The Overdue Agro Policy That Kept Gujarat's Farmers In Limbo

Gujarat's Agro Business Policy, announced in 2016, lapsed in 2021. What followed was a five-year policy vacuum. For farmers, this was a period of prolonged uncertainty

Gujarat, Agro Business Policy, Delhi's Agri Blueprint, Delhi, Agriculture, AI, Drones, AI Adoption

For a state that proudly calls itself India's agriculture powerhouse, a policy limbo consumed Gujarat's agri-business ecosystem for five long years. Gujarat's Agro Business Policy, announced in 2016, lapsed in 2021. What followed was a five-year policy vacuum.

During that period, more than 14 states updated or introduced agriculture policies, investments shifted elsewhere, and Gujarat's agri-business ecosystem waited for a fresh direction.

Within the Secretariat, officials privately attribute the delay to the absence of political urgency and prolonged bureaucratic indecision. Two policy drafts were reportedly rejected due to a lack of inter-departmental coordination before the government finally approved a third version aligned with the Centre's recently announced six-pillar agricultural framework.

While the new policy has been finalised and is in the final phase, experts and farmers' leaders highlight that support for farmers should not end at the policy level, stressing the need for timely agricultural kits and equipment before sowing.

Gujarat Agro Business Policy

The new policy has been finalised under the leadership of Ramesh Chandra Meena, Principal Secretary, Agriculture and Farmers' Welfare Department, and Arun Kumar Solanki, Additional Chief Secretary, Animal Husbandry. According to officials, the proposed Agro Business Policy provides special incentives for women entrepreneurs and members of tribal communities. It also proposes additional interest subsidies, capital assistance, and the establishment of Agro Business Parks.

The new policy, expected shortly, reflects Delhi's priorities rather than creating an entirely Gujarat-specific template. It focuses on productivity, reducing cultivation costs, remunerative prices, diversification, infrastructure, and climate resilience, with greater use of artificial intelligence (AI), drones, satellite data, and digital technologies.

The proposed policy also aims to promote value addition and employment generation in the agriculture sector by providing subsidies to Agro Small and Medium-Sized Enterprises (SMEs). A dedicated Seed Fund will be created for startups, while a Salary Assistance Scheme has also been proposed to generate employment. The policy places significant emphasis on investment incentives, Food Processing Parks, Mega Food Parks, and improved access to international markets.

State Agriculture Minister Jitu Vaghani said that the new policy will promote organic and natural farming. It will also focus on value-added food processing units, cold storage facilities, industrial units, and infrastructure support. According to Vaghani, the policy aims to address challenges related to marketing, changing consumer preferences, international trade, global trade dynamics, drone technology, and AI use.

Bharatiya Kisan Sangh General Secretary R.K. Patel told The Secretariat, "The government is bringing a new policy after a delay of five years, but before announcing it, it should consult farmer leaders and representatives of farmers' organisations regarding its provisions. Many times, the government announces policies without adequately communicating how farmers can benefit from them, resulting in many farmers being deprived of their benefits. The Central government has accorded agriculture the status of an industry, but it has not extended industry-like benefits. This issue also deserves wider discussion."

The Central government has accorded agriculture the status of an industry, but it has not extended industry-like benefits

- R.K. Patel, General Secretary, Bharatiya Kisan Sangh

Echoing the views, Kisan Congress leader Pal Ambaliya also emphasised the need to hold consultations with farmers. "Whenever policies or schemes are prepared for farmers, they are designed more to benefit industries than farmers themselves. Subsidy schemes of both the Centre and the state are often structured keeping companies' interests in mind. Ironically, the government consults industries while framing industrial policies but does not seek the views of farmer leaders while formulating agricultural policies," Ambaliya told The Secretariat.

"Just as GIDC [Gujarat Industrial Development Corporation] estates are developed for small industries, the government should establish dedicated Agriculture GIDCs to support farmers. Similarly, any farmer launching an agriculture startup should receive mentorship along with comprehensive financial assistance," Ambaliya pointed out.

Any farmer launching an agriculture startup should receive mentorship along with comprehensive financial assistance

Pal Ambaliya, Kisan Congress leader

States including Punjab, Karnataka, Kerala, Odisha, Andhra Pradesh, Telangana, Rajasthan, Madhya Pradesh, Chhattisgarh, Bihar, and Uttar Pradesh are already implementing various agriculture policies. Assam has prepared a draft Agriculture Policy, while Sikkim has adopted an Organic Agriculture Policy.

The Central government introduced National Agriculture Policies in 2000 and 2007.

Last year, however, it unveiled a new agricultural framework based on six pillars: productivity, reduction in cultivation costs, remunerative prices, agricultural diversification, infrastructure, and climate resilience.

The framework also recommends greater use of digital tools, drones, satellite data, and AI.

Income-Centric Agricultural Strategy

Recently, S. Mahendra Dev, Chairman of the Prime Minister's Economic Advisory Council, said that India must shift from a production-centric approach to an income-centric agricultural strategy, placing greater emphasis on crop diversification, market reforms, agri-processing, and technology.

Agriculture, livestock, and fisheries currently contribute around 17% of India's GDP, while providing employment to 43% of the workforce. As India signs more free trade agreements (FTAs), he stressed that the country must negotiate greater market access for agricultural products.

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