Chapter 13 · Economics

Indian Agriculture

Crops · Landholdings · Revolutions · MSP/CACP/FCI · Horticulture · Schemes — SSC / Railway / UPSC / BPSC

Agriculture — Introduction
  • Agriculture is a subject of the State List
  • Backbone of the Indian economy
  • Falls under the primary sector of the economy
  • Agriculture-allied activities: animal husbandry, fisheries and forestry; mining belongs to the broader primary sector

Organic and natural farming both reduce synthetic-input dependence but are distinct approaches: certified organic practices versus locally available biological inputs/minimal external inputs. Sikkim is India's first fully organic state.

4.6%Agri Growth Rate (2024–25)
2.7%Agri Growth Rate (2023–24)
Contribution / Importance of Agricultural Sector
Workforce Engaged (Census 2011)54.6%
Workforce Employed (Economic Survey 2025–26)46.1%
Contribution to GDP (1950–51)55.4%
Agriculture/allied GDP share FY 2023–24 (Economic Survey 2024–25)16%
⚠ EXAM TRAP
Agriculture/allied share was about 55.4% around 1950–51 and about 16% of GDP in FY 2023–24 (Economic Survey 2024–25). Workforce share was 54.6% in Census 2011 and 46.1% in Economic Survey 2025–26; distinguish year and denominator.
Major Crops (Seasonal Classification)
Rabi (Winter)Kharif (Monsoon)Zaid (Summer)
Wheat, Chickpea, Barley, Mustard, PeaPaddy, Jowar (Sorghum), Bajra, Maize, Cotton, Sesame, Soybean, Pigeon Pea (Arhar), Groundnut, Moong, UradWatermelon, Cucumber, Muskmelon

Commercial Crops: Groundnut, Mustard, Sesame, Sugarcane, Jute, Mesta, Tea, Coffee. Cash Crops: Jute, Sugarcane, Cotton, Tobacco. GM Crop: Bt Cotton, the only GM crop commercially approved for cultivation in India.

⚠ EXAM TRAP
Commercial and cash-crop categories overlap. Examples of cash crops include jute, sugarcane, cotton and tobacco; commercial crops also include oilseeds, tea and coffee.
Size of Agricultural Holdings
TypeSize
Marginal holdingsLess than 1 hectare
Small holdings1–2 hectares
Semi-medium holdings2–4 hectares
Medium holdings4–10 hectares
Large holdingsMore than 10 hectares

Marginal holdings are most numerous; much traditional smallholder farming is subsistence/semi-subsistence and increasingly linked with markets.

Irrigation
Gross Cropped Area Irrigated59.9% (2023–24)
States with Most Irrigated AreaUttar Pradesh, Madhya Pradesh and Rajasthan (gross irrigated area, 2023–24)
Highest Irrigated Share of Gross Cropped Area (2023–24)Punjab, about 93.5%
Mizoram: Irrigated Share of Gross Cropped Area (2023–24)About 10.0%
Largest Gross Un-irrigated Area (2023–24)Rajasthan

Major Irrigation Sources

SourceShare
Tube Wells48% of net irrigated area (2023–24)
Canals21% of net irrigated area (2023–24)
Other Wells15% of net irrigated area (2023–24)

State with most irrigation by ponds: Tamil Nadu.

Agriculture including Livestock — Five-Year Plan Growth (NITI working-group table)
PlanActual Growth (%)
Second Plan3.59%
Fifth Plan3.97%
Seventh Plan3.06%
Eighth Plan4.88%
Eleventh Plan4.27%
Twelfth Plan (target, not actual)4.0%
⚡ QUICK RECALL
In the cited Agriculture-including-Livestock table, the Eighth Plan recorded 4.88%. The Twelfth Plan's 4.0% is a target, not an achieved rate; do not mix targets with actuals.
Land Reforms in India
  • Tenancy Reforms
  • Abolition of Intermediaries
  • Land Ceiling (limit on land holding)
  • Abolition of Zamindari System — Uttar Pradesh
  • System of cooperative farming
Land Reform Successful StatesKerala, West Bengal
Agricultural Credit
Institutional Sources69.6% of outstanding agricultural-household loans (Situation Assessment Survey 2019); government, cooperatives and commercial banks are institutional sources
Non-Institutional SourcesMoney Lenders, Mahajans, Landlords, Relatives

