Favorable Monsoon Fuels Indian Agriculture Sector

Indian agriculture sector is gearing up for a strong performance in the 2024–25 fiscal year, driven by promising monsoon conditions. Principal Secretary to the Prime Minister, P. K. Mishra, expressed confidence in the sector’s outlook. “The monsoon has been good... I am very optimistic this year,” Mishra said in an interview with PTI.

Bouncing Back After a Sluggish FY24

After a slowdown in FY24, when agriculture and allied sectors grew by just 1.4%, the outlook for FY25 is brighter. Agriculture Minister Shivraj Singh Chouhan predicted a rebound, with growth potentially reaching 3.5–4%, thanks to favorable weather and supportive policies.

Consistent Growth Led by Livestock and Fisheries

Between 2016–17 and 2022–23, India’s agriculture sector maintained an average annual growth rate of 5%, driven by surging output in livestock and fisheries. Mishra praised the sector’s resilience, noting its significant contribution even during challenging periods like the pandemic.

Challenges in Pulses and Oilseeds Persist

India continues to face hurdles in reducing its dependence on imports of pulses and oilseeds, despite notable progress. Pulses production has risen from 14 million tonnes to around 24–25 million tonnes over the past decade.

“We’re investing heavily in research and innovation. I believe we’ll see significant advancements soon,” Mishra said, underscoring the government’s commitment to achieving self-sufficiency.

Addressing Tax Concerns in Agriculture

On the issue of high taxes on farm inputs and equipment, Mishra advocated for a balanced perspective. “We can’t look at agricultural taxes in isolation—they must align with broader tax policies,” he explained, calling for a comprehensive approach to address farmers’ concerns.

Strengthening the Sector for FY25 and Beyond

With a favorable monsoon and growth expected to rebound, India’s agriculture sector is on track for a strong FY25. While challenges in pulses and oilseeds remain, ongoing research and thoughtful policies could unlock the sector’s full potential.

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