Agricultural Policy Monitoring and Evaluation 2023

14. India

Support to agriculture

Net support to producers in India has been negative throughout the last two decades, but fluctuates markedly. Domestic producers have been implicitly taxed on average, as budgetary payments to farmers did not offset the price-depressing effect of complex domestic marketing regulations and trade policy measures. Virtually all gross producer transfers (whether positive or negative) come in potentially most production – and trade-distorting forms – a consistent pattern since the early 2000s, the period for which support data are available.

Support to producers in 2020-22 includes budgetary transfers corresponding to 11% of gross farm receipts, positive Market Price Support (MPS) of +1.8% of gross farm receipts for commodities that are supported and negative MPS of as much as -27.5% for those that are taxed. Overall, this led to negative net support of -15% of gross farm receipts in 2020-22, against a backdrop of increasing prices at the border for many of the exported commodities covered, particularly wheat, maize, and milk. Export restrictions apply since 2022 to various types of rice, wheat, sugar, and related products (e.g. wheat flour).

Single Commodity Transfers (SCT) are mainly composed of MPS but vary by commodity. Most commodities were implicitly taxed in 2020-22, effectively reducing receipts by half for products such as banana or mango. Commodities with positive SCTs – ranging between 8% and 30% of commodity receipts in the same period – include sugar, chickpeas, other pulses, and poultry meat.

Budgetary transfers to producers are dominated by large subsidies for variable input use, such as fertilisers, electricity, and irrigation water. However, budgetary allocations to the direct income transfer programme, PM-KISAN, have been increasing since its implementation in 2018 and now represent 7.2% of budgetary spending.

Public expenditures financing general services to the sector (General Service Support Estimate, GSSE), mainly related to investments in off-farm irrigation systems, are around half the level of subsidies for variable input use. Expenditures for GSSE increased to 4% of the value of agricultural production in 2020‑22, from 3% in 2000-02.

Policies that affect farm prices provide implicit support to consumers. Food subsidies provided through the Targeted Public Distribution System, whose allocations increased substantially during the COVID-19 pandemic, also reduce costs for consumers. The consumer support estimate is 44% of expenditure on average across all commodities in 2020-22.

Recent policy changes

Following annual increases in Minimum Support Prices (MSP) in June 2022, the government of India (GoI) increased MSPs for several summer-planted crops, including rice and maize. Similarly, it raised MSPs for several winter-planted crops in October 2022, including rapeseed, wheat, and lentils.

The Department of Fertilizers of the Ministry of Agriculture and Farmers’ Welfare (MAFW) increased fertiliser subsidies in April 2022 and November 2022 for summer- and winter-planted crops in response to rising international fertiliser prices. This includes support for domestically produced fertilisers through freight subsidies to cover transport from producer states to other parts of the country.

Several programmes introduced in 2022 focus on digitalisation and agri-environmental measures. The Agricultural and Processed Food Products Export Development Authority signed a Memorandum of Understanding with the National Research Development Corporation in April to implement the Agri-Export Policy and strengthen commodities’ export value chains by disseminating technologies to promote climate-resilient agriculture. In May, the GoI introduced new support for the use of drones in agricultural activities, particularly to assess the state of crops and spray fertilisers and pesticides, and for digitising land records.

India introduced export restrictions for several commodities in 2022 with an open-ended timeframe and the objective of stabilising fluctuations in domestic prices following Russia’s war of aggression against Ukraine. Commodities affected by export bans, duties, or permits include various types of rice, wheat, sugar, and related products (e.g. wheat flour).

In November 2022, the Ministry of Consumer Affairs removed the oilseeds and oil stock limits previously imposed on wholesalers and traders. The measure had been introduced in 2021 to address rising domestic prices for edible oils by discouraging stockholding and monitoring consumption.

Assessment and recommendations

• Environmental sustainability and resilience measures in agriculture – particularly for climate-change adaptation – have been gaining prominence in India, mainly through programmes focused on conserving water, altering crop-management practices, investing in technologies for crop production and developing new cultivars. This is a commendable response to increased environmental pressures and rising threats from climate change.

• However, agricultural support could further align with climate-change mitigation and adaptation efforts. In particular, scaling back variable input subsidies (fertiliser, irrigation water and electricity) can directly lower greenhouse gas (GHG) emissions and increase flexibility to adjust production systems in response to a changing climate. These funds could be used to train farmers in more efficient and sustainable input use by ensuring that extension systems focus on climate change, sustainability, digital skills, and resilience.

• India’s Nationally Determined Contribution (NDC) includes an economy-wide emission-intensity-reduction target, but no sector-specific targets. Nonetheless, several sector-specific programmes aim to mitigate GHG emissions by promoting energy conservation, alternative fuels from renewable technologies, water conservation, afforestation, land and waste management, increased fertiliser efficiency, crop diversification, lower-methane-emission rice production, and by avoiding crop residue burning. These efforts should be enhanced and monitoring their impacts on GHG emissions improved through well-defined targets.

• As general services continue to focus on irrigation expansion, any new investments in irrigation should be better co-ordinated with water management objectives and help reduce water consumption in dry or groundwater depleting regions. Overall, long-term transitional efforts could focus on enhanced collaborative planning and multi-disciplinary research that accounts for India’s regional diversity.

• Greater emphasis on general services can boost needed investment in agricultural research and development and innovation. In particular, increased investments in the agricultural knowledge system and knowledge transfer through Farmer Producer Organisations could ensure sustained and sustainable productivity growth. Promoting new technologies and production practices is important for GHG emission reduction in the livestock sector – the primary contributor to GHG emissions in India.

• Restrictive domestic marketing policies and border measures reduce prices below those on international markets over most of the period reviewed. Developing the electronic National Agricultural Market (e-NAM) set up in 2016 should remain a priority to foster efficient markets and competitive agro-food supply chains across states. In addition, the 2017 model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act should be implemented in a more harmonised and consistent way across states, and synchronised with reforms to the MSP system through coherent plans. Complementing these programmes with investments in transport infrastructure, marketing, training, and other general services to agriculture will help farmers reap the benefits in productivity and income. Budgetary allocations for rural infrastructure and digitalisation in agriculture in the 2021 and 2022 Union Budgets are positive steps in this direction.

• The large share of employment in agriculture compared to its GDP contribution reflects the persistent labour-productivity gap relative to other sectors and translates into low farm incomes. In the short-to-medium term, direct cash transfers (such as through PM-KISAN) can support the poorest farmers’ livelihoods and adjustment to new market conditions. In the longer term, policies focused on education and financial services are needed to facilitate significant structural adjustments, including the transition of farm labour to other activities and consolidation towards farm operations sufficiently large to exploit economies of scale.