Types of Agricultural Credit

TypeDuration
Short-termLess than 15 months
Medium-term15 months to 5 years
Long-termMore than 5 years; actual tenors depend on purpose/lender

Land Development Bank: Provides long-term credit to the agricultural sector. Commercialisation of Agriculture: shift toward production for market sale rather than self-consumption, increasing market orientation and marketed surplus.

Green Revolution (mid-1960s; HYV Programme 1966–67)
Father (World)Norman Borlaug (Mexico)
Father (India)Dr. M.S. Swaminathan
BirthplacePantnagar (Uttarakhand)
Affected AreasPunjab, Haryana, Western Uttar Pradesh
  • Development of new, high-yielding varieties of seeds (HYV)
  • Key factors: HYV seeds, irrigation, chemical fertilisers
  • Maximum impact on wheat production; paddy to some extent
White Revolution & Second Phase of Green Revolution
White Revolution (Operation Flood)1970, started by Dr. Verghese Kurien — increase in milk production
Second Phase of Green RevolutionMid-1970s–80s — expanded HYV seeds/fertilisers/irrigation to more crops and regions
Rainbow Revolution & Colour-coded Revolutions

Rainbow Revolution: A holistic mix of all revolutions.

RevolutionSector / Product
WhiteMilk Production
YellowOilseed Production
RoundPotato
BlueFish
RedMeat / Tomato
PinkPrawn / Onion
BlackPetroleum
GreyFertiliser
SilverEgg
GoldenHorticulture
SaffronSolar Energy
⚠ EXAM TRAP
Silver Revolution = egg production in the conventional list. Rainbow Revolution broadly means integrated development across crops and allied sectors.
NABARD
Established1982
HeadquartersMumbai
Recommended ByCRAFICARD, chaired by B. Sivaraman
Kisan Credit Card Scheme1998 (model KCC scheme circulated August 1998)

Apex institution for providing finance for agriculture and rural development.

CACP & MSP
CACP Established1965, as Agricultural Prices Commission (APC)
Renamed1985 → Commission for Agricultural Costs and Prices
HeadquartersNew Delhi

Advises the government on fixing agricultural product prices; mandated to recommend MSPs.

Minimum Support Price (MSP)

Started1966–67

Announced by government on CACP's recommendation, for 22 mandated crops + FRP for sugarcane (14 Kharif, 6 Rabi, 2 other commercial crops):

  • 7 Cereals: Paddy, Wheat, Barley, Jowar, Bajra, Maize, Ragi
  • 3 Commercial Crops under MSP: Cotton, Raw Jute and Copra; sugarcane is separate under FRP
  • 5 Pulses: Gram, Arhar/Tur, Moong, Urad, Lentil
  • 7 Oil Seeds: Groundnut, Rapeseed/Mustard, Soybean, Sunflower, Sesamum, Nigerseed, Safflower

FRP (Fair and Remunerative Price) is specific to sugarcane pricing.

⚠ EXAM TRAP
Sugarcane price is fixed via FRP (Fair and Remunerative Price), NOT MSP — a commonly confused exception among the 22+ mandated crops.
FCI, TPDS & National Food Security Act
FCI Established1965 — Purchase, Storage, Transportation, Distribution, Sale of food grains
TPDS Established1997 — affordable grains to people
National Commission on FarmersFormed 2004; Chairman: M.S. Swaminathan; Report 2006

National Food Security Act, 2013

  • Came into force: 5 July 2013
  • Implemented in all 36 States/UTs by November 2016
  • Rural: 75% population; Urban: 50% population — food grains at subsidised rates

CAPART: Formed in 1986 by merging PADI (People's Action for Development India) and CART (Council for Advancement of Rural Technology) — supports voluntary action and technological innovation in rural development.

