Agriculture sector records 3.9% growth in FY 22

The agriculture sector which accounts for 18.8 per cent of Gross Value Added of the country in 2021-22, has experienced buoyant growth in the past two years. It grew at 3.9 per cent in 2021-22 and 3.6 per cent in 2020-21 showing resilience in the face of Covid-19. According to the Economic Survey, agriculture was least hit by the Covid-19 pandemic. The sector will grow by 3.9 per cent in 2021-22 after growing 3.6 per cent in the previous year.

Significantly, the agriculture sector is now a little short of eight per cent above pre-Pandemic levels, Industrial sector contracted, revived, now nearly 4.1 per cent above pre-pandemic level, Services sector is yet to reach pre-pandemic level.

The Economic Survey 2021-22, released on Monday, said that the average monthly income per agricultural household in the country stood at Rs 10,218 in 2019 as against Rs 6,426 in 2014.

The Economic Survey, tabled by Finance Minister Nirmala Sitharaman in the parliament, cited the data from the 'Land and Livestock Holdings of Households and Situation Assessment of Agricultural Households' (SAS) survey carried out by the National Statistical Office (NSO) during January 1, 2019 to December 31, 2019 period for these numbers.

The SAS report was released in September 2021, while the earlier SAS report was published in 2014.

"The SAS, 2021 reveals that the average monthly income per agricultural household, as per paid out expenses approach, works out to be Rs 10,218. The average monthly income per agricultural household was Rs 6,426 as per the last SAS Report of 2014 estimated by the same approach," the Survey said.

The Survey said that crop income, with a share of 37 per cent, continues to be an important source of farmer's income, but there is a visible diversification in the sources of income of the farmers.

However, the SAS reports also show the increasing fragmentation of holdings. The average size of household ownership holdings has declined from 0.725 hectare in 2003 to 0.592 hectare in 2013 and further to 0.512 hectare in 2019.

Meanwhile, it is expected that higher access to concessional institutional credit to farmers and greater participation of private corporate sector, whose investment rates are currently as low as two to three per cent in agriculture, may help in improving private investment in agriculture. Private corporate investments need to be crowded in by offering an appropriate policy framework and increase in public investment along the entire agricultural value system.