Sample Essay – Making Agriculture Economically Viable: RBI Grade B 2023


Model Essay: Making Agriculture Economically Viable: Ensuring Sustainable Growth and Livelihoods


Agriculture plays a vital role in the economic development of a nation by providing food security, employment, and raw materials for industries. However, the sector faces numerous challenges such as low productivity, inadequate infrastructure, and market volatility. This essay explores the importance of making agriculture economically viable and outlines key measures to enhance productivity, income, and sustainability in the agricultural sector.


Enhancing Productivity:

Improving agricultural productivity is crucial for making the sector economically viable. This can be achieved through the adoption of modern farming techniques, use of high-quality seeds, efficient irrigation systems, and mechanization. Providing farmers with access to advanced technologies, training, and extension services helps enhance their knowledge and skills. Moreover, investment in research and development for crop diversification, pest control, and soil health management contributes to increased productivity and profitability.

Infrastructure Development:

Adequate infrastructure is essential for the economic viability of agriculture. The development of irrigation facilities, rural roads, cold storage, and warehousing facilities reduces post-harvest losses, improves market connectivity, and ensures timely transportation of agricultural produce. Access to reliable electricity, internet connectivity, and digital platforms facilitates better access to market information, e-commerce, and financial services, empowering farmers and enabling them to fetch better prices for their produce.

Access to Credit and Insurance:

Access to credit and insurance is crucial for farmers to undertake productive and risk-bearing activities. Financial institutions should provide affordable and timely credit to farmers, especially smallholders and marginalized farmers, to invest in improved farming practices, modern equipment, and inputs. Additionally, crop insurance schemes protect farmers from the uncertainties of weather-related risks and market fluctuations, ensuring stability in their income and encouraging long-term investments.

Market Reforms:

Efficient and transparent agricultural markets are vital for ensuring fair prices and reducing income volatility. Governments should promote the establishment of agricultural marketing infrastructure such as market yards, electronic auction platforms, and farmer producer organizations (FPOs). These initiatives enable farmers to directly engage with buyers, eliminate middlemen, and negotiate better prices. Strengthening value chains, promoting contract farming, and encouraging agro-processing industries also contribute to increased value addition and higher returns for farmers.

Sustainable Agriculture Practices:

Promoting sustainable agriculture practices is essential for long-term economic viability. Governments should encourage the adoption of organic farming, agroforestry, and conservation agriculture to ensure environmental sustainability and enhance soil health. Furthermore, promoting water-efficient irrigation techniques, renewable energy use, and climate-smart agricultural practices helps mitigate the impact of climate change and build resilience in the agricultural sector.


Making agriculture economically viable is crucial for ensuring sustainable growth, food security, and rural livelihoods. By focusing on enhancing productivity, developing infrastructure, providing access to credit and insurance, implementing market reforms, and promoting sustainable agriculture practices, governments can create an enabling environment for farmers to thrive. Holistic policies, coupled with timely investments and stakeholder participation, are essential to unlock the full potential of agriculture and pave the way for a prosperous and resilient agricultural sector.