Horticulture Sector

Includes flowers, vegetables, root crops, fruits, spices, medicinal plants.

India's Fruit Production (2024–25)About 114.51 million tonnes
World Rank in Fruit Production2nd
Major Fruit-Producing States (2024–25)Andhra Pradesh, Maharashtra, Uttar Pradesh, Gujarat, Karnataka and Tamil Nadu
Spices ProductionIndia is the largest producer
National Horticulture MissionStarted 2005–06
National Horticulture BoardEstablished 1984; HQ: Gurugram, Haryana

India is known as the "Land of Spices"; Kerala is the "Spice Garden of India."

Dairy Sector
  • India is the world's largest milk producer; livestock counts and milk output are different measures
  • India ranks 1st in milk production in the world
  • Largest milk producing state: Uttar Pradesh
Fisheries
World RankSecond-largest producer

Top Fish-Producing States

  • 1. Andhra Pradesh
  • 2. West Bengal
  • 3. Uttar Pradesh (2024–25)

National Fisheries Development Board: Established 2006, HQ Hyderabad.

⚡ QUICK RECALL
International Year of Millets was declared for 2023 by the United Nations — India led this global initiative given its status as a major millet producer.

Maharashtra is India's leading producer of dry onion and a major onion-producing state.

Agricultural Trade
Agri-food Share in Total Exports (FY 2024–25)About 11.2% (FY 2024–25, agri-food incl. processed food)
Agriculture Export Policy 2018: Global Share ObjectiveDouble India's share through global-value-chain integration

Top items under Agri Exports: Cereals, Spices, Marine Products.

ProductExport Areas
Basmati Rice (recognised GI region)Punjab, Haryana, Himachal Pradesh, Uttarakhand, Delhi, specified Western UP districts and Jammu & Kashmir
SpicesKerala
MangoUttar Pradesh, Maharashtra
VegetablesUttar Pradesh, West Bengal
OnionMaharashtra

Agricultural Export Policy — 2018

  • Aims to double agricultural exports, diversify destinations, promote high-value exports
  • Historical policy targets: US$60+ billion by 2022 and US$100 billion in the next few years thereafter
  • Promotes indigenous, innovative, organic, local, traditional and non-traditional agri exports
Related Bodies
APEDAEstablished 1986 — top agency for agricultural export areas
NAFEDEstablished 1958 — National Agriculture Cooperative Marketing Federation of India
TRIFEDEstablished 1987, functioning 1988 — Tribal Cooperative Marketing Development Federation of India
Price Stabilisation FundFor onion, potato, pulses
ATMAEstablished 2005 — provides new technologies and information to farmers

National Policy for Farmers (2007)

National Policy for Farmers, 2007, based on recommendations of the National Commission on Farmers; distinct from the National Agriculture Policy, 2000.

