Agriculture has proven to be the only bright spot for Indian economy during both first and second wave of Covid-19. Under various sub-headings the effect of covid-19 on agriculture has been studied.

1. IMPACT OF COVID-19 ON
INDIAN AGRICULTURE
Speaker:- Anwesha Dey
I.D. No. : PE-19049
Chairman:- Prof. H.P. Singh
DEPARTMENT OF AGRICULTURAL ECONOMICS
INSTITUTE OF AGRICULTURAL SCIENCES
BANARAS HINDU UNIVERSITY
VARANASI – 221005

2. BACKGROUND
Spread of novel Coronavirus (COVID-19)
pandemic across the globe
Imposition of nation-wide lockdown from 25
March 2020 - 31 May 2020
Unlock was done in 6 phases from 1st June
2020 - 30 November 2020
Agriculture emerged as shock absorbing
sector

3. 7.0
6.1
4.2
-7.7
11
2017-18 2018-19 2019-20* 2021-22#
Growth rate of GDP at constant prices in %
Source: Economic Survey 2020-21
*Provisional Estimates **Ist Advance Estimates #Projected
INDIAN ECONOMY
2020-21**

4. Agriculture & allied Industry Services
2018-19* 2019-20** 2020-21#
Sector-Wise Growth
Growth rate of GVA at basic prices in %
2.4
4.9
7.7
4
0.9
5.5
3.4
-9.6
-8.8
Source: Economic Survey 2020-21
* Revised Estimates **Provisional Estimates #Ist Advance Estimates

5. 2017-18* 2018-19# 2019-20** 2020-21***
2016-17
2015-16
2014-15
Share of GVA of Agriculture & Allied Sector in Total
Economy (at current prices in %)
Source: National Statistical Office (NSO) M/o Statistics & PI
***As per Second Advance Estimates of National Income, 2020-21 released on 26th February 2021
* Third Revised Estimates,
# Second Revised Estimate,
**As per the First Revised Estimates for 2019-20 released on 29th January, 2021
18.2
17.7
18.3
18
17.6
18.4
20.2

6. 1. Impact on
Agricultural
Production

7. 2017-18 2018-19 2019-20 2020-21#
Foodgrains Production
(in million tonnes)
285 285.21
297.5
303.34
Source: Directorate of Economics & Statistics, Ministry of Agriculture & Farmers' Welfare
#2nd Advance Estimates

8. 2017-18 2018-19 2019-20 2020-21#
Pulses
24.4
25.4
23.0
22.1
2017-18 2018-19 2019-20 2020-21#
Rice
2017-18 2018-19 2019-20 2020-21#
Wheat
112.8
116.5
118.9
120.3
2017-18 2018-19 2019-20 2020-21#
Sugarcane
99.9
103.6
107.9
109.2
379.9
405.4
370.5
397.7
Production (in million tonnes)
Production (in million tonnes)
Production (in million tonnes) Production (in million tonnes)

9. 2017-18 2018-19 2019-20 2020-21#
Oilseeds
37.3
33.2
31.52
31.5
2017-18 2018-19 2019-20 2020-21#
Milk
2017-18 2018-19 2019-20 2020-21#
Vegetables
2017-18 2018-19 2019-20 2020-21#
Fruits
176.3
187.7
198
208
184.4
183.2
188.9
193.6
97.4
98
102.3
103.2
Production (in million tonnes)
Production (in million tonnes)
Production (in million tonnes)
Production (in metric tonnes)

10. 2. Impact on
Agricultural
Exports

11. 2017-18 2018-19 2019-20 2020-21
Total Agricultural & Allied Commodity
Exports (in million tonnes)
Data in parenthesis indicates the exports in USD billion
Source: DGCIS Annual Export
22.3
(38.43)
23.1
(38.74)
19.2
(35.16)
29.1
(41.25)

12. 2017-18 2018-19 2019-20 2020-21*
CEREALS
2017-18 2018-19 2019-20 2020-21*
FRESH FRUITS & VEGETABLES
PROCESSED FRUITS
AND VEGETABLES
2017-18 2018-19 2019-20 2020-21*
13.89 13.51
10.21
16.85
2.9
3.6
2.65 2.47
1.05
1.19
1.12
1.1
Export (in million tonnes)
* till January, 2021
Export (in million tonnes)
* till January, 2021
Export (in million tonnes)
* till January, 2021
SPICES
2017-18 2018-19 2019-20 2020-21
1.02 1.1
1.2
1.5
Export (in million tonnes)

13. FLORICULTURE
2017-18 2018-19 2019-20 2020-21*
ANIMAL PRODUCTS
2017-18 2018-19 2019-20 2020-21*
OTHER PROCESSED FOODS
2017-18 2018-19 2019-20 2020-21*
0.35 0.36
0.31
0.21
1.94 2
1.64
1.2
Export (in million tonnes)
* till January, 2021
Export (in million tonnes)
* till January, 2021
Export (in million tonnes)
* till January, 2021
2.47
2.74
2.5
2.56

