Productivity Gap and Structural Constraints in Farming

At the IMC Agriculture Conclave 2026 organised by the IMC Agriculture & Food Processing Committee under the theme “Sustainability & Climate Tech for Atmanirbharta,” Dr Sudhir Kumar Goel, IAS (Retd.) and former Additional Chief Secretary (Agriculture and Marketing), Government of Maharashtra, highlighted a deep structural imbalance in India’s farm economy. He noted that agriculture employs nearly 46 per cent of the workforce but contributes only 18 per cent to GDP, with a majority of farmers operating as marginal cultivators earning less than half the national per capita income. He stressed that limited access to capital and technology continues to restrict their ability to adopt modern farming systems.

Collectivisation as a Pathway to Agricultural Modernisation

Dr Goel emphasised that the future of reform lies not in land consolidation but in collectivisation of farmers. By pooling resources, smallholders could improve bargaining power and access technologies such as IoT and artificial intelligence. He argued that such cooperative structures are essential to raising productivity and enabling marginal farmers to participate in technology-driven agriculture.

Climate Stress, Imports, and Food System Vulnerabilities

Highlighting broader systemic risks, IMC Chamber of Commerce and Industry President Sunita Ramnathkar said agriculture remains the backbone of the economy but faces increasing pressure from climate change, resource depletion, and volatile markets. She warned that rising dependence on imported food commodities has made the need for climate-smart and sustainable agricultural solutions more urgent than ever.

Geopolitics and Fertiliser Supply Risks

Chairman of the IMC Agriculture and Food Processing Committee, Aashay Doshi, pointed to geopolitical instability in West Asia as a major threat to India’s fertiliser supply chain. He noted that disruptions in the region could lead to shortages, potentially undermining food security and reversing progress towards nutrition security by shifting focus back to basic food availability rather than dietary quality.

Import Dependence Across Fertiliser, Edible Oils, and Pulses

Dr Goel also underlined India’s continued dependence on imports for critical agricultural inputs and food products. He stated that India consumes more than 60 million tonnes of chemical fertilisers annually, with nearly half dependent on imports, while domestic production relies heavily on uninterrupted LNG supplies. He further noted that India imports nearly $18 billion worth of edible oils annually to meet over 60 per cent of demand, amounting to around 16 million tonnes each year. In pulses, the country remains dependent on imports for roughly 20 per cent of consumption, translating to five to seven million tonnes annually sourced from countries including Canada and Mozambique.

Towards Climate-Smart and Self-Reliant Agriculture

Ramnathkar concluded that the vision of Atmanirbharta in agriculture extends beyond productivity gains. It requires building systems that are environmentally sustainable, technologically advanced, and economically resilient for farmers across the value chain, particularly in the face of climate uncertainty and global supply disruptions.