Chapter 13 · Economics

Indian Agriculture

Crops · Landholdings · Revolutions · MSP/CACP/FCI · Horticulture · Schemes — BPSC / BSSC

Agriculture — Introduction
  • Agriculture is a subject of the State List
  • Backbone of the Indian economy
  • Falls under the primary sector of the economy
  • Allied sectors: Animal husbandry, fisheries, forestry, mining, etc.

Organic/Natural Agriculture: Environment-friendly, minimal use of synthetic fertilisers and pesticides, uses organic/natural manure. Sikkim is India's first fully organic state.

3.8%Agri Growth Rate (2024–25)
1.4%Agri Growth Rate (2023–24)
Contribution / Importance of Agricultural Sector
Population Engaged (Census 2011)54.6%
Population Deriving Livelihood (Eco. Survey 2024–25)46.1%
Contribution to GDP (1950–51)55.4%
Contribution to GDP (2024–25)16%
⚠ EXAM TRAP
GDP share of agriculture fell from 55.4% (1950-51) to 16% (2024-25), but the workforce engaged (54.6%, Census 2011) remains high — this mismatch between GDP share and employment share is a classic exam point.
Major Crops (Seasonal Classification)
Rabi (Winter)Kharif (Monsoon)Zaid (Summer)
Wheat, Chickpea, Barley, Mustard, PeaPaddy, Jowar (Sorghum), Bajra, Maize, Cotton, Sugarcane, Sesame, Soybean, Pigeon Pea (Arhar), Groundnut, Moong, UradWatermelon, Cucumber, Muskmelon, Sunflower

Commercial Crops: Groundnut, Mustard, Sesame, Sugarcane, Jute, Mesta, Tea, Coffee. Cash Crops: Jute, Sugarcane, Cotton, Tobacco. GM Crop: Bt-Cotton (only approved GM crop in India).

⚠ EXAM TRAP
Sugarcane, Groundnut, Mustard, and Sesame appear in BOTH the "Commercial Crops" AND "Cash Crops" lists — the two categories overlap significantly and are often used interchangeably in questions.
Size of Agricultural Holdings
TypeSize
Marginal holdingsLess than 1 hectare
Small holdings1–2 hectares
Semi-medium holdings2–4 hectares
Medium holdings4–10 hectares
Large holdingsMore than 10 hectares

India has the highest number of marginal holdings. Type of agriculture practiced in India: Subsistence farming.

Irrigation
Gross Cropped Area Irrigated55%
States with Most Irrigated AreaUttar Pradesh, Punjab, Madhya Pradesh
Most Irrigated State (by % of total area)Punjab
Least Irrigated State (by %)Mizoram
Largest Unirrigated AreaMaharashtra

Major Irrigation Sources

SourceShare
Tube Wells57% (most in Uttar Pradesh)
Canals32%
Wells16%

State with most irrigation by ponds: Tamil Nadu.

Agricultural Growth — Five-Year Plans
PlanActual Growth (%)
Second Plan3.17%
Fifth Plan3.28%
Seventh Plan3.41%
Eighth Plan4.68%
Eleventh Plan3.6%
Twelfth Plan4.0%
⚡ QUICK RECALL
8th Plan (4.68%) recorded the highest agricultural growth among these — consistent with the 8th Plan being the "most successful" plan overall.
Land Reforms in India
  • Tenancy Reforms
  • Abolition of Intermediaries
  • Land Ceiling (limit on land holding)
  • Abolition of Zamindari System — Uttar Pradesh
  • System of cooperative farming
Land Reform Successful StatesKerala, West Bengal
Agricultural Credit
Institutional SourcesMore than 65% — Government, Cooperative Societies, Commercial Banks
Non-Institutional SourcesMoney Lenders, Mahajans, Landlords, Relatives

Types of Agricultural Credit

TypeDuration
Short-termLess than 15 months
Medium-term15 months to 5 years
Long-termMore than 15 years

Land Development Bank: Provides long-term credit to the agricultural sector. Commercialisation of Agriculture: Leads to a crisis of marketable surplus.

Green Revolution (1965)
Father (World)Norman Borlaug (Mexico)
Father (India)Dr. M.S. Swaminathan
BirthplacePantnagar (Uttarakhand)
Affected AreasPunjab, Haryana, Western Uttar Pradesh
  • Development of new, high-yielding varieties of seeds (HYV)
  • Key factors: HYV seeds, irrigation, chemical fertilisers
  • Maximum impact on wheat production; paddy to some extent
White Revolution & Second Phase of Green Revolution
White Revolution (Operation Flood)1970, started by Dr. Verghese Kurien — increase in milk production
Second Phase of Green RevolutionMid-1970s–80s — expanded HYV seeds/fertilisers/irrigation to more crops and regions
Rainbow Revolution & Colour-coded Revolutions

Rainbow Revolution: A holistic mix of all revolutions.

