India’s Resilient Production Systems in Agriculture

Why in News?

India’s agriculture and allied sectors have grown at an average annual rate of 4.4% (constant prices) over the past five years, driven by better farm practices, technological integration, and resilient production systems.

What is India’s agricultural production performance?

• Socio-economic footprint – Agriculture and allied activities account for nearly 20% of country’s gross value added, employ approximately 46.1% of the workforce, and support close to 55% of the population.

• Foodgrains (2024-25) – Output of 357.73 MMT (up by 25.43 MMT from the previous year).
• Key drivers – Rice, wheat, maize, and coarse cereals (millets/Shree Anna), reflects productivity gains, better input use, and stronger institutional support.

• Horticulture – Output of 362.08 MT in 2024–25 (surpassing foodgrains) & long-term growth from 280.70 MT in 2013–14 to 367.72 MT in 2024–25.
• Composition – Fruits, Vegetables & Other crops.

Global Agricultural Markets

• India’s agricultural exports have grown steadily in recent years.
• Agri export earnings – Increased from USD 34.5 billion in FY20 to USD 51.1 billion in FY25, reflecting a CAGR of 8.2%.
• Agri-food exports (FY25) – Including processed food products, amounted to USD 49.43 billion, accounting for about 11.2% of total exports.
• Processed food share – It risen consistently, from 14.9% in FY18 to 20.4% in FY25, indicating a progressive shift within the agricultural export basket.

What is India’s position in the world when it comes to cereals, pulses, millets, horticulture & various cash crops?

What are the key policy initiatives aimed at ensuring resilient agricultural growth?

• Increased budget allocation – Increased from Rs. 21,933.50 crore to Rs. 1,27,290.16 crore in 2025-26, representing a six-fold increase in allocation over 13 years.
• Policy Priorities in Union Budget 2026–27 – Focuses on promotion of high value crops includes
  • Coastal regions - Coconut, Sandalwood, Cocoa, Cashew
  • North Eastern states - Agar trees
  • Hilly areas - Almonds, Walnuts, Pine nuts
• National Food Security and Nutrition Mission (NFSNM) – A centrally sponsored scheme to increase the production of rice, wheat, pulses, and nutri-cereals/coarse cereals in the country.
• Mission for Aatmanirbharta in Pulses (2025–31) – Aims to achieve self-sufficiency in pulses by enhancing domestic production reduce import dependence & paved the way for an “Aatmanirbhar Bharat” in pulses.
• National Mission on Edible Oils (NMEO) – Including the Oil Palm & Oilseeds initiatives, aims to achieve self-reliance in edible oil production by 2030-31.
  • Oilseed mission – Recorded over 18% increase in oilseed area, nearly 55% in production, and about 31% in productivity between 2014-15 and 2024-25.
• Sub-Mission on Seeds and Planting Materials (SMSP) initiative – A centrally sponsored scheme under the "Green Revolution - Krishonnati Yojana".
• Approximately 6.85 lakh Seed Villages have been established, resulting in the production of 1,649.26 lakh quintals of quality seeds.
• Soil Health Card Scheme – Approximately 25.55 crore Soil Health Card have been issued (as of Nov 2025) to promote balanced and site-specific nutrient management.
  • Parameters tested (12) – Nitrogen, Phosphorus, Potassium, Sulphur, Zinc, Iron, Copper, Manganese, Boron, pH, Electrical Conductivity, Organic Carbon.
• Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) – Gross irrigated area share has increased to 55.8% (2025), aims to improve on farm water efficiency by promoting drip and sprinkler irrigation systems.

What are the measures related to Credit, Mechanisation, Technology and health?

• Ground-level agri-credit disbursement (FY 2024–25) – Rs.28.67 lakh crore reflecting the structural expansion of institutional finance to the farm sector.
• Kisan Credit Cards (KCC) – 7.72 crore operative accounts (as of March 2025).
• Custom Hiring Centres (CHCs) – 27,554 established (2014–15 to 2025–26) to enhance smallholder access to farm mechanisation services.
  • CHC – It is a unit comprising a set of farm machinery, implements, and equipment meant for hiring by farmers.
• Livestock Technology & Health
• Vaccinations (since 2020) – Approximately 125 crore against Foot and Mouth Disease (FMD).
• Artificial inseminations (2024–25) - 88.32 million.
• Impact - Boosts livestock productivity, disease resistance, and genetic improvement.

What are the measures for sustainable agriculture, extension, and mission mode initiatives?

• Natural farming – Expanded to 17,632 clusters covering 6.39 lakh hectares, with 15.79 lakh farmers enrolled, promotes low-input, eco-friendly farming practices.
• Kisan Call Centres – Handled 30.65 lakh farmer queries in 2024-25
• Ethanol blending – India saved over Rs.1.44 lakh crore in foreign exchange as of August 2025, reflects a shift towards technology-driven, resource-efficient, and improved production systems.
• Integrated Support for Farmers – Securing stable farm incomes, institutionalising risk mitigation mechanisms, and strengthening cooperative networks.

