Indian Agriculture During COVID-19: Prospectus and Challenges

Introduction

The agricultural and allied sector carries immense importance for the Indian economy. It contributes nearly one-sixth to the Indian national income and provides employment to nearly 50% of the workforce. It is fundamental for ensuring food security of the nation and also influences the growth of secondary and tertiary sector of the economy through its forward and backward linkages. The performance of agricultural sector greatly influences achievements on many other fronts. For instance, World Development Report 2008 released by World Bank emphasises that growth in agriculture is, on average, at least twice as effective in reducing poverty as growth outside agriculture. Agricultural growth reduces poverty directly, by raising farm incomes, and indirectly, through generating employment and reducing food prices. In other words, a thriving agricultural sector is a boon for most sectors of the Indian economy.

The economic implications of the novel Coronavirus (COVID-19) pandemic have brought the agricultural sector into sharp focus and heightened its responsibility to feed and employ thousands who might have lost livelihoods. At this time when most sectors of the economy are reported to be under significant stress, the agricultural sector continues to be promising and cushioning the economy. The area sown under all major kharif crops is expected to be higher than corresponding period during the last year. Since the agricultural sector continues to be one of the bright spots amidst this pandemic, there is a need of prioritising agricultural sector during this time to ensure speedy economic recovery of the country.

Undoubtedly, the outbreak of the Corona virus is one of the most universal phenomena in human history, the dimensions of which have affected everyone on the planet. It can be argued that today, the concern of all governments around the world is to plan to control this disease and manage its economic consequences. According to the World Health Organization, as of Nov 09, 2020, more than 50,266,033 people worldwide have been infected with the diseaseincluding 1,254,567 deaths, with India accounting for 8,553,657 and the number of deaths from this disease in the country has been 126,611 until that date (WTO, 2020). This has led to one of the most unprecedented government controls on day-to-day operations around the world. Fear of the spread of the virus has left many economic activities in a coma. Estimates show that the shock caused by the disease was far greater than the Great Depression of 2007-2008 and could largely lead to a change in economic thinking, as did the Great Depression of 1928 (Arumugam, Kanagavalli, & Manida, 2020).

The agricultural sector is of special importance in the country's economy due to providing food security and providing a livelihood for a part of the country's population directly and indirectly. Examining the consequences and actively preparing for them is one of the most important ways to reduce anxiety and stress about crises (Odisha, 2020). COVID 19 is a negative event for the economies of most countries in the world, and most of the problems created or predicted in India are similar to those in other parts of the world. However, due to the period of several months since the outbreak of this disease in the world and about two months in India, it is not enough time to make a definite statement about the effects and possible damages of this disease (Jain, Baghla, & A, 2020). Although some assumed that the prevalence of COVID 19 had no effect on the agricultural sector and its producers due to the constant human need for food, which accounts for the bulk of agricultural production, but this crisis has affected the activities of the agricultural sector as well as has affected other economic sectors. The COVID 19 crisis on the agricultural sector of the country, in a situation where this sector is facing major problems and challenges such as lack of investment, low productivity, market inefficiency, and production, increases the severity of the vulnerability of this sector (Rawal, Kumar, Verma, & Pais, 2020).

Production characteristics of most agricultural products have forced the producers of this sector to continue their activities and expenses. Because gardens, farms, and livestock does not have the ability to be abandoned, while the livelihood of farmers is endangered if abandoned (Wani, 2020). To study the real effect of coronavirus on the country agricultural economy, it is necessary to evaluate the data related to supply chains, supply and demand of agricultural products, which itself is affected by such things as energy demand and prices, and the past and present goods of this sector (Ali & Khan, 2020).