Categories: Business

Managing food surplus key challenge for India says RBI report


Managing food surplus key challenge for India says RBI

new Delhi. The Reserve Bank has said that the country has now reached a situation where managing surplus food grains is a big challenge. Total food production in the country reached a record 29665 million tonnes in 2019-20. On the other hand, horticulture production has been at the highest level of 32.05 million tonnes. The horticulture sector accounts for 40 percent of the gross value addition in agriculture. India has now joined the leading producing countries in terms of milk, cereals, pulses, vegetables, fruits, cotton, sugarcane, fish, and livestock. As a result, the growth rate in agricultural GVA reached 4 percent in 2019-20. The contribution of agricultural sector to economic growth has surpassed the industrial sector for the first time since 2013-14.

The RBI said in its annual report on Tuesday, "The country has now reached a situation where the management of excess foodgrains is a big challenge, a change in trade conditions in favor of agriculture in the future to sustain this dynamic change and agricultural production." It is important to generate positive supply responses in India. ”It states that despite various challenges, Indian agriculture is going through a transition phase, moving towards production activities. According to the report, that is why the priority is to move towards a policy strategy that ensures the price of food grains to the customers at a reasonable level with the continuous increase in the income of the farmers. An efficient supply system is important for this. According to RBI, according to this, now the major reforms should be emphasized to facilitate free trade in agriculture sector. The report said that with the recent reforms in agricultural marketing and infrastructure, if a favorable trustworthy trade policy is implemented, it will open up new opportunities in the agricultural sector. The RBI has recommended crop diversification, less emphasis on high water use crops and emphasis on food processing. The report also emphasizes on agricultural exports.

This post was published on August 26, 2020 2:56 am

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