Center Plans to Create Ease of Agri Business Index

The Parliament was informed on Tuesday that the central government is planning to launch an index in order to rank the states on basis of ease of doing agriculture business. 

Minister of State for Agriculture, Parshottam Rupala consented on being asked about the government’s plan to launch such an index. 

"To ensure that reform agenda of the government is implemented by the desired pace by all states/UTs, a need is felt to develop a competitive spirit between the states. Keeping this in mind, to rank the states through an index—ease of doing agri-business—a concept note along with parameters for developing an index has been circulated to all states and union territories inviting their views," he said in a written reply to Lok Sabha. 

Rupala stated that the parameters in the proposed index would focus on increasing production, productivity and price realization as well as a decline in input cost and risk mitigation. He added that the index shall help in fostering agriculture among states by promoting a competitive spirit. 

In November last year, there were reports regarding Centre’s plan to roll out a new Ease of Doing Agri-Business Index, which was to rank the States on the basis of reforms, investment in agriculture, increased productivity, reduction of input costs, and risk mitigation measures. “In future, the Ministry may consider rewarding the higher performing States (both in absolute and incremental terms) by linking the performance with an allocation from flex funds made available in various flagship schemes of this Ministry,” stated a concept note for the Index. 

As Agriculture is a state subject, the reforms and its implementation need a green signal by the States. Similar to this State Ranking Index, Niti Aayog already brings out Agricultural Marketing and Farm Friendly Reforms Index.