How Agriculture Sector Impacted by COVID -19 Pandemic

How Agriculture Sector Impacted by COVID -19 Pandemic

The agriculture sector conveys tremendous significance for the Indian economy. It contributes almost one-6th to the Indian national income and gives work to almost half of the labour force.

It is basic for guaranteeing the food security of the country and impacts the development of the auxiliary and tertiary areas of the economy through its forward and reverse linkages.

Agrarian development lessens poverty straightforwardly, by raising agricultural income, and by implication, through employment in agriculture and allied sector and decreasing food costs.

Coronavirus Concerns with Indian Rural Economy –

The COVID-19 pandemic has happened when the worldwide and Indian monetary development was relied upon to decelerate. The last couple of quarters have seen a balance of development pace of the Indian economy, with quarterly development in GVA declining from 7.63% in Q4 in 2017-18 to 3.04% in Q4 of 2019-20.

The declining pattern may have gotten more serious because of COVID-19 pandemic, as shown by numerous elements. For example, as of late delivered appraises by Govt of India demonstrate that creation in the eight center areas of our economy contracted for the third month straight, with yield declining 23.4 percent in May 2020.

Generally, development has been antagonistically influenced in most center areas, aside from fertilizers.

Impact of COVID- 19 Pandemic on Agriculture and Allied Sector –

Effect on Agricultural Production –

At the All-India level, farming creation in practically half (47%) was unfavorably influenced by the effect of COVID-19. The effect of lockdown forced in the whole nation inferable from COVID-19 on the general creation levels in the rural area has been critical with by and large creation levels in the agriculture and allied area declining by 47%.

A portion of the purposes behind the decrease in rural exercises incorporate the absence of accessibility of work and machines, the need for social separating, and limitations on the free movement of men and farm equipment.

Effect on Prices of Agri Inputs –

Because of interruption in production network inferable from limitations on the movement of vehicles and opening of shops and markets, costs of Agri inputs viz. seeds (8.8%), composts (10.0%), pesticides (9.0%), grub (11.6%), expanded in the scope of 9 to 12 percent.

As the accessibility of agri-inputs had declined in India. Hypothetically, lower accessibility is required to bring about more exorbitant costs of agricultural products.

Effect on Agriculture Marketing –

Despite the fact that local mandis were opened by different State Governments under their jurisdiction, yet limitations on the movement of vehicles had antagonistically affected the smooth activity of farming marketing.

The effect on the activity of country haats was more extreme, being unfavorably influenced. This was primarily because of the complete prohibition on the opening of rustic haats by the government in the greater part of the areas in the country.

Effect on Farm Gate Prices –

The spread of the pandemic and the resulting lockdown that was forced by the public authority essentially affected the farm gate costs of items in the agribusiness sector.

This was predominantly because of the way that with the closing down of significant areas of the economy, the interest for these wares likewise evaporated because of the absence of transport, closing down of rustic haats/markets and shops which prompted a diminishing in costs across numerous locale of the country.

Effect on Banking Services in Agriculture Sector –

Taking everything into account, admittance to credit through term loaning and KCC was unfavorably affected in around 89% and 59 percent, separately. At an all-India level, microfinance exercises were antagonistically affected.

Essentially, the antagonistic effect was accounted for in exercises of FPOs and Farmers Clubs advanced by NABARD.

In any case, numerous SHGs and FPOs took advantage of the chance of making face masks and sanitizers as additionally direct selling of vegetables/organic products to the clients, along these lines helping the local area and organization as likewise expanding their business.

Effect on Micro Small and Medium Enterprise (MSME) Sector –

MSME area was the most noticeably terrible hit area by the COVID pandemic as far as the effect on value level of crude materials, business, creation level, buyer interest, and interruptions in supply chains. Decrease underway level advances decrease in income.

Effect on Transporting Harvested Produce to APMCs/Mandis Through Road Transport –

The transporting of the gathered produce had been affected unfavorably because of constraints of street transportation in numerous locales of India.

The public authority had excluded (with the beginning limitation for 4-5 days) the movement of fundamental merchandise from the limitations forced during the lockdown, consequently diminishing the degree of antagonistic effect on the capacity of farmers to take the collected produce to APMCs/Mandis through streets.

Perfect Solutions to Recover in Agriculture and Allied Sector –

  • Improvement in the paid support through PM-KISAN could be the best solution.
  • Interest waiver for the agricultural loan for somewhere around one year might be considered.
  • Microfinance exercises should be reactivated
  • MSME area should be upheld through improved credit support
  • Little street transport vehicle to make the most of new arising openings for direct selling of Agri and cultivation products to customers.
  • Rustic godowns and cold stockpiling foundation limits in provincial locales should be expanded
  • Subsidy on Farm equipment and fodder banks for small and marginal farmers.

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