• India is an important agro-food exporter. The Agricultural Export Policy (AEP) framework adopted in 2018 helped reduce uncertainty and transaction costs throughout supply chains by easing export restrictions on organic and processed agricultural products. However, recent export restrictions on products such as rice, wheat, sugar, onions, and related products directly affect India’s reliability as a supplier, and exacerbate the persistent challenge of low farm incomes. An extension of the AEP to all agri-food products should be considered to create a stable and predictable market.

• Recent reductions in tariffs and relaxation of quantitative restrictions on selected pulses, albeit temporary, are additional positive steps towards improving food security and diversifying diets. Together with domestic marketing reforms, easing export and import restrictions would make the market more predictable and increase incentives for producers and traders to invest in supply chains.

• India made significant progress eliminating inefficiencies in the food-distribution system in the period before the COVID-19 pandemic, and these efforts should continue. The experimental replacement of physical grain distribution with direct cash transfers could be gradually expanded, including by drawing on recommendations made by the High-Level Commission on Restructuring the Food Corporation of India, which suggested focusing initially on cities with populations over 1 million, followed by grain surplus states.

Figure 14.1. India: Development of support to agriculture

 

 

 

 

 

Source: OECD (2023), “Producer and Consumer Support Estimates”, OECD Agriculture statistics (database), http://dx.doi.org/10.1787/agr-pcse-data-en.

Figure 14.2. India: Commodity-specific transfers as a percentage of commodity gross farm receipts, 2020-22

Source: OECD (2023), “Producer and Consumer Support Estimates”, OECD Agriculture statistics (database), http://dx.doi.org/10.1787/agr-pcse-data-en.

Table 14.1. India: Estimates of support to agriculture

Million USD

	2000-02	2020-22	2020	2021	2022p
Total value of production (at farm gate)	112 282	445 545	439 502	457 177	439 957
of which: share of MPS commodities (%)	64.75	76.38	75.79	75.59	77.75
Total value of consumption (at farm gate)	109 060	391 773	372 704	404 752	397 862
Producer Support Estimate (PSE)	-2 709	-73 926	-40 665	-80 792	-100 323
Support based on commodity output	-11 243	-126 253	-87 818	-133 431	-157 511
Market Price Support1	-11 243	-126 570	-88 466	-133 731	-157 513
Positive Market Price Support	3 583	9 787	7 749	9 274	12 339
Negative Market Price Support	-14 827	-136 357	-96 215	-143 005	-169 852
Payments based on output	0	317	648	301	2
Payments based on input use	8 519	43 839	38 698	43 304	49 514
Based on variable input use	8 519	43 372	38 245	42 828	49 041
with input constraints	0	0	0	0	0
Based on fixed capital formation	0	394	399	386	398
with input constraints	0	0	0	0	0
Based on on-farm services	0	73	54	89	75
with input constraints	0	0	0	0	0
Payments based on current A/An/R/I, production required	0	0	0	0	0
Based on Receipts / Income	0	0	0	0	0
Based on Area planted / Animal numbers	0	0	0	0	0
with input constraints	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	8 231	8 232	8 975	7 488
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	8 231	8 232	8 975	7 488
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	0	0	0	0	0
Based on long-term resource retirement	0	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0
Miscellaneous payments	15	257	223	361	187
Percentage PSE (%)	-2.31	-14.98	-8.34	-15.84	-20.18
Producer NPC (coeff.)	0.91	0.78	0.83	0.77	0.73
Producer NAC (coeff.)	0.98	0.87	0.92	0.86	0.83
General Services Support Estimate (GSSE)	3 526	17 278	16 623	17 662	17 550
Agricultural knowledge and innovation system	402	1 217	1 096	1 274	1 281
Inspection and control	25	415	379	334	531
Development and maintenance of infrastructure	2 021	14 687	14 189	15 085	14 788
Marketing and promotion	14	19	6	12	39
Cost of public stockholding	1 044	931	947	953	894
Miscellaneous	21	9	6	4	17
Percentage GSSE (% of TSE)	..	..	..	..	..
Consumer Support Estimate (CSE)	14 692	152 834	150 272	144 600	163 629
Transfers to producers from consumers	10 856	110 386	76 711	116 574	137 873
Other transfers from consumers	-224	-89	-19	-80	-167
Transfers to consumers from taxpayers	4 222	44 105	74 446	29 855	28 013
Excess feed cost	-163	-1 568	-866	-1 749	-2 090
Percentage CSE (%)	14.12	43.96	50.38	38.57	44.24
Consumer NPC (coeff.)	0.91	0.78	0.83	0.78	0.74
Consumer NAC (coeff.)	0.88	0.69	0.67	0.72	0.69
Total Support Estimate (TSE)	5 040	-12 543	50 404	-33 274	-54 760
Transfers from consumers	-10 632	-110 297	-76 692	-116 494	-137 706
Transfers from taxpayers	15 896	97 842	127 115	83 299	83 113
Budget revenues	-224	-89	-19	-80	-167
Percentage TSE (% of GDP)	1.02	-0.44	1.89	-1.05	-1.57
Total Budgetary Support Estimate (TBSE)	16 283	114 027	138 870	100 457	102 753
Percentage TBSE (% of GDP)	3.33	3.65	5.21	3.16	2.95
GDP deflator (2000-02=100)	100	191	174	185	215
Exchange rate (national currency per USD)	47.26	76.31	74.23	74.50	80.20

.. Not available

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for India are: wheat, maize, rice, soybean, rapeseed, groundnuts, chick pea, other pulses, potatoes, onion, tomatoes, mango, bananas, sugar, cotton, milk, bovine meat, sheep meat, poultry and eggs.

Source: OECD (2023), “Producer and Consumer Support Estimates”, OECD Agriculture statistics (database). http://dx.doi.org/10.1787/agr-pcse-data-en.

Description of policy developments

Overview of policy trends

Food security has been an important objective of agricultural and trade policy since India’s independence in 1947. Food shortages in the early 1960s made crop productivity and farm output a key policy ambition. While scope to further expand the area under cultivation was limited, the advent of the “green revolution” in the mid-1960s raised crop productivity through improved technologies and seed varieties. This was accompanied by expanded extension services and increased use of fertilisers, pesticides, and irrigation.

