India's agricultural sector, which contributes 17% to the nation's GDP and employs over half of the workforce, faces persistent challenges from market volatility and climate change. To address these issues, the government has implemented several support measures aimed at stabilizing the market and ensuring food security.
The Indian government has introduced various schemes to mitigate market volatility and support farmers. The Price Stabilization Fund (PSF) enables market interventions to control price fluctuations of essential commodities like onions, potatoes, tomatoes, and pulses, thereby protecting consumer interests.
Additionally, the Operation Greens initiative focuses on stabilizing the supply of tomatoes, onions, and potatoes (TOP crops) by promoting farmer producer organizations (FPOs), enhancing agri-logistics, and developing processing facilities. This program aims to ensure year-round availability and mitigate price volatility.
Despite these efforts, the sector continues to grapple with market volatility and climate change. Rising temperatures and erratic rainfall patterns have adversely affected crop yields, particularly of wheat, rice, and pulses. For instance, the Indian Meteorological Department has forecasted above-average temperatures for the winter season, raising concerns about key crops like wheat, rapeseed, and chickpea, which thrive in cold weather.
In response, agricultural research organizations are developing climate-resilient seed varieties to enhance crop resilience and ensure food security. Farmers are encouraged to adopt these seeds to cope with changing climatic conditions.
Farmer protests have highlighted the need for guaranteed minimum prices for crops and increased state support. In December 2024, farmers marched towards New Delhi demanding legal guarantees for minimum purchase prices for essential crops beyond just rice and wheat. They also sought loan waivers and fulfillment of the government's promise to double their earnings.
In response to these concerns, the government has increased the purchase price of new-season wheat by 6.6% to encourage domestic production and reduce reliance on imports.
While the Indian government has implemented several measures to support the agricultural sector, challenges such as market volatility and climate change persist. Ongoing efforts to develop resilient crop varieties, stabilize prices, and address farmer grievances are crucial for ensuring the sustainability and growth of India's agricultural economy.