Agricultural Trade and Food Security in India
Agriculture
- PYQs8
- Articles1
Background
UPSC consistently focuses on the agricultural sector's role in India's economy, food security, and rural development. Understanding the complexities of international agricultural trade, its impact on farmers, and policy responses is crucial.
Agriculture in India is a foundational sector, providing livelihood to over half the population and ensuring national food security, making its protection in international trade agreements a political and economic necessity. The sector faces unique challenges due to fragmented landholdings, monsoon dependence, and thin margins, which influence India's stance on market access in agricultural trade.
Facts & tables
- Contribution to Economy and Livelihood
- Contributes ~16% to GDP and supports over 50% of the population.
- Farm Size Disparity
- Average Indian farm size (0.73 hectares) is significantly smaller than Australia's (over 1,400 hectares).
- Protection of Sensitive Products
- India typically restricts market access for sensitive agricultural products (e.g., dairy, wheat, rice) in trade agreements.
- Opportunities for Cooperation
- Biosecurity, phytosanitary standards, precision farming, cold-chain infrastructure, and climate adaptation technologies.
| Parameter | India | Australia |
|---|---|---|
| GDP Contribution | ~16% | ~2.5% |
| Population Supported | >50% | Minority (export industry focus) |
| Average Farm Size | 0.73 hectares | >1,400 hectares |
| Type | Reference |
|---|---|
| Conceptual area | Indian Economy |
| Conceptual area | Food Security |
| Body | Role |
|---|---|
| Ministry of Agriculture & Farmers Welfare | Formulates and implements agricultural policies |
| Food Corporation of India (FCI) | Manages food grain procurement, storage, and distribution for food security |
Prelims angle
Prelims angle: Factual recall
Prelims angle: Institutional roles and functions
- Agriculture is a livelihood for over half of India's population.
- Small, fragmented landholdings and monsoon dependence are key challenges.
- India protects sensitive agricultural sectors in trade agreements for food security.
- Opportunities for cooperation in agri-tech, cold chain, water management.
- Biosecurity and phytosanitary standards are crucial for fair trade.
| Year | Framing tags |
|---|---|
| 2023 | Definition-based questions, Conceptual understanding |
| 2021 | Factual recall, Institutional roles and functions |
| 2020 | Multi-statement analysis, Conceptual understanding |
| 2019 | Factual recall, Conceptual understanding |
| 2018 | Multi-statement analysis, Factual recall |
| 2017 | Statement-based questions, Purpose or function of a policy tool |
| 2017 | Multi-statement analysis, Policy measures |
| 2014 | Multi-statement analysis, Conceptual understanding |
Timeline
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Indian Economy
Conceptual area
-
Food Security
Conceptual area
-
Prelims 2014
Multi-statement analysis, Conceptual understanding
-
Prelims 2017
Statement-based questions, Purpose or function of a policy tool
-
Prelims 2017
Multi-statement analysis, Policy measures
-
Prelims 2018
Multi-statement analysis, Factual recall
-
Prelims 2019
Factual recall, Conceptual understanding
-
Prelims 2020
Multi-statement analysis, Conceptual understanding
-
Prelims 2021
Factual recall, Institutional roles and functions
-
Prelims 2023
Definition-based questions, Conceptual understanding
-
India and Australia — bridging the trade and trust barrier
India's approach to agricultural trade is shaped by its unique socio-economic realities, prioritizing farmer livelihoods and food security over complete market liberalization. This necessitates strategic negotiations in FTAs and exploring cooperation avenues beyond tariff concessions, such as technology transfer and infrastructure development.
See also
Past papers
2014–2023 · 8 questions
In the news
India and Australia — bridging the trade and trust barrier
India's approach to agricultural trade is shaped by its unique socio-economic realities, prioritizing farmer livelihoods and food security over complete market liberalization. This necessitates strategic negotiations in FTAs and exploring cooperation avenues beyond tariff concessions, such as technology transfer and infrastructure development.
Try these PYQs
In the context of India’s preparation for Climate-smart Agriculture, consider the following statements:
1. The ‘Climate-Smart Village’ approach in India is a part of a project led by the Climate Change, Agriculture and Food Security (CCAFS), an international research programme.
2. The project of CCAFS is carried out under Consultative Group on International Agricultural Research (CGIAR) headquartered in France.
3. The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in India is one of the CGIAR’s research centres.
Which of the statements given above are correct?
Statement 1 is correct. The Climate-Smart Village (CSV) approach is an initiative under the CCAFS program, which focuses on improving climate resilience in agriculture through research and innovation. CCAFS operates in multiple countries, including India, and works on sustainable farming practices, resource efficiency, and climate adaptation strategies in rural areas. Statement 2 is correct. CCAFS is a global research initiative under the Consultative Group on International Agricultural Research (CGIAR), which is a network of international agricultural research organizations. However, CGIAR’s global headquarters is in Montpellier, France, making the statement factually accurate. Statement 3 is correct. ICRISAT, based in Hyderabad, India, is a major research institute focusing on improving dryland agriculture. It is indeed one of the CGIAR’s 15 global research centers, working on climate resilience, crop improvement, and food security in semi-arid regions.
With reference to organic farming in India, consider the following statements:
1. The National Programme for Organic Production' (NPOP) is operated under the guidelines and directions of the Union Ministry of Rural Development.
2. The Agricultural and Processed Food Products Export Development Authority' (APEDA) functions as the Secretariat for the implementation of NPOP.
