Aatma Nirbhar Bharat In Agriculture Sector

Table of Contents

With global supply chains being disrupted because of the COVID-19 crisis and the country embroiled in a border standoff with China,
Prime Minister Narendra Modi has given a clarion call for “Aatma Nirbhar Bharat”.

Low hanging fruit

In the context of making India atmanirbhar,
The task of achieving self-reliance and self-sustainability in agriculture is easier and more cost-efficient compared with other sectors of the economy.

India is already a net exporter of agri-produce.
It has been so ever since the economic reforms began in 1991.
The golden year of agri-trade, however, was 2013-14.
That year agri-exports peaked at $43.6 billion while imports were $18.9 billion,
Giving a net trade surplus of $24.7 billion.
But since then, agri-exports have been sluggish and sliding.
In 2019-20, agri-exports were just $36 billion, and the net agri-trade surplus at $11.2 billion.
With this lacklustre performance, talk of doubling agri-exports by 2022 looks almost impossible

On the agri-imports front, The biggest item is edible oils — worth about $10 billion (more than 15 mt).
This is where there is a need to create ‘aatma nirbharta’,
Not by levying high import duties, but by creating a competitive advantage
Through augmenting productivity and increasing the recovery ratio of oil from oilseeds and in case of palm oil, from fresh fruit bunches

While mustard, sunflower, groundnuts, and cottonseed have the potential to increase oil output to some extent, the maximum potential lies in oil palm.
This is the only plant that can give about four tonnes of oil on a per hectare basis
India has about 2 million hectares that are suitable for oil palm cultivation — this can yield 8 mt of palm oil.

Next measures rely on branding of local farm products to be sold globally,
The branding helping to tide over price spirals and making farmers quality-conscious.A branded quality product has the potential to increase India’s post Covid global export share beyond 2%.

It is essential to set up an exclusive agri-business bank, along the lines of those in China, the Philippines and other countries.

Recognising allied activities in agriculture — dairy, animal husbandry, bee-keeping, herbal cultivation and fisheries — in GoI’s Atmanirbhar Bharat Abhiyan (ABA) is welcome.
It is also essential to highlight the fact that their marketing channels have been mostly distorted and less cooperative-driven.
Infrastructure supporting these allied activities must be encouraged as a standalone enterprise,
Especially among the tribal farming communities.

It is the right time to establish an Agricultural Development Council (ADC) on the lines of the GST Council
So as to accelerate the pace of reforms to enhance land leasing, private investment, agricultural R&D, etc.