The government of India (GoI) introduced several marketing regulations affecting the sale, stocking and trading of agricultural commodities. The Essential Commodities Act (ECA) introduced in 1955 provided for the control of production, supply, distribution, and pricing of essential commodities. During the 1960s and 1970s, most states also enacted and enforced Agricultural Produce Markets Regulation (APMR) Acts, with the first point of sale of agricultural products occurring at regulated market yards (mandis) under the responsibility of Agricultural Produce Market Committees (APMC). Two institutions were set up in 1965 to manage prices and distribution of wheat and rice, namely the Food Corporation of India (FCI) and the Agricultural Prices Commission, later renamed the Commission for Agricultural Costs and Prices (CACP). These institutions introduced complex domestic marketing regulations and border measures that increasingly penalised Indian farmers who often received less than international prices for their products.

In the 1970s, several government programmes were set up to increase production, covering industrial organisation, research, finance, and trade. In the case of milk production and processing, this took place at three different levels:

• At the farm-level, dairy farmers were organised into co-operatives and provided with advanced technologies, such as animal breeds that produced more milk.

• At the district level, co-operative unions were formed, who owned and operated milk processing plants as well as storage and transport equipment and provided animal health services.

• At the state level, state federations conducted and co-ordinated the nation-wide marketing of milk.

Government funding for agricultural research and extension increased, and many State Agricultural Universities (SAU) were set up. Institutional lending to farmers expanded by directing commercial banks (nationalised from 1969) to provide credit to agriculture. New financial institutions were established, such as the National Bank for Agriculture and Rural Development (NABARD) in 1982 and regional rural banks. Import competition was highly restricted to allow domestic agricultural production to increase.

In the 1980s and 1990s, yield-enhancing “green revolution” techniques were increasingly used, reaching new regions and crops such as pulses, oilseeds, and coarse grains. Broader economic deregulation at that time largely bypassed agriculture, in part because of the prevalence of state regulations in agriculture. From 1980 to 1999, budgetary support to agriculture increased more than tenfold.

In the 2000s, agricultural policies focused increasingly on enhancing productivity and farmers’ incomes. The National Agricultural Policy (NAP), formulated in 2000, prioritised increasing cropping intensity on existing agricultural land, developing rural infrastructure, and developing and disseminating agricultural technologies. The National Policy for Farmers (NPF), approved in 2007, identified a need to focus more on the economic well-being of farmers rather than just on production.

The Eleventh Five-Year Plan 2007-12 focused on bringing technology to farmers, improving the efficiency of investments, improving access for the poor to land, credit and skills and addressing water management concerns. The Twelfth Five-Year Plan 2012-17 was articulated around more budgetary support to agriculture and to infrastructure along with an aim to improve the functioning of markets, more efficient use of natural resources, and improved delivery of government services such as credit and animal health.

The 2012-17 plan established the Targeted Public Distribution System (TPDS) to replace the previous Public Distribution System (PDS, established in 1997). The new system aimed to reduce the amount of grain released from government stocks for distribution that did not reach intended beneficiaries.1 In addition, the plan redirected some food subsidies to other welfare schemes to better target the poor, introduced policies specific to individual states or areas, and redefined the definition of “poor” for the purpose of the TPDS. The 2013 National Food Security Act (NFSA) further addressed these concerns.

In 2016, the GoI set the target of doubling farmers’ income by 2022‑23 and by 2018 five-year plans were replaced by a framework of three-year action agendas. These agendas were prepared by the National Institution for Transforming India (NITI Aayog, the erstwhile Planning Commission of India), a policy think-tank of the government of India. The Agriculture Export Policy framework was established at the end of 2018, aiming to double agricultural exports by 2022-23 and boost the value-added of agricultural exports. To address farm indebtedness, several states implemented support packages for farm loan waivers between 2017 and 2020.

The only output support payments were introduced between 2018 and 2021 for clearing of arrears for sugar cane deliveries. The subsidies were provided directly to sugar cane farmers. These were replaced in 2022 by a support scheme for first-stage buyers of sugar cane (the scheme for providing assistance to sugar mills for expenses on marketing costs and other processing costs).

Marketing regulations under the Agricultural Produce Market Committees (APMC) Acts were progressively amended in 2003, 2007 and 2017. This was to address concerns around highly fragmented markets, inadequate physical marketing infrastructure, large numbers of intermediaries in supply chains and insufficient remuneration to farmers. Even though state governments were encouraged to adopt similar reforms, implementation of agricultural marketing reforms remained highly differentiated across India’s states.

In June 2020, the GoI initiated reforms to domestic agricultural marketing regulations as part of a COVID-19 support package. The proposed reforms included a set of ordinances to deregulate major food crops from the 1955 ECA, allow farmers to sell their agricultural products outside of government-regulated markets and allow barrier-free inter- and intra-state trade of agricultural commodities. The central government had also proposed providing a legal framework for farmers to facilitate contract farming schemes with processors and other market actors in supply chains to reduce price risk. However, on 29 November 2021, the Parliament approved a bill withdrawing the three laws. Moreover, in December 2021, the GoI set up a committee to review the legal framework for the MSP system.

Table 14.2. India: Agricultural policy trends

Period	Broader framework	Changes in agricultural policies
1950-1965	Expansion of agricultural area was the main source of output growth	Agrarian reforms (abolition of intermediary landlordship, imposition of land ceiling) Strengthening of co-operative credit institutions Essential Commodities Act 1955
1965-1980	Increase in productivity main was the source of growth “green revolution”	Promoting the adoption of technological breakthroughs in rice and wheat production Policy support for marketing, research and credit Introduction and formalisation of lending to priority sectors, including agriculture New institutions, e.g. State Agricultural Universities, Food Corporation of India, Agricultural Prices Commission Programmes to increase production and processing of milk (support to breeds producing more milk, producer organisations, and processing and transport equipment) Minimum support prices
1980s	Widespread use of technology in major crop areas	Some delicensing and deregulation Increase in subsidies to agriculture
1990s	Economic and trade liberalisation in agriculture lags behind general economic reforms	Cautious relaxation of trade protection in some products, e.g. sugar, cotton, edible oils, wheat, rice Increases in input subsidies Targeting of beneficiaries of public distribution system of food grains
2000s	Demand-driven shift towards producing more fruit, vegetables and livestock products Increasing price gaps between international and domestic prices for producers	Alternate tightening and loosening of market and trade regulations (including export restrictions) Agricultural marketing regulations influencing pricing, procuring, stocking, and trading of commodities Large increases in input subsidies, including credit Support to high productivity seeds particularly cotton
Since 2010	Major participant in world markets for some commodities Continued price gaps between international and domestic prices taxing producers Increasing direct payments to producers Increasing support to consumers	More structured interaction between central and state level authorities Expansion of food subsidies and 2013 National Food Security Act Pilots to replace physical distribution of grains with cash transfers in selected states and Union Territories Agriculture Export Policy framework aimed at ensuring processed and organic products are not subject to export restrictions Doubling Farmers’ Income by 2022-23 action plan State-level support packages for farm loan waivers Direct income transfer programme PM-KISAN Changes to domestic agricultural marketing regulations initiated in 2020 as part of the COVID-19 economic support package; withdrawal of reforms at the end 2021 Export restrictions applied to several commodities in 2022 (rice, wheat, sugar, and related products)

