Despite facing challenges from unpredictable weather conditions, India’s agricultural sector has proven resilient. The government remains optimistic about achieving a plentiful food grain production while actively working to control food inflation in anticipation of the upcoming general elections in 2024.
Throughout the year, the country experienced extreme weather events, ranging from floods to droughts, leading to concerns about foodgrain production and creating an artificial supply scare. In response, the government implemented various pre-emptive measures, including export restrictions on certain commodities. Additionally, subsidies were provided for selected commodities to enhance domestic supply and mitigate sharp spikes in retail prices, such as those of wheat, rice, edible oils, pulses, tomatoes, and onions.
Efforts to control food prices are ongoing, with a particular focus on monitoring the prospects of winter crops, especially wheat and pulses, which are currently being sown and will be ready for harvest around the time of the 2024 general elections in April-May.
Throughout the year, food inflation remained elevated, reaching 8.7% in November after touching a low of 2.96% in May. Farmers cultivating not only wheat and paddy but also horticultural crops like tomatoes and onions faced weather-induced challenges, leading to supply crunches and subsequent price increases.
The government took proactive measures, including procuring tomatoes at subsidised rates and distributing buffer onions at subsidised rates in cities where prices had surged. Export bans were also imposed on onions until March of the following year to enhance domestic availability.
Balancing the interests of both farmers and consumers, the government continued its support for the farming community through schemes such as PM-KISAN, Pradhan Mantri Fasal Bima Yojana (PMFBY), and Kisan Credit Card. Additionally, the free distribution of ration to 81 crore poor individuals under the public distribution system was extended for the next five years.
