Foodgrain output set to scale new peak in 2025

India’s agricultural sector is on the brink of significant advancements, particularly in foodgrain production. The Agriculture Ministry’s optimistic projections indicate a record kharif (summer) foodgrain production of 164.7 million tonnes for the 2024-25 crop year. This growth is largely attributed to favorable monsoon conditions. However, challenges remain, especially in the production of pulses and oilseeds. As the country looks toward 2025, the agricultural landscape is evolving, with both opportunities and hurdles on the horizon.

Record Foodgrain Production Expected

The Indian agricultural sector is set to achieve remarkable milestones in foodgrain production. According to the Agriculture Ministry, kharif foodgrain production is projected to reach an unprecedented 164.7 million tonnes for the 2024-25 crop year, which ends in June 2025. This forecast is a result of favorable monsoon rains that have positively impacted crop yields across the country. Agriculture Secretary Devesh Chaturvedi highlighted the significance of the good kharif crop, attributing it to normal rainfall patterns.

In addition to the summer crop, winter crop planting has also shown steady progress. By mid-December 2024, wheat had been sown across 29.31 million hectares, contributing to a total rabi (winter) crop coverage of 55.88 million hectares. Despite the promising outlook, Chaturvedi cautioned about potential heat waves in February and March, which could adversely affect the winter wheat harvest. Nevertheless, the overall crop prospects for the year appear bright, with growth projections for the agricultural sector estimated at 3.5-4 percent for 2024-25, a significant increase from the previous year’s growth of 1.4 percent.

Challenges in Pulses and Oilseeds Production

While the outlook for foodgrain production is optimistic, the Indian agricultural sector faces persistent challenges, particularly in pulses and oilseeds. The government recognizes the need for self-sufficiency in these critical crops. To address this issue, the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) is set to launch in 2025, with a substantial budget of Rs 10,103 crore. This initiative aims to reduce import dependency through targeted interventions and increased support prices for farmers.

Despite localized floods and droughts affecting crops in states like Maharashtra, Uttar Pradesh, and Rajasthan, the agricultural sector is showing signs of recovery. Climate change has also played a role in impacting yields, particularly for onions and tomatoes in certain regions. Agri-economist S Mahendra Dev attributes the overall improvement in the sector to a combination of good monsoon conditions and rising rural demand. However, the government must remain vigilant and proactive in addressing these challenges to ensure sustainable growth in pulses and oilseeds production.

Technological Advancements and Government Support

The horticulture sector in India has made remarkable strides, achieving record production levels of fruits and vegetables. This success can be attributed to improved farming practices and the adoption of technology under various government schemes. Innovations such as drones and AI-driven tools are gaining traction, offering immense potential to enhance productivity. Ashish Dobhal, CEO of UPL Sustainable AgriSolutions, emphasized the importance of these technological advancements in transforming the agricultural landscape.

The government’s flagship PM-KISAN scheme has played a crucial role in supporting farmers, disbursing over Rs 3.46 lakh crore to more than 11 crore farmers since its launch in 2018. In September 2024, seven new agricultural schemes were announced, with a combined outlay of Rs 13,966 crore. These initiatives focus on various aspects of agriculture, including digital transformation, crop science, livestock health, and natural resource management. However, despite these advancements, farmer unrest remains a concern, particularly in Punjab and Haryana, where demands for legal Minimum Support Price (MSP) guarantees persist.

The Road Ahead: Balancing Tradition and Innovation

As India moves forward, the agricultural sector faces a critical juncture. The Ministry of Agriculture plans to conduct a benchmarking study comparing its crop insurance scheme, PMFBY, with similar programs globally. This initiative aims to adopt best practices and enhance the effectiveness of the PMFBY ecosystem. While government schemes have shown varying levels of success, experts note that many require revision and targeted intervention to address specific challenges effectively.

The coming year will be pivotal for India’s agricultural sector as it seeks to balance traditional farming practices with technological innovation. Key concerns regarding the effectiveness of MSP implementation and high input costs for fertilizers and pesticides remain. The sector’s ability to navigate these challenges while maintaining production growth will be crucial in achieving ambitious targets for 2025. The success of new initiatives and their implementation will likely determine the trajectory of India’s agricultural sector toward sustainable growth and self-sufficiency in essential crop categories.

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