Over the past two decades, producer support was composed of negative market price support (MPS), and budgetary allocations, including almost exclusively input subsidies. India’s percentage PSE fluctuated markedly, registering a high of zero in 2000, a low of ‑31% in 2007, followed by large swings before increasing negative support in 2021-22 (Figure 14.4). These variations were driven primarily by changes in the relative levels of domestic and international prices underlying MPS, while input subsidies followed a more steadily increasing trend. The particularly large absolute size of negative MPS in 2011-13 (and to some extent in 2007 and 2008) coincides with periods of high international commodity prices not or only partially transmitted to the domestic market, due at least in part to India’s use of export-impeding measures (for example, export restrictions or export bans applied in several of those years to wheat, non-basmati rice, chickpea, sugar and milk). The negative value of the PSE reflects that, on average, domestic producers were implicitly taxed, as the increasing budgetary payments to farmers did not offset the price-depressing effect of complex domestic regulations and trade policy measures. Payments not requiring production have been increasing since 2018, driven by higher budgetary allocations to the direct income transfer programme Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Against a backdrop of increasing reference prices for the exported commodities covered since 2020, MPS has been higher than during 2015‑19.

Figure 14.3. India: Level and PSE composition by support categories, 2000 to 2022

Notes: A/An/R/I:Area planted/Animal numbers/Receipts/Income.

Payments not requiring production include Payments based on non-current A/An/R/I (production not required) and Payment based on non-commodity criteria. Other payments include Payments based on non-current A/An/R/I (production required) and Miscellaneous payments.

Source: OECD (2023), “Producer and Consumer Support Estimates”, OECD Agriculture statistics (database), http://dx.doi.org/10.1787/agr-pcse-data-en.

Main policy instruments

Agriculture and food is governed via six major policy channels: 1) managed prices and marketing channels for many farm products; 2) subsidised farm inputs; 3)  general services for the agricultural sector as a whole; 4) making certain food staples available to selected groups of the population at government-subsidised prices; 5) regulated border transactions through trade policy; and more recently, 6) the income support scheme PM-KISAN (OECD/ICRIER, 2018[1]; ICRIER, 2022[2]; Gulati, Kapur and Bouton, 2020[3]).

States have constitutional responsibility for many aspects of agriculture, but the central government sets national approaches to policy and provides the necessary funds to implement programmes at state level. The central government (Union Cabinet) is responsible for some key policy areas, notably international trade policies, and for implementation of the National Food Security Act (NFSA) of 2013.

Policies governing the marketing of agricultural commodities in India – for both producers and the food chain – include the national Essential Commodities Act (ECA) and the state-level APMC Acts. These acts regulate the pricing, procuring, stocking, and trading of commodities. Farmers bring their produce to sell in regulated wholesale markets (or mandis). This infrastructure is also used for government procurement under the minimum support price system. Differences exist among states in the status of their respective APMC Acts and in how these acts are implemented.2 The electronic portal (electronic National Agricultural Market, e-NAM) set up in 2016 and the 2017 model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act were shared with state governments as a recommendation for adoption.3 E-NAM currently integrates 1 000 APMC markets in 18 states and 3 Union Territories (UTs); almost 17 million farmers and 150 000 traders are registered on the e-NAM platform (Government of India, 2021[4]).

Based on the recommendations of the CACP, the central government establishes a set of minimum support prices (MSP) for 23 commodities each year. The CACP bases its recommendations on the average cost of production at both the actual covered cost of production and the imputed value of family labour. State governments may also provide a bonus payable over and above the MSP for some crops. National and state-level agencies operating on behalf of the Food Corporation of India (FCI) can buy wheat, rice and coarse grains as well. Several other agencies can buy pulses, oilseeds and cotton at MSP – including through the Pradhan Mantri Annadata Aay Sanrakshan Yojna (PM-AASHA) programme introduced in 2018 – and some horticulture commodities without MSP are also procured. However, procurement under the price support scheme effectively operates mainly for wheat, rice and cotton, and only in a few states.

Input support policies enable agricultural producers to obtain farm inputs at subsidised prices. Policies governing the supply of fertilisers, electricity and water are the largest of these. Other supported inputs are seeds, machinery, credit, and crop insurance. State-level loan debt waivers where local governments compensate lending institutions for forgiving debt to farmers are increasingly used. About 30% of agricultural loans continue to come from non-institutional sources (e.g. moneylenders), as opposed to financial institutions such as commercial banks (Reserve Bank of India, 2019[5]).

General services policies focus on programmes for the development and maintenance of infrastructure, particularly related to irrigation. Budgetary support is also significant for public stockholding and for agricultural knowledge and innovation.

Public distribution of food grains is done under the joint responsibility of the central and state governments. The TPDS operates under the NFSA in all states and UTs. Other Welfare Schemes (OWS) also operate under the NFSA. The central government allocates food grains to state governments and the FCI transports food grains from surplus states to deficit states. State governments distribute the food grain entitlements by allocating supplies within the state, identifying eligible families, issuing ration cards, and distributing food grains mainly through Fair Price Shops.

India’s Foreign Trade Policy is formulated and implemented by the Directorate General of Foreign Trade (DGFT) and announced every five years. It is reviewed and adjusted annually in consultation with relevant public agencies. The Basic Customs Duty (BCD), also known as the statutory rate, is agreed at the same time as the approval of the annual budget. In contrast to previous five-year Foreign Trade Policy frameworks, the latest Foreign Trade Policy 2023 – effective as of 1 April 2023 – does not include an end date.

Agricultural exports have been managed for several decades through a combination of export restrictions, including export prohibitions, licensing requirements, quotas, taxes, minimum export prices,4 and state trading requirements. Whether these restrictions are enforced or not may change several times per year, according to domestic supplies and prices. The 2018 Agriculture Export Policy framework includes three main areas for action. First, ensuring that processed agricultural products and organic products are not subject to export restrictions. Second, undertaking consultations among stakeholders and Ministries to identify those essential food security commodities to which export restrictions may be applied under specific market conditions. Third, reducing import barriers applied to agricultural products for processing and re-exporting.

The Agricultural and Processed Food Products Export Development Authority (APEDA) is under the responsibility of the Ministry of Commerce and Industry (MoCI). It provides financial assistance to exporters in the form of transport support.5

The PM-KISAN scheme provides an annual direct income transfer of INR 6 000 (USD 84) per farmer to all farmers with land titles. The payment does not require farmers to produce, is irrespective of the farm size, and may be used for any need.

