The story of agriculture, which is the backbone of the country in terms of livelihoods, has not been good in the past two years. Agriculture GDP (gross domestic product) grew at (-)0.2% in 2014-15 and 1.1% in 2015-16. The distress in agriculture is due to two factors—first, the crash in global commodity prices and, second, deficit rainfall for two years in a row; 10 states have declared drought this year. These two factors have affected farmers’ incomes. Low agriculture growth also affects the prospects of manufacturing and services due to forward and backward linkages. For example, tractor sales have declined. In this context, a big push for the agriculture sector is needed in the forthcoming budget. A two-pronged strategy is required for agriculture: raising productivity and incomes of farmers and coping with risks due to climate change and the crash in commodity prices. The following measures are needed in the budget to revive the sector. First, increase in productivity can be ...
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