What are the Price and Income Support & Crop Insurance Protection measures taken?

• Minimum Support Price (MSP) – Announced for 22 mandated crops and fixed at least 1.5 times the cost of production, with upward revisions for the Kharif & Rabi Marketing Season to ensures remunerative prices, stabilizes farm incomes.
• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) – A Central Sector Scheme, over Rs.4.27 lakh crore has been disbursed in 22 instalments (as on 17th March 2026), providing direct income support to farmers.
• Pradhan Mantri Kisan Maandhan Yojana (PMKMY) – Aims to provide social security net for the Small and Marginal Farmers (SMF) by way of pension,
• Enrolled 24.95 lakh farmers as of 2nd Feb 2026, extending social security coverage to small and marginal cultivators.

• Pradhan Mantri Fasal Bima Yojana (PMFBY) – A crop insurance scheme aiming to provide financial protection to farmers against crop loss due to natural disasters (hail, drought, famine), pests, and diseases.
• Insured 4.19 crore farmers during 2024-25, covering 6.2 crore hectares.
• Applications (2016–17 to 2025) – 86 crore+ were processed with claims exceeding Rs.1.90 lakh crore disbursed.
• Growth – Coverage expanded by 32% compared to 2022–23.

What are the few measures for strengthening Cooperatives & Collective Systems?

• PACS Computerisation – Of 67,930 Primary Agricultural Credit Societies (PACS) under computerisation,54,150 have been onboarded onto Enterprise Resource Planning (ERP) platforms, with 43,658 operational.
• New Multipurpose Cooperatives – 18,183 registered (by March 2025).
• Decentralised Grain Storage Programme – Operational in 11 PACS, with 500 new godowns announced in 2024 to enhance local storage capacity.
• Institutional Reforms
  • National Cooperation Policy → governance strengthening.
  • Tribhuvan Sahkari University → cooperative capacity-building.

What are the measures taken for market reforms, value-chain modernisation, and public food distribution?

• Storage projects (as of 28 Feb 2026) – 49,796 storage projects had received financial assistance amounting to Rs.4,832.70 crore.
• Marketing infrastructure projects – 25,009 marketing infrastructure projects had received subsidies totalling Rs.2,193.17 crore.
• e-National Agriculture Market (e-NAM) – Expanded its outreach to 1.8 crore farmers, 2.72 lakh traders & 4,724 Farmer-Producer Organisations (FPOs) across 1,656 mandis in 23 States and 4 UTs, enhancing digital price discovery and inter-market trade.
• Formation & Promotion Scheme (2020–2026) – 10,000 FPOs registered (by 28 Feb 2026).
• Fisheries sector – 2,195 Farmers’ Fisheries Producer Organisations (FFPOs) formed.
• Kisan Credit Card – Benefits extended to 4.39 lakh fishers.
• Food Processing Sector – It accounts for 12.91% of organised manufacturing employment.
• Pradhan Mantri Kisan Sampada Yojana (PMKSY) – 1,185 projects had been completed, strengthening modern processing and cold-chain infrastructure.
• PLI Scheme for the Food Processing Industry (PLISFI) – Aims to modernise food processing, boost competitiveness, and promote high-growth product categories.
• Approved 169 applications, mobilising investments of Rs.9,207 crore, with incentives amounting to Rs.2,162.55 crore disbursed by 31 December 2025.
• One Nation One Ration Card (ONORC) – Achieved 99.8% Aadhaar seeding of ration cards, it has been operational in all 36 States & UTs.
• Fair Price Shops (FPS) – Over 99% of the 5.43 lakh FPS are equipped with electronic point-of-sale (ePoS) devices, facilitating the digitisation of more than 98% of transactions and strengthening transparency in distribution.
• Direct Benefit Transfer (FY24) – Rs.267.6 crore was transferred through DBT to over 10 lakh beneficiaries, improving targeting efficiency and accountability.
• SDGs Linkages – India’s agricultural reforms align national priorities with global sustainability commitments, reinforcing resilience and inclusivity.
  • SDG 2 (Zero Hunger)
  • SDG 12 (Responsible Consumption & Production)
  • SDG 13 (Climate Action)
  • SDG 9 (Industry, Innovation & Infrastructure)

What lies ahead?

• India’s agricultural transformation reflects a balanced approach that combines strong production growth, expanding global market presence, and targeted policy interventions across the farm-to-market value chain.
• As resilient production systems continue to evolve, the expanding role of agriculture provides a strong foundation for deeper integration with allied activities, further supporting rural livelihoods, value addition, and long-term economic stability.

Reference

PIB | India’s Resilient Production Systems in Agriculture