Indian agriculture enters new phase as diets, incomes and climate reshape farming: Report

The report illustrates a fundamental shift in agricultural economics, moving from a focus on food security (caloric sufficiency) to nutritional security and value addition. The initial phase (1967-1995), dominated by the Green Revolution, prioritized high-yielding varieties of rice and wheat to combat scarcity. However, rising incomes and urbanisation (1996-2014) led to a change in dietary preferences, decreasing the share of household expenditure on cereals and increasing demand for high-value foods like fruits, dairy, and poultry. This structural change is reflected in the accelerated agricultural Gross Value Added (GVA) growth post-2015, driven largely by horticulture, dairy, and fisheries, rather than just foodgrains. For UPSC Mains, this highlights the necessity for agricultural policies to pivot towards crop diversification, emphasizing that farmer income is increasingly dependent on efficient integration into value chains—connecting production to markets, cold chains, and food processing—rather than just increasing yields.

The transition highlighted in the report underscores the environmental costs of the Green Revolution, including groundwater depletion, declining soil fertility, and biodiversity loss due to the intensive cultivation of water-guzzling crops like rice and wheat. The future of Indian agriculture must prioritize resource-use efficiency and climate resilience. The significant increase in the release of climate-resilient crop varieties (2,996 out of 3,236 released between 2014-2025) reflects a necessary adaptation strategy to mitigate risks from drought, pests, and climate variability. This aligns with the broader goal of sustainable agriculture, shifting the focus from maximizing output to optimizing input use (water, land, fertilizers) while minimizing environmental degradation. Candidates should link this to broader environmental policies like the National Mission for Sustainable Agriculture (NMSA) and the urgent need for practices like precision farming.

The evolving agrifood system demands a corresponding shift in agricultural policy and governance. Historically, policies like the Minimum Support Price (MSP) and procurement systems heavily favored rice and wheat, discouraging diversification. The report emphasizes the need for policies that support market development, infrastructure investment (like storage and cold chains), and digital integration. Initiatives like the AgriStack (a digital foundation for agriculture) demonstrate how governance is incorporating technology for better farmer services and data-driven policymaking. The expansion of institutions like dairy cooperatives (from 13,284 in 1981 to 235,877 in 2024) and the substantial increase in institutional credit underscore the importance of robust institutional frameworks in supporting farmers. This requires an integrated policy approach, coordinating efforts across water management, energy, rural development, and trade, rather than treating agriculture in a silo.