More Reform than Relief: Indian Agriculture and the Pandemic
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More Reform than Relief: Indian Agriculture and the Pandemic Sudha Narayanan1 · Shree Saha1
© Indian Society of Labour Economics 2020
A series of national lockdowns beginning 24 March 2020 until 31 May 2020 has been the main response by the Government of India to contain the spread of COVID-19. Announced just a few hours before it was implemented, the weeks that followed saw a seismic collapse of livelihoods and the economy. Amidst the economic crisis that ensued, narratives in the popular media and government announcements seemed to convey a sense that agriculture has been resilient and that the sector offered a ray of light and a beacon of hope (Tiwari 2020; Sharma 2020; Pandey 2020). As evidence, government spokespersons and media commentators have highlighted that the area sown increased 49.9 lakh hectares to 67.25 lakh hectares as of May 2020, that horticulture production has increased to a record 320 million tonnes this year and foodgrain production reached a robust 295 million tonnes, all signalling that agriculture had come through unscathed. Estimates released in April 2020 put growth rate in agricultural GDP at 3.1% in Q4 (2019–2020); this figure does stand out relative to the poor performance of other sectors that typically spearhead growth in India and has served as the basis for a widespread perception that agriculture would lead India out of the economic shock. Indeed, Indian agriculture has been somewhat resilient and less affected by the lockdown, relative to manufacturing, for instance. The timing of the lockdown was fortuitous; in many cases, harvests were either complete or would not begin until well into the lockdown period. With just one crop per year during the monsoon, a segment of farmers in rain-fed regions remained unexposed to the consequences of the lockdown for the agri-food sector. Preparations for the following season too would not commence for weeks after the lockdown, allowing time for various actors in the agri-food chain to navigate the lockdown. Further, large-scale factory farms, big processors, traders and retailers that dominate, for example, agriculture and This is part of ongoing work assessing the impacts of COVID-19-related lockdowns on Indian agriculture. Sudha Narayanan is an Associate Professor, and Shree Saha is a Research Associate at the Indira Gandhi Institute of Development Research (IGIDR). * Sudha Narayanan [email protected] 1
Indira Gandhi Institute of Development Studies (IGIDR), Mumbai, India
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The Indian Journal of Labour Economics
supply chains in the USA, are limited in Indian agriculture and food processing continues to be diverse, with most segments dominated by small producers and processors. For example, an estimated 85% of all farmers are small and marginal farmers, operating less than 2 ha. Agro-based industry too comprises a mix of large-scale and Micro, Small and Medium Enterprises (MSMEs). As for food retail industry, estimates suggest that 90% continues to be ‘informal’ food retail (kirana stores, street vendor
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