With 70 percent of rural India being dependent on agriculture for their livelihood, agriculture along with its allied sectors forms the backbone of the country. Out of this, two-thirds of the total agricultural land constitutes for the rain-fed area, leading to its reliance on monsoon as India gets the maximum rain during the monsoon that lasts through June-September.
A substantial monsoon not just accounts for a good harvest but it is also essential for a country’s food security. It ensures food availability for the growing population of the country. Moreover, a good rainfall also opens up a new array of opportunities for the investors in agri space, which in turn will give the boost to the entire agricultural sector, leading to farmer’s empowerment.
As per the statistics by NITI Aayog, the agricultural sector is growing 60 per cent more as compared to the non-agricultural sector owing to the normal monsoon this year that has accounted for 40-60 percent higher rainfall against the backdrop of last year. At this rate the agricultural sector is estimated to grow at 3 percent in 2020-21 despite the COVID-19 lockdown.
In the midst of economic slowdown, agriculture sector can be perceived to be a comforting prospect where 17 percent of Indian economy is constituted by the agricultural sector which is higher than manufacturing sectors.
According to Indian Meteorological Department data, this year has received 13 percent higher rainfall between June 1 and July 9 compared to past years. This has led to 32 percent increase in water storage across 123 reservoirs against 17 per cent accountability last year. Consequently, the monsoon has surpassed the average 21 percent water storage of the past 10 years. The good amount of rain is considered to have given a boost to the output where the kharif crop area has risen by 88.2 percent accounting to 432.97 lakh hectares as on July 3.
A substantial output is not just confined for the large domestic market but establishes India as the largest exporter of grains. In 2015, India became the top rice exporter in the world by exporting 10.23 million tonnes leaving behind Thailand.
Analysing the nominal agricultural GDP and keeping in mind the momentum of volume growth, the farm income is estimated to grow at 10-11 percent by March end 2021.
The good harvest in the agricultural sector can improve the farmer’s income. Moreover, growing seasonal crops reduces the dependence on expensive agrochemicals and pesticides. Hence, the farmer’s investment on artificial chemicals is reduced which does not compromise on the quality of crops.
In addition to this, with the use of new technology one can enhance the farming techniques, and consequently revive the financial conditions of the farmer’s. Agriculture being the backbone of the country’s economy necessitates the need to empower the farmers by providing them with up-to date information and advisory.
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