India ratified the Paris Agreement on Climate Change on 2 October 2016. India updated its Nationally Determined Contribution (NDC) in August 2022. The 2022 NDC comprises eight goals, three of which are quantitative targets to be achieved up to 2030: to reduce the emissions intensity of the GDP by 45% from the 2005 level; to achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources; and to create an additional carbon sink of 2.5 billion to 3 billion tCO₂eq through additional forest and tree cover.

Mitigation efforts to reduce GHG emissions from agriculture are largely through production techniques that improve emissions intensity (e.g. initiatives such as horticulture land extension, increased rice intensification systems, direct-seed rice cultivation, solar pumps, micro-irrigation, neem coated urea scheme, bio-fertilisers, balanced feedstock, and bypass protein for livestock).  The Union Budget 2022-23 promotes “chemical-free natural farming” throughout the country. Initially, the focus is on farmers’ land in 5 km wide corridors along the Ganga river.

Climate change adaptation policies in agriculture

India’s agricultural sector is highly vulnerable to the effects of climate change and extreme weather events. Since the mid-1950s, India has experienced a rise in average temperatures, a decrease in monsoon precipitation, increased frequencies of extreme temperature, rainfall and drought events, an increase in the intensity of severe cyclones, and other changes in the monsoon system (Ministry of Earth Sciences, 2020[6]).

Environmental sustainability and resilience measures in agriculture – and climate-change adaptation measures in particular – have been gaining prominence, notably through programmes called “missions”. India’s 2008 National Action Plan on Climate Change (NAPCC) included four missions focused on adaptation efforts: (1) sustainable habitats; (2) optimising water-use efficiency; (3) creating ecologically-sustainable climate-resilient agricultural production systems; and (4) safeguarding the Himalayan glaciers and mountain ecosystems. These missions include initiatives related to water usage, disaster management, biodiversity conservation, and ecosystem protection. In addition, India implements specific schemes that promote organic farming, efficient irrigation systems, watershed management, and improved soil health and climate-resilient agro-ecological systems.

The National Mission for Sustainable Agriculture (NMSA) within the NAPCC became operational in 2014‑15, promoting soil and moisture conservation measures; comprehensive soil health management; efficient water management practices, and mainstreaming rain-fed technologies. “Farm Water Management” was implemented as one of the components of NMSA with the objective of enhancing water use efficiency by promoting technological interventions such as drip and sprinkler technologies, efficient water application and distribution systems, and secondary storage. Thereafter, these activities have been subsumed under the “Per Drop More Crop (PDMC)” component of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) scheme in 2015-16. This scheme prioritises water conservation and its management in agriculture with the objective to extend the area under irrigation while preserving water resources.

Also under the NMSA, “Rainfed Area Development” focuses on Integrated Farming Systems to enhance productivity and minimise risks associated with climatic variability. Under this system, crops and cropping systems are integrated with other activities such as horticulture, livestock, fisheries, agro-forestry, and beekeeping to support farmers by providing additional income opportunities and mitigate the impacts of droughts, floods, or other extreme weather events. The Mission for Integrated Development of Horticulture (MIDH) includes a sub-component focused on “Creation of water resources”, while the National Food Security Mission (NFSM) includes components such as “Water Carrying Pipes” and “Mobile Rain Gun” focused on hydrological infrastructure and water-use efficiency.

“Soil Health Management” is another component under the NMSA. It promotes integrated nutrient management through targeted use of mineral fertilisers, including secondary and micro-nutrients, in conjunction with organic manures and bio-fertilisers to improve soil health and productivity. It also improves soil and fertiliser testing facilities, providing soil test-based recommendations to farmers for improving fertility. The Soil Health Card implemented in 2015 provides information to farmers about the nutrient status of their soil and recommends the appropriate dosage of nutrients to improve its health and fertility.

India is implementing specific schemes to promote organic farming, including the Organic Value Chain Development for North-East Region and the MIDH component “Adoption of Organic Farming” (in addition to the above-noted Paramparagat Krishi Vikas Yojana Mission). Missions such as the National Mission on Agricultural Extension and Technology aim to improve soil health and climate-resilient agro-ecological systems through technical assistance.

The GoI has been covering part of the premium for crop insurance through crop insurance schemes since 2000. These include the National Agricultural Insurance Scheme, the Modified National Agricultural Insurance Scheme, the Weather Based Crop Insurance Scheme, the Coconut Palm Insurance Scheme, the National Crop Insurance Program, the Restructured Weather Based Crop Insurance Scheme, and most recently, the Pradhan Mantri Fasal Bima Yojna (PMFBY) scheme. PMFBY, introduced in 2016, provides insurance to farmers for crop losses due to monsoon fluctuations or other extreme weather events.

Public-sector research focuses on developing new crop varieties and management practices to improve yields and tackle pests/diseases for various agro-climatic conditions. The Indian Council of Agricultural Research (ICAR) launched the National Innovations in Climate Resilient Agriculture (NICRA) project in 2011 to enhance the resilience of Indian agriculture to climatic variability and climate change through strategic research and technology demonstration in crops, livestock, and fisheries. The project focuses on selected commodities, such as wheat, rice, maize, pigeon pea, groundnut, tomato, mango, banana, cattle, buffalo, and small ruminants. Major research themes include assessing the vulnerability of major production zones; assessing the impacts of and developing varieties tolerant to climatic stresses (e.g. drought, heat, flooding) in grain and horticulture crops; evolving adaptation and mitigation strategies through enhanced water- and nutrient-use efficiency and conservation agriculture; studying changes in pest dynamics, pest- and pathogen-crop relationships, and emergence of new pests and pathogens under climate change. The emphasis on new varieties and new technologies translates into programmes such as Crop Science, Horticulture Science, and Plant Science. The MIDH also includes the “Promotion of Integrated Pest Management” programme. The Livestock Health and Disease Control Programme focuses on disease control in the livestock sector and was launched in 2021.

Ongoing agro-climatic research includes the development of drought- and heat-tolerant genotypes in chickpea, pigeon pea, and mung bean and the development of drought-tolerant onions and other horticultural crops. India’s research institutions have also developed flood- and drought-tolerant rice varieties and early-maturing wheat varieties for late-sowing areas to avoid terminal heat stress at the time of maturity. The National Agricultural Research System (NARS) is developing location-specific wheat varieties with traits addressing crop duration, varied soil conditions, and improved grain qualities while increasing grain yield levels through traditional breeding.

