Atmanirbharta in Indian Agriculture

Context: Self-reliance in key Agri-inputs like seeds, fertilisers, and tractors will pave the way for self-reliance in Indian agriculture.

A case for Self-Reliance in Key Agri-Inputs 

• Seeds: produced in India can be exported to many developing countries in South and South-east Asia as well as Africa.
• Producing competitively-priced seeds for hybrid rice (corn, cotton) and vegetables with an efficient regulatory system.
• Allowing Bt-cotton in 2002 made India the largest producer and the second-largest exporter of cotton in the world by 2013-14. 
• Fertilisers: India has been a net importer of NPK fertiliser, with urea ($2.9 billion), followed by Diammonium Phosphate (DAP, $2 billion) and Muriate of Potash (MOP, $1.14 billion). 
• Challenges

• Import dependency: for MOP and DAP (rock and the finished product).
• 70% of gas being used in urea plants: is imported at a price much higher than the price of domestic gas. 

• Way Forward

• Change the system of fertiliser subsidies: by depositing equivalent cash directly into farmers’ accounts.
• Allow the private sector plants to compete and expand: urea production in a cost-competitive manner.

• Farm Machinery: especially tractors, in which India is the largest manufacturer in the world. 
• Indian tractor companies can compete and bring out better products at a low cost.
• Creating a market for low-cost tractor services: as it is not feasible for small landholders to own the tractor.

• Start-ups and apps for “Uberisation” of tractor services.

Conclusion: For achieving self-reliance in agriculture it is necessary to unshackle the private agricultural sector from unnecessary and complex regulations.