activities GVA was pegged at 4 per cent, which was near  the long-term trend for the sector,
• While growth at current prices during the same period was estimated at 4 per cent, meaning an inflationary impact of 7.4 per cent.

REASON FOR THE GROWTH

• In 2019-20 financial year, one big factor that pushed up farm growth was the superlative performance of the southwest monsoon.
• Monsoon rains in 2019, was 110 per cent of the Long Period Average (LPA), which was the best in last 25 years.
• The last time India received rainfall more than 2019 was in 1994, when the actual rainfall in the country was 110% above average rainfall
• Because of the good rains,
• India total food grains production that includes both kharif and rabi is projected to be at a record 292 million tonnes, Which is 36% more than 2018-19.

HAS IT BENEFITTED THE FARMERS?

• Although the prices of agricultural products have increased.
• But all of that might not translate into larger incomes for farmers, because when the produce reached the  market, prices of several crops had crashed.
• Also the data relates to pre-Covid lockdown period.
• Hence it does not reflect the real picture of distress which unfolded from April onwards in the sector

UPCOMING SCENARIO OF AGRICULTURE

• The next data will be of huge importance as many believe Agriculture might be the only sector that may contribute  to the growth in GDP in the Financial year.
• It will depend on several factors like Monsoon, the availability of labourers in states like Haryana and Punjab,  and whether the restaurants and hotels open quickly.
• The onus is now on the government is to make a strong plan so that the resurgent Agriculture sector softens  the blows to the Indian economy.

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