ICAR and various state agricultural universities (SAU) are targeting research to develop response mechanisms through early planting and short-duration varieties to mitigate potential climate-change risks. The NFSM includes components focused on capacity building, namely “Cropping-system-based training” and “Demonstrations on improved package for rice”, while the MIDH includes “Technology dissemination through demonstration” and “Good Agriculture Practices”. Several programmes focus on improving production practices, such as the “National Innovations in Climate Resilient Agriculture” (NICRA), “Drought and heat tolerant genotypes”, or “Agronomic management - Early planting”.

The GoI introduced new extension services for rice farmers in May 2022. These focus on disseminating agricultural production practices that help producers use less water and chemical fertilisers. In July 2022, the GoI also introduced extension and advisory services for farmers about mitigating extreme weather conditions and adverse impacts on agricultural production, using climate-resilient seed varieties, including rice and maize. This includes providing local weather information, including alerts and related agro-meteorological advisories using e-services launched by the Ministry of Earth Sciences. India first set up its National Monsoon Mission to improve weather forecasts for farmers in 2012.

India’s 2022 updated NDC focuses on adapting to climate change by enhancing investments in development programmes for sectors vulnerable to climate change, particularly agriculture, water resources, the Himalayan region, coastal regions, and health and disaster management.

Domestic policy developments in 2022-23

In June 2022, the GoI increased the minimum support price (MSP) for several summer planted (kharif) crops, including rice (5.2% increase) and maize (4.9%). In October 2022, the GoI raised the MSP for several winter planted (rabi) crops, including rapeseed (7.9%), wheat (5.5%) and lentils (9%).

In July 2022, India added maize and rice to the list of products subject to the 5% Goods and Services Tax. The two commodities were previously excluded from this list.

To address rising inflation, the Securities and Exchange Board of India (SEBI) extended in December 2022 by one year the suspension of futures trading of derivatives in several agricultural products, including wheat, rice, and soybeans. The measure was initially introduced in January 2021.

In November 2022, the Ministry of Consumer Affairs removed the oilseeds and oil stock limits previously imposed on wholesalers and traders. The measure had been introduced in 2021 to address rising prices for edible oils by controlling stock quantities and monitoring consumption.

In January 2023, the GoI announced the release of 3 million tonnes of wheat into the domestic market between January and March 2023, to help control rising wheat prices. The Food Corporation of India (FCI) offered wheat through e-auctions to local millers and bulk buyers at a maximum volume of 3 000 tonnes per buyer per action. In addition, wheat was offered to state governments for their food security programmes, and public sector organisations and co-operative federations at a concessional rate of INR 23 500 (USD 287) per tonne on the condition that the wheat be converted to flour and supplied to consumers at INR 29 500 (USD 360) per tonne.

In May 2022, the GoI introduced new support for the use of drones in agricultural activities, particularly for assessing the state of crops, spraying of fertilisers and pesticides, as well digitising land records. The support provides a maximum of INR 533 000 (USD 6 454) in subsidies to small farmers, as well as women in farming and farmers located in the north-eastern states, to buy drones. Other farmers would be eligible for financial assistance up to a maximum of INR 426 000 (USD 5 164).

In April 2022, the Agricultural and Processed Food Products Export Development Authority (APEDA) in India signed a Memorandum of Understanding with the National Research Development Corporation to implement the Agri-Export Policy and strengthen commodities’ export value chains by disseminating technologies to promote climate-resilient agriculture, zero carbon emission farming, and residue- and carbon-free food for exports. The key areas of co-operation include developing farm machinery for low-cost, user-friendly, and energy-efficient tools for small scale farmers, as well as promoting and supporting agricultural start-ups.

In May 2022, the GoI amended the 2018 National Biofuels Policy that incorporated various advancements in biofuels production and accelerated the E20 mandate to April 2025. The amendment i) allows more feedstocks for production of biofuels, ii) introduces a set of measures which facilitate the blending target of 20% ethanol in gasoline, iii) promotes the production of biofuels, and iv) grants permission for the export of biofuels in specific cases, such as exports of biofuels from special economic zones and export-oriented units for fuel purposes.

In December 2022, the GoI announced that under the NFSA it will continue to provide free food grains for approximately 813.5 million beneficiaries in 2023,6 but it did not extend beyond 2022 the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) programme, launched in April 2020 as a relief measure due to the COVID-19 pandemic. This follows a 60% reduction in the wheat allocation and a 50% increase in the rice allocation within the PMGKAY programme for May-September 2022.

The Union Budget 2023-24, released in February 2023, increases the budget allocation to agriculture by 4.7% compared to the previous financial year. It emphasises credit to agricultural producers, digitalisation, and improving production practices. Some specific elements are:

• Investing INR 25.2 billion (USD 300 million) for the digitalisation of 63 000 agricultural credit societies.

• Further developing Public-Private Partnerships (PPPs) for cotton producers, including collaboration between farmers and private sector for input supplies, extension services, and marketing promotion.

• Launching the Aatmanirbhar Clean Plant programme of INR 22 billion (USD 300 million) to boost availability of disease-free, quality planting material for high-value horticultural crops.

• Promoting the Indian Institute of Millets Research to a centre for excellence, to support the development of millet production.

• Setting up an agricultural accelerator fund to fund start-ups by entrepreneurs in rural areas.

• Setting up a National Cooperative database to extend coverage of co-operatives in villages where these currently do not exist.

• Encouraging 10 million farmers to adopt “natural farming”. Ten thousand bio-input resource centres will be set up, creating a national level micro-fertiliser and pesticide manufacturing network. Moreover, the PM-PRANAM scheme will be initiated to incentivise states to bring down the use of mineral fertilisers. The Gobardhan scheme will also promote 200 compressed natural gas plants using cow-dung and other agricultural and livestock waste.

Domestic policy responses to Russia’s war of aggression in Ukraine

In April 2022 and November 2022, the Department of Fertilizers of the Ministry of Agriculture and Farmers’ Welfare increased fertilisers subsidies for both the summer plants (kharif) and winter planted (rabi) crops in response to rising international fertiliser prices. This includes support for domestically produced fertilisers through freight subsidies to cover transport from producing states to other parts of the country.

In December 2022, India revised the 2015 gas procurement rules under which fertiliser companies were required to buy 80% of their gas through long-term contracts. Fertiliser plants are now able to source more gas through the domestic spot market (Indian Gas Exchange) or inter-company contracts.

Trade policy developments in 2022-23

In March 2022, the Ministry of Commerce and Industry (MoCI) extended the unrestricted import policy for pigeon peas and black gram lentils until 31 March 2023. These pulses can thus be imported without any quantitative restrictions but remain subject to existing import duties. Moreover, in July 2022, the MoCI issued a notification to increase imports of these pulses from Malawi, Mozambique, and Myanmar through 2026.

