"Agriculture is currently unviable, and its share of the country's GDP is declining by 1% per year, despite the fact that a large proportion of the population is still dependent on it for a living. In India, we frequently compare ourselves to China," Debroy said.
"By and large, the input-output, marketing and distribution side of the agriculture sector is controlled by the government," he said, adding "that reform agenda for agriculture is not only been pending since 1991, it is pending even today as we speak at this point". "Controls can be found in technology, seeds, marketing channels, investments, and distribution channel links, among other things. Those controls are still in place... There is fundamentally a political economy of resistance," he stated. Debroy believes that the political economy of resistance stems from the belief that Indian farmers do not know what is best for them and thus must be protected.
"Farmers, in my opinion, do not require such protection. Yes, farming is unprofitable because input costs exceed output costs. There are insurance concerns. We still don't have adequate insurance. The Indian farmer does not require protection," he stated. What Indian farmers need to be protected is from unwarranted state intervention, he said, adding "If we free Indian farmers from that, I am sure Indian agriculture can be transformed," he noted.
Debroy also stated that while industrial liberalization has benefited consumers, agricultural liberalization is opposed when export-import controls are imposed to keep price rises in check. He suggested that farm employment opportunities be created, as well as a shift toward commercialization and diversification. He also emphasized the importance of having modern land records in order to implement farm reforms.
"...there are states in India where the last cadastral maps were created in the 1910s or 1920s. If this is the case, I'm not even talking about the land reforms that will follow. I'm only concerned with the tracking. How can we reform agriculture until we have modern land records? "He stated. According to the seventh schedule of the Constitution, land and the majority of agriculture are also under the purview of states.
Debroy stated that the minimum support price (MSP) is now equivalent to a procurement price. The presence of a procurement policy distorts choice. Speaking on the occasion, APEDA Chairman M Angamuthu stated that India aims to rank seventh in the global Agri-export market by 2025, capitalizing on its wide product range and price competitiveness.
"In 2021-22, our farm exports will exceed $50 billion. We were ranked 12th in the global market four years ago and have now risen to 8th place. We will be ranked seventh in 2025 "He stated. Several steps have been taken to increase exports, including the promotion of GI (geographical indications) tagged products, as well as vegan and organic produce, he said.
