Module 61. Agriculture and Allied Sectors
Agriculture and allied sectors form the backbone of many economies, especially in developing nations such as India, where they play a vital role in providing employment, ensuring food security, and contributing significantly to the Gross Domestic Product (GDP). These sectors encompass a wide range of activities beyond traditional crop farming, including animal husbandry, fisheries, forestry, and horticulture. Together, they sustain rural livelihoods and form the foundation for agrarian development.
Background and Significance
Agriculture has historically been the primary source of livelihood for the majority of the population in agrarian countries. It not only provides essential food grains and raw materials for industries but also influences the overall economic stability and growth. Allied sectors such as livestock, fisheries, and forestry complement agriculture by diversifying income sources and enhancing rural resilience.
In India, for example, agriculture and allied sectors account for nearly 18–20% of the GDP and employ more than half of the labour force. The sector’s performance has a direct bearing on rural income levels, inflation trends, and national food supply. Government initiatives such as the National Food Security Mission, Pradhan Mantri Krishi Sinchai Yojana, and National Horticulture Mission have been pivotal in promoting productivity and sustainability.
Components of Agriculture and Allied Sectors
The agriculture and allied sectors can be broadly classified into the following key components:
- Crop Production – The cultivation of food grains, pulses, oilseeds, and cash crops such as cotton, sugarcane, and jute forms the core of agricultural activities. Technological innovations such as improved seed varieties, mechanisation, and efficient irrigation systems have significantly enhanced yields.
- Horticulture – This includes the cultivation of fruits, vegetables, flowers, and plantation crops like tea, coffee, and spices. Horticulture has become a vital sub-sector due to its higher income generation potential and role in nutritional security.
- Animal Husbandry – Encompassing the breeding and rearing of livestock such as cattle, buffalo, goats, and poultry, this sector contributes to the production of milk, meat, wool, and eggs. India is among the world’s largest producers of milk and has a robust dairy industry supported by cooperative networks like Amul.
- Fisheries – Both inland and marine fisheries form an essential part of the rural economy, providing employment and contributing to nutritional diversity. The Blue Revolution has enhanced fish production through sustainable aquaculture practices.
- Forestry – The management of forest resources supports timber production, biodiversity conservation, and environmental balance. Forestry contributes to the livelihood of tribal and forest-dependent communities while aiding in carbon sequestration.
Role in Economic Development
Agriculture and allied sectors are instrumental in ensuring inclusive growth. Their contributions extend beyond food production to various dimensions of economic and social development:
- Employment Generation: A substantial portion of the rural workforce is engaged in agriculture and its allied activities, providing both seasonal and permanent employment.
- Raw Material Supply: Agro-based industries such as textiles, sugar, paper, and food processing rely heavily on agricultural raw materials.
- Export Earnings: Agricultural exports, including spices, tea, coffee, marine products, and basmati rice, contribute significantly to foreign exchange earnings.
- Food Security: Agricultural productivity ensures the availability and affordability of essential food commodities, thus maintaining national food security.
- Rural Development: The growth of agriculture stimulates rural infrastructure development such as roads, markets, and storage facilities, leading to balanced regional growth.
Technological and Policy Interventions
The agricultural landscape has undergone substantial transformation with the introduction of scientific and technological advancements. Key interventions include:
- Green Revolution: Initiated in the 1960s, it brought about the widespread use of high-yielding varieties (HYVs), chemical fertilisers, and irrigation expansion, leading to food self-sufficiency.
- White Revolution: The launch of Operation Flood in the 1970s revolutionised milk production and made India the world’s leading milk producer.
- Blue and Yellow Revolutions: These focused on fisheries and oilseed production, respectively, to diversify agricultural income sources.
- Digital Agriculture: The use of information technology, mobile applications, and remote sensing has enabled precision farming, efficient resource use, and better market access.
Government policies and schemes such as the Pradhan Mantri Fasal Bima Yojana (PMFBY), Kisan Credit Card Scheme, and Soil Health Card Programme have been instrumental in supporting farmers against risks, improving access to credit, and promoting soil sustainability.
Challenges and Constraints
Despite significant progress, agriculture and allied sectors face persistent challenges:
- Fragmented Land Holdings: Small and marginal farmers constitute the majority, making mechanisation and modern farming economically challenging.
- Dependence on Monsoons: Rain-fed agriculture remains vulnerable to climatic variability and drought.
- Post-Harvest Losses: Inadequate storage, transport, and processing facilities lead to substantial losses of perishable produce.
- Low Productivity: Compared to global averages, productivity in several crops remains low due to limited use of modern technology and inefficient input utilisation.
- Environmental Concerns: Excessive use of chemical inputs has degraded soil health and contaminated water resources, while deforestation threatens ecological balance.
Recent Trends and Developments
Contemporary agricultural policy increasingly emphasises sustainability, diversification, and value addition. Organic farming, integrated farming systems, and natural resource management are gaining importance. The promotion of farmer-producer organisations (FPOs) aims to strengthen farmers’ bargaining power and improve market linkages.
The integration of agro-processing industries and rural entrepreneurship has created new opportunities for income diversification. Programmes under Atmanirbhar Bharat and the Doubling Farmers’ Income by 2022 strategy have encouraged innovation, improved infrastructure, and facilitated digital marketplaces such as e-NAM (National Agriculture Market).
Importance of Allied Sectors
Allied activities complement traditional farming by providing steady income and employment throughout the year. For instance:
- Livestock rearing ensures regular cash flow through milk and meat sales.
- Fisheries provide a crucial protein source and foreign exchange earnings.
- Forestry supports ecological balance and alternative livelihoods for forest-dependent communities.
- Horticulture boosts dietary diversity and exports of high-value crops.
These sectors thus reduce dependence on seasonal crops and enhance overall rural economic resilience