In May 2022, the MoCI introduced export restrictions for raw, refined, and white sugar. As of 1 June 2022, exports of these products require a special permit from the Ministry of Consumer Affairs, Food and Public Distribution/Department of Food and Public Distribution/Directorate of Sugar. The restriction is not applicable to sugar exports destined to the United States and the European Union falling under tariff rate quotas (TRQ). In October 2022, India extended the export restrictions for sugar until October 2023.

To address rising domestic prices of edible oils and food inflation, the MoCI introduced in May 2022 duty-free TRQs of 2 million tonnes for crude soybean oil and 2 million tonnes for crude sunflower oil until 2024. Also in May 2022, the MoCI reintroduced a TRQ of 0.55 million tonnes for soybean meal, including meal from genetically engineered (GE)-soybean varieties, to alleviate high livestock feed costs. India also removed the 5% Agriculture Infrastructure and Development Cess (AIDC)7 on these edible oils. However, in January 2023, the MOCI announced that the TRQ for crude soybean oil would only apply until the end of 2023.

In October 2022, the Department of Food and Public Distribution extended until 31 March 2023 the application of reduced tariff rates for crude palm oil; refined, bleached, and deodorised (RBD) palm olein; RBD palm oil; and crude soybean oil.

In April 2022, the MoCI eliminated the 5% tariff rate and the 5% AIDC on cotton not carded or combed. This applied between April and September 2022.

In October 2022, the MoCI authorised export-oriented units and firms set up in Special Economic Zones to export flour made from imported wheat with the objective to facilitate exports of value-added products. Food processors are thus allowed to import duty-free wheat against a commitment to export flour.

In January 2023, the Food Safety and Standards Authority of India (FSSAI) issued a notification that introduces a list of 79 designated ports-of-entry for certain imports of food products considered to be of high-risk. The products include milk and milk products; egg powder; meat and meat products, including poultry, fish and fish products; infant foods; health supplements; foods for dietary uses, probiotic and prebiotic foods; and foods for special medical purposes.

In January 2023, FSSAI introduced a notification setting new standards for basmati rice. The standards foresee that imported basmati rice should “possess natural fragrance characteristic of basmati rice and be free from artificial colouring and fragrance, and polishing agents.”

In April 2022, Australia and India signed an Economic Cooperation and Trade Agreement (ECTA) encompassing various market access policy dimensions for goods and services. India will benefit from preferential access to Australia's market for all its exports, including agri-food products. Around 96.4% of India’s exports by value will enter Australia duty-free. Around 85% of Australia’s goods exports will benefit from duty-free treatment in India and an additional 5% will see tariffs eliminated over a 10-year period. However, products deemed sensitive by India, such as wheat, rice, sunflower seed oil, oil cake and maize, remain excluded from any tariff concessions.

Trade policy responses to Russia’s war of aggression in Ukraine

On 13 May 2022, the MoCI prohibited indefinitely exports of all types of wheat. The MoCI’s notification of the export ban referenced the steep increase in global wheat prices and consequent risk to the food security of India, neighbouring and other vulnerable countries. The notification also specified exemptions to the ban for pending export shipments with an irrevocable letter of credit issued on or before the date of notification. Exports were also allowed, with the GoI’s permission, to other countries to meet their food security needs and based on requests from these governments. The MoCI issued on 14 May 2022 a trade notice regarding the implementation of the export ban notification saying that exports of wheat on humanitarian grounds as assistance between governments would be allowed on a case-by-case basis. Subsequently, on 17 May 2022 the MoCI issued another trade notice allowing exports of wheat consignments that had been handed over to customs for examination or registered into their systems on or before 13 May 2022, whether or not they were tied to a specific letter of credit or other financial instrument.

On 6 July 2022, India introduced export licensing requirements on wheat flour effective 12 July 2022. The measure aimed to stabilise fluctuations in domestic prices and control the quality of exports as carried out by the Export Inspection Council. Wheat flour had been excluded from the wheat export ban implemented in May.

On 9 September 2022, India imposed a 20% export duty on non-basmati rice (except for parboiled rice) to boost domestic supplies amid a fall in area planted with paddy in the kharif (summer planted) season, also within an open-ended timeframe. Furthermore, exports of broken rice have been banned to ensure adequate availability for the domestic poultry industry, other animal feedstock, as well as ethanol production. Due to loading in progress, exceptions to the rice export ban were allowed until 15 October 2022. In November 2022, the MoCI lifted however the ban on exports of organic non-basmati rice including broken rice.

In August 2022, the Plant Quarantine Division of the MAFW published the Plant Quarantine Order. The amended order grants expanded market access for cherries from the northwest United States.

Contextual information

India is the seventh largest country in the world by land area and became the most populous country worldwide in 2023. While the share of urban population continued to increase over the past decade, about two-thirds of the population still lives in rural areas. At just 0.15 hectare per capita, agricultural land is very scarce.

Agriculture continues to be an important part of India’s economy. The sector accounts for 16.8% of GDP, but the estimated 44% share of employment indicates that labour productivity remains significantly lower than in the rest of the economy (Table 14.3). The productivity gap is also reflected in the evolution of farm incomes, which have increased by less than one-third that of non-agricultural incomes in recent years. Agriculture’s weight in the economy has gradually declined, mostly in favour of services, which have led economic growth over the last two decades and played a more important role in India’s economic development than in most other major emerging economies.

Indian agriculture is continuing to diversify towards livestock and away from grain crops. While grains and milk remain dominant, there has been a gradual change in the composition of production to other crops – such as sugar cane, cotton, fruit and vegetables – as well as certain meat sub-sectors. The livestock sector has seen faster and less volatile growth than the crop sector. The agricultural sector continues to be dominated by a large number of small-scale farmers, as the national average farm size has been in steady decline.

Table 14.3. India: Contextual indicators

	India		International comparison
	2000*	2021*	2000*	2021*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	2 212	10 194	5.5%	8.3%
Population (million)	1 060	1 408	24.7%	26.8%
Land area (thousand km2)	2 973	2 973	3.6%	3.6%
Agricultural area (AA) (thousand ha)	180 975	179 045	6.0%	6.1%
			All countries1
Population density (inhabitants/km2)	356	473	52	64
GDP per capita (USD in PPPs)	2 087	7 242	9 350	23 401
Trade as % of GDP	10.2	15.1	12.3	15.6
Agriculture in the economy			All countries1
Agriculture in GDP (%)	21.6	16.8	2.9	3.9
Agriculture share in employment (%)	59.6	44.0	-	-
Agro-food exports (% of total exports)	10.9	10.9	6.2	7.9
Agro-food imports (% of total imports)	5.6	5.5	5.5	7.2
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	73	63	-	-
Livestock in total agricultural production (%)	27	37	-	-
Share of arable land in AA (%)	89	87	32	34

Notes: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; UN Comtrade; World Bank, WDI and national data.

