The Gross Value Added (GVA) in 'Agriculture & Allied' sector declined from 6.3 percent in 2016-17 to 2.9 percent in 2018-19. The crops, livestock and forestry sector showed fluctuating growth rates over the period from 2014-15 to 2017-18 while the fisheries sector has shown a rapid growth from 4.9 per cent in 2012-13 to 11.9 per cent in 2017-18.
Taking note of slow growth rate in agriculture and allied sector, the Economic Survey 2018-19 that tabled in the Parliament on Thursday, called for framing new policies to improve water use efficiency in the agriculture sector. "The GVA in agriculture improved from a negative 0.2 per cent in 2014-15 to 6.3 per cent in 2016-17 only to decelerate to 2.9 per cent in 2018-19. However, the volatility of output growth as measured by the coefficient of variation has declined from 2.7 in the period of 1961-1988 to 1.6 during 1989-2004 and further to 0.8 during 2005 to 2018 ," it said.
Stating that farmer sector growth witnessed tapering in 2018-19, the survey said the share of farm sector in total GVA has been consistently falling and now stands at 16.1 per cent in the last fiscal. "The agriculture sector had investment rate much less than half of that of services and industry sectors," the survey added.
The Economic Survey said that the Ministry of Agriculture has projected 283.4 million tonnes of foodgrains in 2017-18. "There was a significant decline in food prices in 2018-19 as indicated by nearly zero per cent consumer food price inflation in 2018-19 with price contraction straight for five months in the year," the survey added.
The number of operational land holdings and area under operation have shifted towards small and marginal farmers. Expressing concern that India will be in the global hot spot for 'water insecurity' by 2050, it said the focus in agriculture should shift from 'land productivity' to 'irrigation water productivity'. "Therefore, devising policies to incentivise farmers to adopt efficient ways of water use should become a national priority to avert the looming water crisis," the survey added. The India Meteorological Department (IMD) has predicted near normal southwest monsoon this year. However, there was 33 per cent deficient in rainfall during June that led to less coverage of kharif crops.
Noting that the country's agriculture is highly dependent on water, the Economic Survey said there is a major concern whether the present practice of groundwater use can be sustained as the depth of the groundwater level continues to drop.