Agriculture: growth, challenges, policy

Agriculture still employs a large share of Indians and feeds the country, but its growth is slower and more volatile than other sectors, held back by small holdings, monsoon dependence, low productivity and weak market linkages. Policy has combined support prices, input subsidies, irrigation investment, credit and food distribution. Worked example: a farmer producing 100 quintals at a support price of 2000 per quintal earns 200,000; if input costs are 120,000, net income is 80,000 — and a 10% fall in yield (to 90 quintals) cuts net income to 60,000, a 25% fall, showing how yield risk hits income harder than output.