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LATEST NEWS UPDATES | Step up agri-spending, boost farm incomes -Poornima Varma

Step up agri-spending, boost farm incomes -Poornima Varma

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published Published on Feb 9, 2022   modified Modified on Feb 9, 2022

-The Hindu

India’s poor AOI is a stark reminder of the need to attain a key sustainable development goal of higher agri-growth

While the overall budgetary allocation towards the agricultural sector has marginally increased by 4.4% in the Union Budget 2022-23, the rate of increase is lower than the current inflation rate of 5.5%-6%. The Food and Agriculture Organization (FAO) of the United Nations (UN) report for 2001 to 2019 shows that, globally, India is among the top 10 countries in terms of government spending in agriculture, constituting a share of around 7.3% of its total government expenditure. However, India lags behind several low-income countries such as Malawi (18%), Mali (12.4%), Bhutan (12%), Nepal (8%), as well as upper middle-income countries such as Guyana (10.3%) and China (9.6%).

India is ranked low

The picture changes and rather looks disappointing when we look at the Agriculture Orientation Index (AOI) — an index which was developed as part of the Goal 2 (Zero Hunger) of the 2030 Agenda for Sustainable Development in 2015. The Sustainable Development Goal (SDG) 2 emphasises an increase in investment in rural infrastructure, agricultural research and extension services, development of technology to enhance agricultural productivity and eradication of poverty in middle- and lower-income countries. The AOI is calculated by dividing the agriculture share of government expenditure by the agriculture value added share of GDP. In other words, it measures the ratio between government spending towards the agricultural sector and the sector’s contribution to GDP. India’s index is one of the lowest, reflecting that the spending towards the agricultural sector is not commensurate with the sector’s contribution towards GDP.

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The Hindu, 9 February, 2022, https://www.thehindu.com/opinion/op-ed/step-up-agri-spending-boost-farm-incomes/article38398661.ece?homepage=true


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