14. 3. Impact on
Market Arrivals

15. April May June July August
2019 2020
%
Change
2019 2020
%
Change
2019 2020
%
Change
2019 2020
%
Change
2019 2020
%
Change
Paddy(Dhan)
(Common)
21,387.6 16,193.8 -24.3 8,963.4 16,140.8 80.1 37,128.1 40,357.5 8.7 26,176.8 15,192.8 -41.9 21,921.5 1,568.3 -92.8
Wheat 51,354.6 5,338.7 -89.6 6,47,853 2,04,550 -68.4 79,663 99,351.6 24.7 48,103.5 22,310.1 -53.6 26,462.8 1,261.1 -95.2
Maize 9,209.2 2,685.4 -70.8 2,693.83 4,877.6 81 4,307.9 16,931.1 293 9,806.2 9,654.7 -1.54 5,266.5 975.88 -81.4
Bengal
Gram(Gram)
(Whole)
18,236 2,161.8 -88.1 17,921.3 4,673.8 -73.9 12,593.6 13,815.9 9.7 6882.9 4,550.4 -33.9 3,387.9 365.8 -89.2
Market Arrivals for Major Commodities
Source: AGMARKNET (http://www.agmarknet.gov.in/)
Market arrivals (in tonnes)

16. April May June July August
2019 2020
%
Change
2019 2020
%
Change
2019 2020
%
Change
2019 2020
%
Change
2019 2020
%
Change
Mustard 29,408 572.5 -98 20,335.3 7,768.77 -61.8 13,800.4 6,408.5 -53.5 5878.49 4,593.85 -21.8 2,991.69 957.13 -68
Onion 33,319.4 14,274.8 -57.1 21,073.7 6,158.51 -70.7 39,604 32,412.2 -18.2 39742.1 26,300.2 -33.8 24,331.6 10,565.8 -56.5
Potato 36,104.2 14,366.8 -60.2 20,421.3 10,601 -48.1 25,238.9 15,247 -39.6 26417.2 12,225.1 -53.7 3,2843.9 6,290.5 -80.8
Tomato 7,248.8 3,004.7 -58.5 6,014.13 4,401.44 -26.8 6,880.8 8,543.3 24.2 7195.04 10,272.3 42.7 9,432.2 5,188.4 -45
Market Arrivals for Major Commodities
Source: AGMARKNET (http://www.agmarknet.gov.in/)
Market arrivals (in tonnes)

17. 4. Impact on
Returns

18. 50
50
83
50
53 58
50
64
50 50 50 50 50 50
0
10
20
30
40
50
60
70
80
90
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Cost* MSP Return over cost (%)
Cost*
and
MSP
(Rs.
per
quintal)
Return
over
Cost
(in
%)
*Cost = Projected cost for Kharif marketing season 2020-21
Source: Ministry of Agriculture & Farmers Welfare
Cost, MSP and Returns of Kharif crops for the year 2020-21

19. Cost, MSP and Returns of Rabi crops for the year 2021-22
106
65
78
78
93
50
0
20
40
60
80
100
120
0
1000
2000
3000
4000
5000
6000
Wheat Barley Gram Lentil(Masur) Rapeseed &
Mustard
Safflower
Cost* MSP Return over cost (%)
Cost*
and
MSP
(Rs.
per
quintal)
Return
over
Cost
(in
%)
*Cost = Projected cost for Rabi marketing season 2021-22
Source: Ministry of Agriculture & Farmers Welfare

20. 5. Impact on
Inflation

21. 100
120
140
160
180
200
220
240
260
280
300
Cereals Pulses Vegetables Fruits Milk Egg, meat, fish Oilseeds
Trends in the wholesale price index of major commodity groups
WPI
Source: Office of Economic Adviser, Ministry of Commerce & Industry
WPI
2011-12
=100

22. -30
-20
-10
0
10
20
30
40
50
60
WPI Inflation
Cereals Pulses Vegetables Fruits Milk Egg, meat, fish Oilseeds
Source: Office of Economic Adviser, Ministry of Commerce & Industry

23. 6. Impact on
Rural
Unemployment

24. 0
5
10
15
20
25
30
Urban Rural India
Unemployment
Rate
(%)
Source: Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE)
Unemployment in India
Monthly unemployment trend

25. CONCLUSION
As per the advance estimates by NSO, India’s GDP is estimated to grow by (-)
7.7% in FY21 and 11.0% in FY2021-22
Agriculture cushioned the shock of the COVID-19 pandemic on the Indian economy
in FY21 with a growth of 3.4%
Production of major foodgrains, oilseeds, vegetables, fruits and milk enhanced in
FY2020-21.
Total agricultural exports increased in FY2020-21, with major increase in cereals
and slight decrease in floriculture and animal products.
Due to lockdown the transport facilities were disrupted leading to reduction in
quantity of market arrivals of major commodities
The rural unemployment rate rose immensely (23%) during the lockdown months.
WPI Inflation was highest in vegetables followed by pulses.

26. Policy Implications by Govt.
 The first instalment of the PM-Kisan Yojana payment to farmers, i.e., Rs.
2,000 was paid up front to farmers, benefitting over 8.7 crore Indian
farmers.
 Government announced the COVID-19 stimulus package worth Rs. 1.63
lakh crore for agriculture and allied sectors aimed at strengthening
infrastructure, logistics and capacity building.
To protect the growers of fruits and vegetables from making distress sale
due to the lockdown and reduce the post-harvest losses the government
extended the Operation Greens Scheme to include all fruits and vegetables
(TOTAL) beyond tomato, onions, and potatoes (TOP) announced earlier.

27. To ensure uninterrupted exports, APEDA, MPEDA and the commodity
boards provided blanket extension of validity of various recognitions/
accreditations
To facilitate movement of agriculture & horticulture produce through both
‘primary' and 'secondary' transportation, the government launched ‘Kisan
Rath’ mobile app. The app helped farmers hire trucks for hassle-free
transportation of agri-produce to mandis during the Covid-19 lockdown.
To ease sale of the produce, govt. connected the farmers with bigger
agricultural markets through e-NAM; 2 lakh farmers were registered
from January, 2020 to July, 2020.

28. THANK YOU