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Informist, Wednesday, Jan. 15, 2025

 

By Sandeep Sinha

 

MUMBAI – As the Union Budget 2025-26 (Apr-Mar) approaches, the agriculture sector stands at a critical juncture. With India being home to nearly 120 million farmers, agriculture forms the backbone of the nation's economy, contributing around 18% to the GDP and supporting over 70% of rural livelihoods. However, the sector grapples with challenges such as water scarcity, low productivity, and limited adoption of advanced technologies. In this context, the upcoming budget has the potential to lay the foundation for sustainable growth, climate resilience, and enhanced farmer incomes, according to Randhir Chauhan, managing director of Netafim India.

 

Netafim India is a wholly owned subsidiary of Israel-based Netafim, a global leader in smart irrigation solutions for sustainable productivity, and present in India since 1997. The company has provided irrigation system for over 1 million hectares of land over the years covering a wide range of crops.

 

In an email interview with Informist, Chauhan highlights the pressing needs of the sector and shares his insights on how targeted policy measures can revolutionise Indian agriculture. From advocating infrastructure status for the micro-irrigation sector to emphasising greater investment in agricultural research and development, Chauhan outlines a roadmap to address key challenges and unlock the full potential of the agri-economy.

 

Chauhan stresses upon the need for increasing research and development spending in the country, which currently stands at 0.6% of agri-GDP, limiting innovation. He believes India can tackle the growing water scarcity issue by adopting efficient irrigation methods, discouraging water-intensive crops, and promoting solar-powered micro-irrigation systems.

 

Here are the excerpts from the discussion.

 

Q. What are your key expectations from the Union Budget 2025-26 (Apr-Mar) for agriculture?
A. The Union Budget can be a defining moment for Indian agriculture. I hope it focusses on infrastructure development, advanced irrigation technologies, and targeted investments in agri-tech. India is home to 118.9 million farmers, yet only 52% of its net sown area is under irrigation. By addressing this gap, we can enhance productivity and resilience. Investments in water management and renewable energy integration are critical to achieving these goals.

 

Q. How would granting infrastructure status to the micro-irrigation sector benefit farmers and the industry?
A. Infrastructure status would revolutionise the micro-irrigation sector. It would reduce costs through tax benefits and increased funding access, making advanced irrigation solutions affordable for farmers. Around 95% of the micro-irrigation sector in the country is catered by micro, small and medium enterprises. By incentivising adoption and integrating solar-powered systems, we can significantly improve energy efficiency and profitability. For instance, studies show that solar-powered drip irrigation can save farmers up to 30% on energy costs annually.

 

Q. Agricultural R&D investment in India remains below 1% of Agri-GDP. Is this a concern?
A. India's agricultural R&D investment, at just 0.6% of Agri-GDP, lags global standards where countries like Israel invest over 4%. This underinvestment limits innovation. Boosting funds for the agri innovation fund could accelerate advancements in precision farming, smart irrigation, and data-driven solutions. For example, precision agriculture can increase crop yields by up to 40%, while reducing water usage by 50%. This is the kind of impact we need to make Indian agriculture future ready.

 

Q. Schemes like Per Drop More Crop (PDMC) have been instrumental in conserving water. What improvements do you suggest?
A. The per drop more crop scheme has provided much-needed support, with subsidies ranging from 45% to 55% for micro-irrigation systems. However, centralising the scheme can maximise its impact. For instance, some states offer an additional 50% top-up subsidy, leading to better adoption rates compared to states without such measures. A centralised framework can ensure consistency, prioritise water-scarce regions, and streamline implementation. This is essential given that 54% of India faces high to extreme water stress.

 

The per drop more crop is a centrally sponsored scheme on micro irrigation launched by the department of agriculture and cooperation under Ministry of Agriculture in 2006. The scheme has been subsumed under Pradhan Mantri Krishi Sinchayee Yojana.

 

Q. Water scarcity is a growing concern. How can Indian agriculture address this challenge?
A. Water scarcity is indeed one of the most pressing challenges for Indian agriculture. The solution lies in adopting efficient irrigation methods like drip and sprinkler systems, which can save up to 60% of water compared to conventional practices. Additionally, prioritising water-intensive crops like rice, sugarcane, and wheat for drip irrigation can significantly reduce groundwater depletion. For example, India uses around 4,000 litres of water to produce one kilogram of rice. By switching to drip irrigation, water usage can be cut by up to 40%, while simultaneously improving yields. Encouraging crop diversification into less water-intensive options like millets and oilseeds, combined with region-specific water management policies, can further enhance water efficiency.

 

Promoting solar-powered micro-irrigation systems is another game-changer. These not only conserve water but also reduce farmers' energy costs, increasing their profitability. With over 54% of India experiencing high to extreme water stress, adopting these practices is critical to ensuring sustainable agricultural growth and food security.

 

Q. How can micro-irrigation systems enhance climate resilience and farmers' incomes?
A. Micro-irrigation systems help combat climate challenges by reducing water wastage, lowering greenhouse gas emissions, and increasing productivity. Expanding these systems to canal command areas and encouraging diversification into climate-resilient crops like millets and oilseeds will not only improve adaptability but also raise farmer incomes by 20-30%. Such measures are crucial, given that agriculture contributes nearly 18% to India's GDP and supports over 70% of rural livelihoods.

 

Q. What is your message to policymakers ahead of the budget?
A: The time is ripe for bold reforms. Policymakers should prioritise granting infrastructure status to micro-irrigation, increasing research and development funding to at least 2% of agri-GDP, and centralising impactful schemes like PDMC. These initiatives will empower 120 million Indian farmers, ensure long-term food security, and position India as a global leader in sustainable agriculture. End

 

Edited by Deepshikha Bhardwaj

 

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