India fails to earn revenue from agricultural sector
Agriculture, the backbone of the Indian economy fails to yield revenue since the past two decades.
The study reveals that farming in India has been unprofitable in the past two decades. The study tracked 26 countries and it was found that India along with Ukraine and Vietnam had negative farming revenues. The agriculture sector has failed to earn revenues to India.
The main reason behind such negative revenues is keeping the food prices low in order to avoid inflation. As reported by the Hindustan times, the study looked at previously unmeasured set of indices, including gross receipts — or revenues — to the farm sector to draw that conclusion. Quite simply, agriculture in India suffers negative total revenues. In other words, assets going out of the sector are more than those flowing in.
The agricultural sector in India which is said to be the backbone of the Indian Economy contributing approximately 13.7% gross domestic product(GDP) in 2013 has been unprofitable. The government's effort to boost farming and provide farmers with the best of technology has eventually failed.
According to the Dalwai committee report, the current average income of a farmer is estimated at Rs 77,976 per year, but the Modi government has vowed to double the income of a farmer by 2022.
However, the Economic Survey 2018 pointed out that agriculture in India has become vulnerable due to the changing weather conditions. Approximately seventy million hectares of farm field is still not irrigated and dependent on rainfall. The all India percentage of net irrigated area to total cropped area is even lower at 34.5%.
These reports and surveys concludes that agricultural expenditure in India is more than the income. Thus, the government needs to take precautions before its too late. Policies need to be made to cover up the loss and yield revenue from the agricultural sector.