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Resource centre on India's rural distress
 
 

The importance of good harvests in state elections - Roshan Kishore

-Livemint.com
 
Sharp agriculture growth is a necessary factor to beat anti-incumbency

The modest price hike in minimum support prices of some crops this week has been lauded as good economics. But the question that will be haunting the government is whether it has done enough to alleviate the distress in rural areas, especially when the Bihar polls later this year are seen as a litmus test for the rule of the National Democratic Alliance.

The share of agriculture in the country’s economic output has halved over the past 25 years to around 14%, but it’s the dominant occupation in rural areas. Thus, growth in farm output remains crucial to the electoral fortunes of political parties. Data shows ensuring farm growth at a sharp pace is a necessary factor for state governments that want to be re-elected.

The government’s chief economic adviser Arvind Subramanian said as much when he cited the finance minister at the convocation of the National Institute of Bank Management in April.

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