Context: Compared to its close competitors, strength of India’s agricultural regulatory environment is weak.
About EBA
It measures the extent to which government regulatory systems in 101 countries make it easier to operate agricultural activities.
Based on 8 indicators:
Supplying seed
Registering fertilizer
Securing water
Registering machinery
Sustaining livestock
Protecting plant health
Trading food and
Accessing finance.
Top ranking countries: France, Croatia, and the Czech Republic.
India’s performance in the World Bank’s Enabling the Business of Agriculture (EBA), 2019
India rank and relative position: India ranks 49/101 and among the emerging groups of 20 (EG 20) countries, India has second least favourable regulatory environment after South Africa.
India- weakest performance: On five out of eight indicators
Registering fertilizer: Cause productivity loss resulting in low capacity to produce surplus.
Registering machinery: Cause higher cost of food production
Securing water: Cause uncertainty reducing acceptance for new opportunities.
Sustaining livestock: Limiting scope for extra income.
Protecting plant health indicators: Limiting access to global agricultural value chain.
India- better performance: Comparative score of India is high on supplying seed, trading food and accessing finance.
Way forward
Reform irrigation management: Regulatory framework that envisages reducing variability of farm output, prices, minimising vulnerability to natural shocks, and incentivising crop diversification.
Robust seed supply system: Key for improving yield and adopting new crop varieties.
Expand warehouse receipts system: to enable farmers to obtain credit needed to invest in agriculture.
By using warehouse receipts as collateral, farmers can receive credit.
Enact necessary laws and regulations to fill the gaps and minimizing constraints for agri-production and marketing.
Leveraging global scenario: Future of world agriculture and food production expected to increasingly depend on middle-income countries such as China, India, Brazil, and Indonesia.
Gaining access to global agricultural value chain: Requires sound regulatory framework on phytosanitary standards, SPS.
E.g. National Agrarian Health Service (SENASA-Peru), transformed Peru into leading exporters of asparagus.