Importance of Agriculture in the National Economy
Agriculture is a crucial pillar of the national economy, contributing to food security, employment, and exports. It plays a significant role in India’s GDP and supports millions of livelihoods.
This article summarizes India’s global ranking in crop production, updates on MSPs for 2024–25, and key challenges faced by the agricultural sector.
India’s Role in Global Agricultural Production
Major Crop Rankings by Country
| Crop | 1st | 2nd | 3rd |
|---|---|---|---|
| Paddy (Rice) | China | India | Indonesia |
| Wheat | China | India | Russia |
| Maize | USA | China | Brazil |
| Pulses | India | Myanmar | Canada |
| Sugarcane | Brazil | India | China |
| Groundnut | China | India | Nigeria |
| Tobacco | China | Brazil | India |
Horticulture Crops: A Growing Sector
- Fruits: India is the second largest producer globally. Major crops: Mango, Banana, Papaya.
- Vegetables: Also ranked second globally. Major crops: Potato, Onion, Tomato.
- Total Horticulture: India ranks second globally in overall output.
Minimum Support Price (MSP) and FRP – 2024–25 / 2025–26
| Crop | Price (INR/quintal) | Season |
|---|---|---|
| Paddy (Common) | ₹2,369 Latest | Kharif 2025-26 |
| Wheat | ₹2,275 Latest | Rabi 2024-25 |
| Maize | ₹2,400 Latest | Kharif 2025-26 |
| Gram | ₹5,440 | Rabi 2023-24* |
| Tur (Arhar) | ₹8,000 Latest | Kharif 2025-26 |
| Groundnut | ₹7,263 Latest | Kharif 2025-26 |
| Cotton (Medium Staple) | ₹7,710 Latest | Kharif 2025-26 |
| Soybean (Yellow) | ₹5,328 Latest | Kharif 2025-26 |
| Sugarcane (FRP) | ₹340 Latest | 2024-25 |
| Sugarcane (FRP) | ₹355 Latest | 2025-26 |
*Note: Rabi MSPs are announced before sowing (Oct–Nov), and apply to the next marketing year.
Challenges in Indian Agriculture
- Climate change: Irregular monsoons, floods, droughts.
- Low productivity: Below global averages in key crops.
- Market volatility: Price crashes post-harvest.
- Infrastructure gaps: Poor storage and logistics.
- Soil & water issues: Salinity, nutrient loss, groundwater depletion.
- Finance: Limited access to credit for small/marginal farmers.
Note: These challenges can be overcome with sustainable practices, modern infrastructure, and strong policy support.
References
- Directorate of Economics and Statistics, Ministry of Agriculture
- Press Information Bureau (PIB), Government of India
- Food and Agriculture Organization (FAO)
