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    Home»Economy & Business»Global Economy»India needs income-centric agri policies, greater Centre-state coordination: EAC-PM chairman
    Global Economy

    India needs income-centric agri policies, greater Centre-state coordination: EAC-PM chairman

    AdminBy AdminJuly 23, 2026No Comments5 Mins Read0 Views
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    India needs to shift from a production-centric approach to an income-centric agriculture strategy, with greater emphasis on crop diversification, market reforms, agro-processing and technology, said S Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM) on Thursday.

    Speaking at an agriculture event organised by the Indian Chamber of Commerce in Delhi, Dev said India had made significant progress since the Green Revolution and had transformed from a food-deficit nation into one of the world’s largest producers of foodgrains, fruits, vegetables, milk and fisheries.

    Agriculture, livestock and fisheries account for about 17% of India’s GDP and 43% of employment, he said, adding that the purchasing power of nearly half the population is also crucial for generating demand for manufacturing and services.

    “We have to shift our focus from a production approach towards an income-centric approach,” noted Dev.

    He identified four key areas for improving farm incomes – diversification towards high-value agriculture, strengthening post-harvest management and marketing, expanding food and agro-processing, and supporting small and marginal farmers through collective institutions.

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    Dev said farmers should be encouraged to move beyond traditional rice and wheat cultivation towards horticulture, fisheries, oilseeds, pulses and other high-value activities. However, he cautioned that diversification would not happen unless alternative crops offered better returns.

    “Unless we increase the rate of return, farmers will not shift to oilseeds, pulses and other crops,” he said, pointing to differences in returns between rice and crops such as jowar and ragi.He also called for agricultural market reforms, saying farmers need better access to markets and higher prices. While agriculture is primarily a state subject, states have an important role to play in implementing market reforms, he said.

    Dev also argued that India needs to move towards an export-led agriculture strategy. With the country entering into more free trade agreements, India should push for greater market access for agricultural products while addressing non-tariff barriers, including sanitary and phytosanitary standards and technical barriers to trade.

    “As we enter into more Free Trade Agreements, we can push exceptionally for greater market access for our farm products,” he said, adding that Indian exporters must ensure their products meet global standards.

    Technology can transform agriculture
    Dev said technology, including biotechnology, artificial intelligence, drones, satellite applications and digital public infrastructure, can bring structural changes to Indian agriculture.

    He highlighted the potential of gene-editing technology and genetically modified crops to raise yields, while calling for higher investment in agricultural research and development by both the government and private sector.

    Digital technologies, he said, are already shortening agricultural value chains and enabling farmers to access evidence-based advice. Drones, mobile applications and data-driven advisories are increasingly reaching farms.

    He also highlighted the potential of AgriStack and satellite data to improve fertiliser use by providing plot-level information and identifying variations in fertiliser consumption.

    Artificial intelligence, he said, could be used not only to increase agricultural supply but also for demand forecasting, while blockchain-based systems could support traceability in high-value crops and exports.

    However, he stressed the need to ensure that new technologies reach farmers across the country and do not remain limited to better-connected sections of society.

    FPOs, cooperatives key to raising small farmers’ incomes
    Dev said collective action is one of the most powerful tools available to small and marginal farmers, who account for around 86% of India’s farmers.

    Farmer Producer Organisations (FPOs), cooperatives, Primary Agricultural Credit Societies and other farmer institutions can help producers access inputs, technology and markets at scale, he said.

    “The most powerful lever for small and marginal farmers is collective strength in the marketplace,” Dev said, adding that aggregation is essential because individual small farms produce limited quantities.

    He also stressed the growing role of women in agriculture, particularly as male migration increases, and said policies must be designed to support women farmers.

    The cooperative sector, with more than 8 lakh cooperatives and over 30 crore members, represents one of the world’s largest people-led movements, Dev said. Initiatives such as the National Cooperative Policy and White Revolution 2.0, he added, could help professionalise cooperatives and increase their contribution to the economy.

    Agro-processing can drive rural industrialisation
    Dev said agro-processing offers a major opportunity to link agriculture with manufacturing, create rural jobs and improve income distribution.

    “Agro-processing provides a viable pathway for rural industrialisation,” he said, calling for greater participation from MSMEs, producer-manufacturer cooperatives and FPOs.

    He said reducing post-harvest losses and improving agricultural supply chains could also help contain food inflation. High-quality processed products based on India’s traditional knowledge, unique agro-climatic conditions and regional strengths could have significant export potential.

    Dev called for the development of cluster-based agro-processing units to achieve economies of scale and generate knowledge spillovers.

    He suggested a two-pronged export strategy, with smaller artisanal clusters focusing on value-based exports built around geographical indications, traditional craftsmanship, organic production and quality, while larger and more efficient clusters focus on volume-based competitiveness.

    Maintaining consistent quality and meeting sanitary and phytosanitary standards would be critical, he said, suggesting the use of mobile laboratories and shared facilities such as irradiation units to help clusters meet export requirements.

    Need for centre-state coordination
    Dev also called for greater coordination between the Centre and states, noting that agriculture is a state subject and that conditions vary significantly across the country.

    He said a food-systems approach covering production, processing, distribution and consumption requires greater convergence between ministries and governments.

    “There is a need for greater convergence across ministries to achieve better results, greater value addition and more employment,” he said.



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