RevolutionSector / Product
WhiteMilk Production
YellowOilseed Production
RoundPotato
BlueFish
RedMeat / Tomato
PinkPrawn / Onion
BlackPetroleum
GreyFertiliser
SilverEgg
GoldenHorticulture
SaffronSolar Energy
⚠ EXAM TRAP
"Silver Revolution" has two meanings in different contexts: Animal Welfare/Grains (per Rainbow Revolution classification) vs Egg Production (in the general colour-coded list) — check the question context carefully.
NABARD
Established1982
HeadquartersMumbai
Recommended ByShivraman Committee
Kisan Credit Card Scheme1998–99

Apex institution for providing finance for agriculture and rural development.

CACP & MSP
CACP Established1965, as Agricultural Prices Commission (APC)
Renamed1985 → Commission for Agricultural Costs and Prices
HeadquartersNew Delhi

Advises the government on fixing agricultural product prices; mandated to recommend MSPs.

Minimum Support Price (MSP)

Started1966–67

Announced by government on CACP's recommendation, for 22 mandated crops + FRP for sugarcane (14 Kharif, 6 Rabi, 2 other commercial crops):

  • 7 Cereals: Paddy, Wheat, Barley, Jowar, Bajra, Maize, Ragi
  • 4 Commercial Crops: Copra, Sugarcane, Cotton, Raw Jute
  • 5 Pulses: Gram, Arhar/Tur, Moong, Urad, Lentil
  • 7 Oil Seeds: Groundnut, Rapeseed/Mustard, Soybean, Sunflower, Sesamum, Nigerseed

FRP (Fair and Remunerative Price) is specific to sugarcane pricing.

⚠ EXAM TRAP
Sugarcane price is fixed via FRP (Fair and Remunerative Price), NOT MSP — a commonly confused exception among the 22+ mandated crops.
FCI, TPDS & National Food Security Act
FCI Established1965 — Purchase, Storage, Transportation, Distribution, Sale of food grains
TPDS Established1997 — affordable grains to people
National Agriculture CommissionFormed 2004; Chairman: M.S. Swaminathan; Report 2006

National Food Security Act, 2013

  • Started: 10th November 2013
  • Implemented in all 29 states/UTs from November 2016
  • Rural: 75% population; Urban: 50% population — food grains at subsidised rates

CAPART: Formed in 1986 by merging PADI (People's Action for Development India) and CART (Council for Advancement of Rural Technology) — supports voluntary action and technological innovation in rural development.

Horticulture Sector

Includes flowers, vegetables, root crops, fruits, spices, medicinal plants.

India's Share in World Fruit Production~11%
World Rank in Fruit Production2nd
Top Fruit Producing StateAndhra Pradesh
Spices ProductionIndia is the largest producer
National Horticulture MissionStarted 2005–06
National Horticulture BoardEstablished 1984; HQ: Gurugram, Haryana

India is known as the "Land of Spices"; Kerala is the "Spice Garden of India."

Dairy Sector
  • India ranks 1st in livestock population in the world
  • India ranks 1st in milk production in the world
  • Largest milk producing state: Uttar Pradesh
Fisheries
World Rank3rd-largest producer

Top Fish-Producing States

  • 1. Andhra Pradesh
  • 2. West Bengal
  • 3. Karnataka

National Fisheries Development Board: Established 2006, HQ Hyderabad.

⚡ QUICK RECALL
International Year of Millets was declared for 2023 by the United Nations — India led this global initiative given its status as a major millet producer.

First state to give agriculture the status of industry: Maharashtra.

Agricultural Trade
Share of Agriculture in India's Total Exports11.8%
India's Share in Global Agricultural Exports1.7%

Top items under Agri Exports: Cereals, Spices, Marine Products.

ProductExport Areas
Basmati RiceUttarakhand, Punjab
SpicesKerala
MangoUttar Pradesh, Maharashtra
VegetablesUttar Pradesh, West Bengal
OnionMaharashtra

Agricultural Export Policy — 2018

  • Aims to double agricultural exports, diversify destinations, promote high-value exports
  • Target: $100 billion in coming years
  • Promotes indigenous, innovative, organic, local, traditional and non-traditional agri exports
Related Bodies
APEDAEstablished 1986 — top agency for agricultural export areas
NAFEDEstablished 1958 — National Agriculture Cooperative Marketing Federation of India
TRIFEDEstablished 1987, functioning 1988 — Tribal Cooperative Marketing Development Federation of India
Price Stabilisation FundFor onion, potato, pulses
ATMAEstablished 2005 — provides new technologies and information to farmers

National Agriculture Policy

2007 was the Third policy of independent India (First: 1992, Second: 2000).

