New Delhi: The Indian Economic Survey 2023-24 released on Monday has highlighted five policy recommendations for the agricultural sector.
The first step is not banning futures or options at price spikes, as this can avoid bureaucratic interference in the futures market for agricultural commodities. Export bans should only be invoked under exceptional circumstances, allowing domestic consumers to substitute for agricultural commodities not essential consumption items like foodgrains.
The third step is re-examining the inflation-targeting framework, considering targeting inflation, excluding food, to address supply-induced higher food prices. Direct benefit transfers or coupons for specified purchases valid for appropriate durations can help handle hardships caused by higher food prices for poor and low-income consumers.
The fourth recommendation is increasing the Total Net irrigation area, as India's irrigation efficiency is only 30-40 percent for surface water and 50-60% for groundwater. Better water utilization farming practices and technologies like drip and fertigation are needed.
Finally, the survey suggests making farming consistent with climate considerations, as grains such as rice and sugarcane are water-guzzling crops and cultivation of paddy contributes to methane emissions. The time has come to promote crop-neutral incentive structures.
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