Five key reasons set to give bumper agri growth in FY21; Indian economy may not shrink this year 

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Updated: Apr 29, 2020 6:20 PM

The Agri sector is mostly unaffected from the lockdown and is expected to grow by 3 per cent this year.

agri economy, agri growth, agriculture sector, farm sector, farm growth, fertiliserIt is estimated that the Agri sector alone will give over 0.5 per cent growth to the overall economy.

Even as most of the economic activities are at standstill amid the nationwide lockdown, the agriculture sector is at the rescue of the Indian economy. The Agri sector is mostly unaffected from the lockdown and is expected to grow by 3 per cent this year. It is estimated that the sector alone will give over 0.5 per cent growth to the overall economy, said NITI Aayog member and agricultural policy expert Ramesh Chand in a press conference today. He also highlighted five key reasons why the Agri sector will show a bumper growth this year.  

Strong assurance from better than expected monsoon, 40-60 per cent higher water availability in the reservoirs, and 5 per cent higher offtake of fertiliser during the first four months of this year are the major signs indicating a bumper production this year. On top of that, 20 per cent increase in the sale of seeds and high food prices, showing better terms of trade and more encouragement to the farmers to produce are also expected to give cues to an affluent crop season. 

Also Read: Your food platter gets expensive amid lockdown, steep price rise in two common items

On the other side, the government’s aim to double farmers’ income by 2022 still stands true, Agriculture Minister Narendra Singh Tomar said in the same press conference. He also said that Prime Minister Narendra Modi has allowed opening all kinds of rural and agriculture activities that will boost the rural economy. Thus, the states and various ministries should work together to take full advantage of the relaxation in lockdown and to provide a cushion to the sagging economy. Meanwhile, the Agri minister refused to talk about any relief package for the agriculture sector, calling provisions like Fasal Bima Yojana greater than any relief package.

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