FSSAIAct 2006; Established 2008 — science-based food safety standards
Major Schemes Related to Agriculture
SchemeStartedObjective
National Food Security Mission (NFSM)2007Increase rice, wheat, pulses production by 10, 8, 2 MT respectively
Rashtriya Krishi Vikas Yojana2007–08Encourage states for comprehensive agricultural/allied sector development
National Mission on Food Processing (historical)2012Increase farmers' income; store food items longer
National Mission for Sustainable Agriculture (NMSA)2014Sustainable agricultural development
National Programme for Dairy DevelopmentFebruary 2014Strengthen organised milk procurement, quality testing/chilling, processing, value addition and marketing infrastructure
Soil Health Card SchemeFebruary 2015Provide soil health cards to farmers
Pradhan Mantri Krishi Sinchai Yojana1st July 2015Enhance irrigation access ("more crop per drop"); expand cultivable land
Pradhan Mantri Fasal Bima YojanaIntroduced 2016; implemented from Kharif 2016Compensation for crop loss due to natural calamities
e-NAM Scheme2016Provide fair price for farmers' produce
Pradhan Mantri Kisan Sampada YojanaApproved May 2017; renamed Kisan SAMPADA on 31 May 2017Reduce food wastage, increase farmers' income
Pradhan Mantri Kisan Samman Nidhi2019Income support of ₹6000 annually in 3 instalments
Pradhan Mantri Kisan Maan-Dhan Yojana12 September 2019₹3000/month pension after 60 years for small/marginal farmers (aged 18–40)
Pradhan Mantri Matsya Sampada Yojana10 September 2020Sustainable fisheries: productivity, value chains, quality, income, employment and fisher welfare
⚠ EXAM TRAP
Pradhan Mantri Kisan Samman Nidhi (₹6000/year income support) and Pradhan Mantri Kisan Maan-Dhan Yojana (₹3000/month PENSION) are both "PM Kisan" schemes but serve very different purposes — frequently confused.
Quick Summary / Reference Table
TopicKey Fact
Agriculture — ListSubject of State list | Backbone of Indian economy | Primary sector
SikkimIndia's first fully organic state
Agriculture GDP share~55.4% around 1950–51; ~16% agriculture/allied GDP share FY 2023–24 (Economic Survey 2024–25)
Population in AgricultureWorkforce: 54.6% (Census 2011); 46.1% (Economic Survey 2025–26)
India's Farming TypeTraditional smallholders: subsistence/semi-subsistence, increasingly market-linked
GM Crop in IndiaBt Cotton (only GM crop commercially approved for cultivation)
Marginal HoldingsLess than 1 hectare | India has highest number
Gross Irrigated Area59.9% (2023–24) of gross cropped area
Most Irrigated State (%)Punjab
Mizoram Irrigated Share (2023–24)~10.0% of gross cropped area
Largest Gross Un-irrigated Area (2023–24)Rajasthan
Major Irrigation SourceNet irrigated area, 2023–24: Tube-wells 48%; canals 21%; other wells 15%
Most Irrigation by PondsTamil Nadu
Land Reform Successful StatesKerala and West Bengal
Abolition of ZamindariUttar Pradesh
Green Revolution — StartedMid-1960s; HYV Programme 1966–67
Father of Green Revolution (World)Norman Borlaug (Mexico)
Father of Green Revolution (India)Dr. M.S. Swaminathan
Green Revolution — Birth PlacePantnagar (Uttarakhand)
White Revolution (Operation Flood)1970 | Dr. Verghese Kurien
NABARD1982 | HQ: Mumbai | CRAFICARD, chaired by B. Sivaraman | Kisan Credit Card: 1998 (model KCC scheme circulated August 1998)
CACPEstablished 1965 as APC | Renamed 1985 | HQ: New Delhi
MSP — Started1966–67 | 22 mandated crops
FCIEstablished 1965 | Purchase, Storage, Transport, Distribution, Sale of food grains
TPDSEstablished 1997 | Affordable grains to people
National Food Security ActEffective 5 July 2013; up to 75% rural and 50% urban population; all 36 States/UTs by November 2016
National Commission on FarmersFormed 2004 | Chairman: M.S. Swaminathan | Report 2006
National Horticulture BoardEstablished 1984 | HQ: Gurugram (Haryana)
National Horticulture MissionStarted 2005–06
India — DairyWorld's largest milk producer; Uttar Pradesh largest milk-producing state in 2024–25
India — FisheriesSecond-largest producer | Top state: Andhra Pradesh
International Year of Millets2023 (declared by UN)
Leading Dry-Onion ProducerMaharashtra
APEDAEstablished 1986 | Top agency for agri export areas
NAFEDEstablished 1958 | National Agri Cooperative Marketing Federation of India
TRIFEDEstablished 1987 | Functioning 1988 | Tribal Cooperative Marketing
Agricultural Export Policy2018 historical targets: US$60+ billion by 2022, US$100 billion in following years
ATMAEstablished 2005 | New technologies for farmers
National Policy for Farmers (2007)National Policy for Farmers (2007), based on National Commission on Farmers recommendations
FSSAIAct 2006 | Established 2008 | Science-based food standards
India — SpicesLargest producer | Kerala → Spice Garden of India
Agriculture share in exportsAbout 11.2% (FY 2024–25, agri-food incl. processed food)
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