How Agriculture Sector Performed In 2019-20

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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.

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.

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.

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.

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

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.