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Amid COVID-19, Agriculture Sector Grows At 3.9% In 2021-22: Centre

Talking about agricultural credit and marketing, the survey mentioned that the agricultural credit flow for the year 2021-22 has been fixed at Rs. 16,50,000 crores and till September 30 2021, against this target a sum of Rs 7,36,589.05 crores has been disbursed.

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Ahead of the Union Budget session, Finance Minister Nirmala Sitaraman tabled the Economic Survey for 2021-22  on Monday which points out several important aspects of the Indian economy, amid the ongoing COVID-19 pandemic. 

The Finance Ministry in a statement said that the Agriculture sector which accounts for 18.8 per cent of the Gross Value Added (GVA) of the country in 2021-22 has experienced buoyant growth in the past 2 years.

According to the survey, the sector grew at 3.9 per cent in 2021-22 and 3.6 per cent in 2020-21 showing resilience in the face of COVID-19 shock. 

This is due to the good monsoon, various government measures to enhance credit availability, improve investments, create the market facility, promote infrastructure development and increased provision of quality inputs to the sector, the survey mentioned. 

The share of the agriculture and allied sector in total GVA of the economy has settled at around 18 per cent in the long term. In the year 2021-22, it is 18.8 per cent and in the year 2020-21 it was 20.2 per cent, the survey revealed. 

Another trend observed is the higher growth in allied sectors (Livestock, Forestry and Logging, Fishing and Aquaculture) compared to the crop sector. Recognising these allied sectors as engines of high growth the Committee on Doubling Farmers’ Income (DFI 2018) had also recommended focused policy with concomitant support systems to boost agricultural incomes.

The survey noted that there is a direct correlation between capital investments in agriculture and its growth rate. The Gross Capital Formation in the agricultural sector relative to the GVA in the sector is showing a fluctuating trend in sync with the variation in private sector investments, whereas the public sector investments have remained stable at 2-3 per cent over the years. 

Talking about agricultural credit and marketing, the survey mentioned that the agricultural credit flow for the year 2021-22 has been fixed at Rs. 16,50,000 crores and till September 30 2021, against this target a sum of Rs 7,36,589.05 crores has been disbursed. 

Moreover, under Atma Nirbhar Bharat programme, the government also announced Rs. 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards (KCC). Towards this end, banks have issued KCCs to 2.70 crore eligible farmers as on 17.01.2022. Further Government has extended the KCC facility to fisheries and animal husbandry sector in 2018-19.


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COVID-19 agriculture sector centre