Impact of El Niño on Indian Agriculture and Economy
Agriculture
- PYQs8
- Articles1
Background
El Niño directly impacts India's monsoon-dependent agriculture, food security, rural livelihoods, and has significant ripple effects on inflation, fiscal policy (subsidies), and overall economic stability.
El Niño is a climate pattern associated with the warming of the ocean surface temperature in the central and eastern tropical Pacific Ocean, which significantly influences global weather patterns, including the Indian monsoon, often leading to deficient rainfall and impacting agricultural output.
Facts & tables
- Rainfall Shortfall
- India Meteorological Department estimated 10% shortfall in 2026-27 due to El Niño.
- Crop Impact
- Potential risk to kharif and rabi crops.
- Associated Issues
- Fertilizer shortages, requiring reconsideration of crop-specific import/export policies.
- Economic Impact
- Affects agricultural output, contributing to inflation and impacting overall GDP growth.
| Type | Reference |
|---|---|
| Conceptual area | Biogeography & Ecosystems |
| Conceptual area | Climate Change & Conventions |
| Body | Role |
|---|---|
| India Meteorological Department (IMD) | Monitors weather patterns, forecasts monsoon and el niño effects |
| Ministry of Agriculture & Farmers Welfare | Formulates policies to mitigate agricultural risks, manages crop-specific policies |
| Reserve Bank of India | Monitors inflation, considers agricultural output in monetary policy decisions |
Prelims angle
Prelims angle: Policy measures
Prelims angle: Multi-statement analysis
- El Niño leads to warming of Pacific Ocean surface, affecting global weather.
- Often causes deficient Indian monsoon rainfall.
- Directly impacts kharif and rabi crop yields.
- Can exacerbate food and fertilizer shortages.
- Contributes to inflation and affects GDP growth.
| Year | Framing tags |
|---|---|
| 2026 | Policy measures, Multi-statement analysis |
| 2021 | Factual recall, Institutional roles and functions |
| 2020 | Conceptual understanding, Multi-statement analysis |
| 2020 | Multi-statement analysis, Conceptual understanding |
| 2019 | Conceptual understanding, Institutional roles and functions |
| 2017 | Statement-based questions, Purpose or function of a policy tool |
| 2016 | Multi-statement analysis, Policy measures |
| 2014 | Multi-statement analysis, Conceptual understanding |
Timeline
-
Biogeography & Ecosystems
Conceptual area
-
Climate Change & Conventions
Conceptual area
-
Prelims 2014
Multi-statement analysis, Conceptual understanding
-
Prelims 2016
Multi-statement analysis, Policy measures
-
Prelims 2017
Statement-based questions, Purpose or function of a policy tool
-
Prelims 2019
Conceptual understanding, Institutional roles and functions
-
Prelims 2020
Conceptual understanding, Multi-statement analysis
-
Prelims 2020
Multi-statement analysis, Conceptual understanding
-
Prelims 2021
Factual recall, Institutional roles and functions
-
Prelims 2026
Policy measures, Multi-statement analysis
-
India’s economic prospects after the West Asian crisis’
El Niño causes deficient rainfall in India, threatening kharif and rabi crops, leading to potential food and fertilizer shortages, and impacting inflation and GDP growth.
See also
No related topics linked yet.
Past papers
2014–2026 · 8 questions
In the news
India’s economic prospects after the West Asian crisis’
El Niño causes deficient rainfall in India, threatening kharif and rabi crops, leading to potential food and fertilizer shortages, and impacting inflation and GDP growth.
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.
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.
The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus
The correct answer is (C) procurement incidentals and distribution cost. Here's a breakdown of the economic cost of food grains to the Food Corporation of India (FCI): Minimum Support Price (MSP) and bonus (if any): This is the price paid by the FCI to farmers to procure food grains at a pre-determined level. It serves as a safety net for farmers and ensures some income stability. Procurement incidentals: These are the additional costs incurred by the FCI during the procurement process. They include expenses like - Commission to agents or societies involved in procurement - Bagging materials - Labor charges for procurement activities - Transportation from collection centers to storage depots Distribution cost: This refers to the expenses incurred by the FCI to distribute the procured food grains. It includes - Transportation costs from storage depots to fair price shops or other distribution channels - Handling and storage charges at fair price shops - Losses during storage and transportation
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.
Which among the following is/are the objective(s) of the Rainfed Area Development (RAD) initiative under the National Mission for Sustainable Agriculture (NMSA)?
1. Encouraging monoculture in rainfed areas
2. Increasing rice cultivation in irrigated regions
3. Enhancing productivity and minimising climatic risks through Integrated Farming Systems (IFS)
Select the answer using the code given below:
Statement 1 is Incorrect: The Rainfed Area Development (RAD) scheme explicitly promotes Integrated Farming Systems (IFS) rather than monoculture. It integrates multi-cropping and rotational cropping with allied activities like horticulture, livestock, fishery, and agro-forestry to diversify income and build resilience. Official guidelines actively discourage single-cropping (monoculture) systems. Statement 2 is Incorrect: As the name implies, RAD targets rainfed areas (regions lacking assured irrigation) to build resilience against climate variability. It does not focus on expanding water-intensive crops like rice in already irrigated regions. Statement 3 is Correct: The core objective of RAD is to make rainfed agriculture more productive, sustainable, remunerative, and climate-resilient. By diversifying income sources through Integrated Farming Systems (IFS), RAD aims to minimize the risks associated with climatic variability (such as droughts, heat stress, or floods) and crop failure, ensuring stable livelihoods for farmers. Therefore, option D is the correct answer.
Show 3 more PYQs
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.
With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct?
1. This initiative aims to demonstrate the improved production and post-harvest technologies and to demonstrate value addition techniques, in an integrated manner, with a cluster approach.
2. Poor, small, marginal and tribal farmers have a larger stake in this scheme.
3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and micro-irrigation equipment.
Select the correct answer using the code given below.
Statement 1 is correct. The Initiative for Nutritional Security through Intensive Millets Promotion aims to demonstrate improved production and post-harvest technologies in an integrated manner with a cluster approach. Statement 2 is also correct. Millets are mainly grown in regions of low annual rainfall and poor arid soil. It is inadequate, small, marginal and tribal farmers, who cannot afford costly irrigation practices, depend on the cultivation of millets. Hence these farmers benefit from the scheme and have a larger stake in this scheme. Statement 3 is not correct. There is no such provision to encourage commercial crop farmers to shift to millet cultivation.
Which of the following factors/policies were affecting the price of rice in India in the recent past?
1. Minimum Support Price
2. Government’s trading
3. Government’s stockpiling
4. Consumer subsidies
Select the correct answer using the code given below:
Minimum Support Price (MSP): The government sets an MSP to ensure a minimum income for farmers. If the market price falls below the MSP, the government procures rice from farmers at the MSP. This can lead to higher rice prices for consumers if the government releases these stocks slowly or not at all. Government's trading: Government agencies like the Food Corporation of India (FCI) procure and sell rice in the market. Large-scale procurement by the government can affect market availability and potentially drive up prices. Government's stockpiling: The government maintains buffer stocks of rice for food security purposes. If these stocks are depleted due to various reasons, it can lead to a shortage and price hikes. Consumer subsidies: The government provides subsidized rice to certain sections of the population through schemes like PDS (Public Distribution System). This can influence overall demand and market dynamics. If the subsidies are substantial, it can put upward pressure on prices. Therefore, all these factors can play a role in influencing the price of rice in India.
Hence, option D is the correct answer.