Real GDP growth has been fluctuating between 4% and 8% over the last two decades, highlighting remaining structural bottlenecks in areas such as labour markets or the business environment. The COVID-19 pandemic and related restrictions led to a 7% drop in GDP, but growth rebounded to an average of 7.3% in 2021-22, placing India again among the fastest growing G20 economies. Growth moderated, however, in 2022 against a backdrop of Russia’s war of aggression against Ukraine, supply chain disruptions, and rising energy and food prices. Unemployment has increased since the COVID-19 pandemic, but the relatively low unemployment figure (averaging about 6.7% in 2019-21) hides significant informal employment. Against a background of higher international prices and rising domestic wholesale prices for selected food items, inflation reached 6% in 2022 (Figure 14.4).

Figure 14.4. India: Main economic indicators, 2000 to 2022

Sources: OECD statistical databases; World Bank, WDI; and ILO estimates and projections.

India is a consistent net agro-food exporter and the importance of agro-food products in total trade has been increasing over the past two decades, with a share of 11% in 2021. However, agro-food imports have until recently been growing faster than exports. Products for direct consumption – of low value, raw or semi-processed, and marketed in bulk – dominate agro-food exports, representing 58% of the total in 2021. Processed products for further processing by domestic industry are the main import category, accounting for 68% of total agro-food imports (Figure 14.5).

Figure 14.5. India: Agro-food trade

 

Notes: Numbers may not add up to 100 due to rounding.

Source: UN Comtrade Database.

Agricultural output growth in India averaged 3% in 2011-20, well above the world average (Figure 14.6). This has been driven mainly by a significant increase in total factor productivity (TFP) which grew at 2.7% per year, backed by technological progress in the form of improved seeds and better infrastructure (including irrigation coverage, road density, and electricity supply).

However, the sustained growth in agricultural output and fertiliser use have put mounting pressures on natural resources, particularly land and water. This is reflected in the nutrient surplus intensities at the national level, which have grown over time and are much higher than the average for OECD countries (Table 14.4). About 80% of total water abstractions are by the agricultural sector. The share of agriculture in total GHG emissions is also higher than the OECD average, partly due to the weight of the agricultural sector in the Indian economy. Livestock rearing is the main source of GHGs.

Figure 14.6. India: Composition of agricultural output growth, 2011-20

Note: Primary factors comprise labour, land and capital (livestock and machinery). Intermediate input comprises materials (feed and fertiliser).

Source: USDA Economic Research Service Agricultural Productivity database.

Table 14.4. India: Productivity and environmental indicators

	India		International comparison
	1993-2002	2011-2020	1993-2002	2011-2020
			World
TFP annual growth rate (%)	0.7%	2.7%	1.7%	1.1%
			OECD average
Environmental indicators	2000*	2021*	2000*	2021*
Nitrogen balance, kg/ha	91.0	135.0	32.2	30.4
Phosphorus balance, kg/ha	20.7	29.5	3.3	3.0
Agriculture share of total energy use (%)	5.3	4.8	1.7	2.0
Agriculture share of GHG emissions (%)	23.3	14.4	8.6	10.5
Share of irrigated land in AA (%)	33.4	39.3	-	-
Share of agriculture in water abstractions (%)	..	80.0	46.6	49.7
Water stress indicator	..	..	8.3	7.4

Notes: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

References

[4] Government of India (2021), National Agriculture Market (e-NAM): One Nation One Market for Agricultural produce, https://static.pib.gov.in/WriteReadData/specificdocs/documents/2021/nov/doc2021112561.pdf.

[3] Gulati, A., D. Kapur and M. Bouton (2020), “Reforming Indian Agriculture”, Economic & Political Weekly, Vol. 55/11, https://www.epw.in/journal/2020/11/special-articles/reforming-indian-agriculture.html (accessed on 15 March 2020).

[2] ICRIER (2022), Background Analysis for India chapter in Agricultural Policy Monitoring and Evaluation Reports.

[6] Ministry of Earth Sciences (2020), Assessment of Climate Change over the Indian Region, http://www.indiaenvironmentportal.org.in/files/file/Assessment-of-Climate-Change-over-the-Indian-Region.pdf.

[1] OECD/ICRIER (2018), Agricultural Policies in India, OECD Food and Agricultural Reviews, OECD Publishing, Paris, https://doi.org/10.1787/9789264302334-en.

[5] Reserve Bank of India (2019), Report of the Internal Working Group to Review Agricultural Credit, https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=942 (accessed on 10 January 2020).

Notes

← 1.  The Targeted Public Distribution System (TPDS) plays the same role as the Public Distribution System (PDS) before the TPDS but with a special focus on the poor.

← 2.  In the seven states or UTs that do not have an APMC act, procurement can take place outside mandis.

← 3.  Agriculture marketing also covers the futures market governed by the Securities and Exchange Board of India (SEBI), with the largest value of agricultural commodity trade taking place through the National Commodity Derivative Exchange (NCDEX). In addition, the Negotiable Warehouse Receipt System (NWRS) – established under the Warehousing Development and Regulatory Authority (WDRA) – aims to support farmers by storing products in warehouses. However, farmers, especially small and marginal, do not directly trade in agri-futures market in India.

← 4.  This represents the price below which exporters are not allowed to export a specific commodity. A minimum export price is set taking into consideration concerns about domestic prices and supply of that specific commodity.

← 5.  A Ministerial Decision on Export Competition at the WTO Ministerial Conference held in Nairobi in 2015 put an end to the subsidisation of agricultural exports, which for India would occur at the end of 2023 (https://www.wto.org/english/thewto_e/minist_e/mc10_e/l980_e.htm).

← 6.  Under the NFSA, around two-thirds of the Indian population were beneficiaries, entitled to 5 kg food grains per person every month for those people under the priority households (PHH) and 35 kg per household under Antyodaya Ann Yojana (poorest of the poor). Prior to the announcement, food grains were supplied at subsidised prices of INR 3 per kg for rice, INR 2 per kg for wheat, and INR 1 per kg for coarse grains. Under the PMGKY scheme, the GoI provided an additional 5 kg of food grain free of cost to about 800 million beneficiaries for the period April 2020 to December 2022.

← 7.  The AIDC is a tax that the GoI levies on commercial agricultural production in the country.