3. Sikkim has become India's first fully organic State.
Which of the statements given above is/are correct?
Statement 1 is Incorrect: The National Programme for Organic Production (NPOP) is operated under the guidelines and directions of the Ministry of Agriculture and Farmers Welfare (MoA&FW), not the Ministry of Rural Development. Statement 2 is Correct: The Agricultural and Processed Food Products Export Development Authority (APEDA) does function as the Secretariat for the implementation of NPOP. APEDA plays a crucial role in promoting and certifying organic products in India. Statement 3 is Correct: Sikkim has indeed become India's first fully organic State. This achievement signifies India's efforts to promote sustainable agricultural practices. Therefore, the correct answer is 2 and 3 only.
Which one of the following best describes the concept of 'Small Farmer Large Field'?
* The concept of 'Small Farmer Large Field' is a participatory collective action model that aims to improve the livelihood of small and marginal farmers in India by achieving economies of scale and bargaining power in the supply chain. * It was adapted from the Large Field Model of Vietnam and was piloted to address the key challenges faced by millions of small and marginal farmers in India. The model allows small farmers to benefit from achieving economies of scale by organizing themselves into groups.
In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/ constraints in its wider / greater implementation?
1. There is no National Seeds Policy in place.
2. There is no participation of private sector seed companies in the supply of quality vegetable seeds of vegetables and planting materials of horticultural crops.
3. There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.
Select the correct answer using the code given below.
Statement 1 is incorrect: India has a National Seeds Policy (2002), which provides a framework for quality assurance, seed certification, and private sector participation. Statement 2 is incorrect: The private sector plays a significant role in the production and distribution of seeds, particularly for hybrid and vegetable crops (e.g., Mahyco, Syngenta, Nunhems, etc.). Statement 3 is correct: For crops like pulses, coarse cereals, and oilseeds, which are low-value but high-volume, there is indeed a shortage of certified seeds due to lower profitability and investment. Thus, only statement three is correct.
In India, which of the following can be considered as public investment in agriculture?
1. Fixing Minimum Support Price for agricultural produce of all crops
2. Computerization of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans by the banking system
6. Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
Public investment in agriculture refers to government expenditures aimed at improving the agricultural sector, including infrastructure development, technological improvements, and providing institutional support. Statement 1 is incorrect: Fixing the Minimum Support Price (MSP) is a policy decision, not an investment. While it affects the agricultural sector, it is not a direct public investment in terms of capital expenditure. Statement 2 is correct: The computerization of Primary Agricultural Credit Societies (PACS) is a public investment because it involves government funds directed towards modernizing agricultural credit systems, enhancing efficiency, and accessibility for farmers. Statement 3 is correct: Social Capital development is a public investment in agriculture, as it involves building networks and community-based resources that help farmers improve productivity and access to resources. Statement 4 is incorrect: Free electricity supply is more of a subsidy, not a direct public investment in the form of capital expenditure. Statement 5 is incorrect: Waiver of agricultural loans is a policy measure aimed at alleviating farmer debt but does not qualify as an investment in infrastructure or capital. Statement 6 is correct: The setting up of cold storage facilities by the government is a direct public investment aimed at improving agricultural infrastructure and reducing post-harvest losses. Hence, option C is the correct answer.
Show 3 more PYQs
What is/are the advantage/advantages of implementing the ‘National Agriculture Market’ (NAM) scheme?
1. It is a pan-India electronic trading portal for agricultural commodities.
2. It provides the farmers access to the nationwide market, with prices commensurate with the quality of their produce.
Select the correct answer using the code given below :
E-NAM (National Agriculture Market) is an online trading platform for agriculture produce aiming to help farmers, traders, and buyers with online trading and getting a better price through smooth marketing. Statement 1 is Correct: Pan-India electronic trading portal (Correct) This is a core feature of NAM. It creates a unified online platform where farmers can connect with buyers from across the country, eliminating geographical restrictions and potentially increasing market access. Statement 2 is Correct: Access to nationwide markets and better prices (Correct) NAM allows farmers to see prices prevailing in various mandis (wholesale markets) across the country. This transparency empowers them to choose the market offering the best price for their produce, potentially fetching them higher returns compared to traditional, localised markets. Therefore, the correct answer is 1 and 2 both are correct.Hence, option C is the correct answer.
Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?
* The country's vegetable oil imports for the first six months of the oil year during November 2018 to April 2019 stood at 75,41,689 tonne, up about 3% from 73,18,295 tonne reported in the same period last year. * Vegetable oils account for the highest import in terms of value in the last five years. India relies on imports for 70 percent of its edible oil consumption.
Consider the following statements :
The nation-wide ‘Soil Health Card Scheme’ aims at
1. expanding the cultivable area under irrigation.
2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
3. checking the overuse of fertilizers in farmlands.
Which of the above statements is/are correct?
Out of the listed statements about the Soil Health Card Scheme : Statement 1 is Incorrect: Expanding the cultivable area under irrigation is not a primary objective of the scheme. Statement 2 is Incorrect: Banks don't directly use soil cards to assess loan quantum. Loan approvals depend on various factors like land ownership, crop type, and credit history. Statement 3 is Correct: A key objective of the scheme is to promote the judicious use of fertilisers. By informing farmers about their soil's nutrient status, the scheme encourages them to apply only the required amount of fertilisers, reducing overuse and potential environmental damage. Therefore, the correct answer is 3 only (checking the overuse of fertilisers in farmlands).Hence, option B is the correct answer.