India's gross domestic product that had grown by 5.2% and 4.4% in
the first two quarters of 2019-20, contracted by 23.9% and 7.5% in the first
and second quarters, respectively, of 2020-21
Even as the
pandemic-led crisis shrank India's overall economy, its agriculture sector,
supported by a normal monsoon, robust kharif sowing and adequate water storage
in reservoirs, remained a "bright spot", as per the Reserve
Bank of India.
India's gross
domestic product that had grown by 5.2% and 4.4% in the first two quarters of
2019-20, contracted by 23.9% and 7.5% in the first and second quarters,
respectively, of 2020-21, per government data. However, agriculture appeared to
have escaped the impact of the slump caused by the pandemic--it grew at 3.4% in
both quarters, close to the 2019-20 rates.
"It is true
that agricultural activities are less affected, in part because it is a
fallback option for those who have lost jobs in cities or those who do wage
work," said Sudha Narayanan, agriculture economist and associate professor
at the Indira Gandhi Institute of Development Research. Also, when other
earnings fall precipitously, the logical response from landowners is to raise
their own food, she added.
However, as we
explain later, the growth did not result in higher farm incomes due to the rise
in input costs caused by the lockdown. The agriculture
sector also saw some other upheavals this year. The passage of the three
farm laws during the 2020 monsoon session of parliament has led to widespread
unrest over the last three weeks. The farmers are adamant that the bills be
rolled back because they fear that increased privatisation of the sector will
leave them vulnerable to exploitation.
Further, as we
step into 2021, the government will have just one year to meet its promise of
doubling farmers' incomes by 2022. Experts say this was an unrealistic target
to begin with and is now looking increasingly so.
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