Context: In the recently formed NDA cabinet under Modi 3.0, Shivraj Singh Chouhan’s appointment to head both the Ministry of Agriculture and Farmers Welfare (MoA&FW) and the Ministry of Rural Development is a strategic move.
During his tenure, Madhya Pradesh achieved impressive economic growth, with an overall GDP growth rate of 7% annually and agricultural GDP growth rate of 6.8% per annum from 2005-06 to 2023-24.
This growth surpassed national averages significantly, demonstrating his effective leadership in fostering inclusive development.
Challenges and Strategies Ahead
- Enhancing Agricultural Productivity Amid Climate Change
- Chouhan faces the critical challenge of boosting India’s agricultural GDP growth to over 5% annually while increasing farmers’ incomes.
- Increasing expenditure on agricultural R&D and extension services to at least 1% of agri-GDP.
- Promoting resilient farming practices and heat-resistant crop varieties to mitigate climate risks.
- Implementing water-efficient technologies to ensure sustainable water use (“more crop, per drop”).
- Chouhan faces the critical challenge of boosting India’s agricultural GDP growth to over 5% annually while increasing farmers’ incomes.
- Reforming Agricultural Markets and Trade Policies
- To improve farmers’ access to global markets and ensure fair prices for their produce, Chouhan must advocate for:
- Revising policies that hinder export opportunities, such as lifting bans on exports like onions and easing restrictions on rice exports.
- Collaborating with other ministries to establish efficient value chains for high-value agricultural products, leveraging private sector partnerships and models like the AMUL cooperative.
- To improve farmers’ access to global markets and ensure fair prices for their produce, Chouhan must advocate for:
- Overhauling Fertiliser Subsidy Policy
- A significant structural reform Chouhan should pursue is the transfer of the fertiliser subsidy from the Ministry of Chemicals and Fertilisers to MoA&FW:
- Directly transferring fertiliser subsidies to farmers’ accounts to empower them in choosing fertiliser types.
- Gradually freeing fertiliser prices while promoting the use of bio-fertilisers and natural farming methods.
- Implementing digital fertiliser coupons to facilitate this transition and reduce environmental impact.
- A significant structural reform Chouhan should pursue is the transfer of the fertiliser subsidy from the Ministry of Chemicals and Fertilisers to MoA&FW:
Conclusion
Shivraj Singh Chouhan’s appointment as the head of MoA&FW and Ministry of Rural Development is pivotal in addressing the rural distress evident from recent electoral setbacks. His track record in Madhya Pradesh demonstrates a proactive approach to agricultural growth and rural prosperity. By focusing on innovation, market reforms, and sustainable practices, Chouhan can play a transformative role in realizing Prime Minister Modi’s vision of doubling farmers’ incomes and ensuring robust rural development across India.