FSSAIAct 2006; Established 2008 — science-based food safety standards
Major Schemes Related to Agriculture
SchemeStartedObjective
National Food Security Mission (NFSM)2007Increase rice, wheat, pulses production by 10, 8, 2 MT respectively
Rashtriya Krishi Vikas Yojana2007–08Encourage states for comprehensive agricultural/allied sector development
National Mission Food Processing2012Increase farmers' income; store food items longer
National Sustainable Agriculture Scheme2014Sustainable agricultural development
National Program for Dairy DevelopmentFebruary 2014Improve breed of animals
Soil Health Card SchemeFebruary 2015Provide soil health cards to farmers
Pradhan Mantri Krishi Sinchai Yojana1st July 2015Enhance irrigation access ("more crop per drop"); expand cultivable land
Pradhan Mantri Fasal Bima Yojana18th February 2016Compensation for crop loss due to natural calamities
e-NAM Scheme2016Provide fair price for farmers' produce
Pradhan Mantri Kisan Sampada YojanaApril 2017Reduce food wastage, increase farmers' income
Pradhan Mantri Kisan Samman Nidhi2019Income support of ₹6000 annually in 3 instalments
Pradhan Mantri Kisan Maan-Dhan Yojana12 September 2019₹3000/month pension after 60 years for small/marginal farmers (aged 18–40)
Pradhan Mantri Matsya Sampada Yojana10 September 2020Self-reliant villages; double income of fishermen and allied farmers
⚠ EXAM TRAP
Pradhan Mantri Kisan Samman Nidhi (₹6000/year income support) and Pradhan Mantri Kisan Maan-Dhan Yojana (₹3000/month PENSION) are both "PM Kisan" schemes but serve very different purposes — frequently confused.
Quick Summary / Reference Table
TopicKey Fact
Agriculture — ListSubject of State list | Backbone of Indian economy | Primary sector
SikkimIndia's first fully organic state
Agriculture GDP share55.4% in 1950–51 | 16% in 2024–25
Population in Agriculture54.6% (Census 2011) | 46.1% livelihood (Economic Survey 2024–25)
India's Farming TypeSubsistence farming
GM Crop in IndiaBt-Cotton (only approved GM crop)
Marginal HoldingsLess than 1 hectare | India has highest number
Gross Irrigated Area55% of gross cropped area
Most Irrigated State (%)Punjab
Least Irrigated State (%)Mizoram
Largest Unirrigated AreaMaharashtra
Major Irrigation SourceTube Wells 57% | Canals 32% | Wells 16%
Most Irrigation by PondsTamil Nadu
Land Reform Successful StatesKerala and West Bengal
Abolition of ZamindariUttar Pradesh
Green Revolution — Started1965
Father of Green Revolution (World)Norman Borlaug (Mexico)
Father of Green Revolution (India)Dr. M.S. Swaminathan
Green Revolution — Birth PlacePantnagar (Uttarakhand)
White Revolution (Operation Flood)1970 | Dr. Verghese Kurien
NABARD1982 | HQ: Mumbai | Shivraman Committee | Kisan Credit Card: 1998–99
CACPEstablished 1965 as APC | Renamed 1985 | HQ: New Delhi
MSP — Started1966–67 | 22 mandated crops
FCIEstablished 1965 | Purchase, Storage, Transport, Distribution, Sale of food grains
TPDSEstablished 1997 | Affordable grains to people
National Food Security Act2013 | Started 10 Nov 2013 | Rural 75%, Urban 50%
National Agriculture CommissionFormed 2004 | Chairman: M.S. Swaminathan | Report 2006
National Horticulture BoardEstablished 1984 | HQ: Gurugram (Haryana)
National Horticulture MissionStarted 2005–06
India — Dairy1st in livestock population | 1st in milk production | Largest state: UP
India — Fisheries3rd-largest producer | Top state: Andhra Pradesh
International Year of Millets2023 (declared by UN)
First State — Agriculture as IndustryMaharashtra
APEDAEstablished 1986 | Top agency for agri export areas
NAFEDEstablished 1958 | National Agri Cooperative Marketing Federation of India
TRIFEDEstablished 1987 | Functioning 1988 | Tribal Cooperative Marketing
Agricultural Export Policy2018 | Target: $100 billion exports
ATMAEstablished 2005 | New technologies for farmers
National Agriculture Policy2007 | Third policy | First: 1992, Second: 2000
FSSAIAct 2006 | Established 2008 | Science-based food standards
India — SpicesLargest producer | Kerala → Spice Garden of India
Agriculture share in exports11.8%
© ExamFusion Prep. All Rights Reserved.