India, Feb. 6 -- Indian agriculture, a sector that supports half the workforce of the country, contributes barely one fifth of its GDP, yet it remains one of the most neglected and low on fiscal priority. The reasons are not difficult to find. The yield per hectare remains low, the input costs have only increased, while the prices of the produce remain abysmally low, sometimes not even enough to cover the input costs and the labour costs.

Though farm output growth has recovered modestly in recent years, with production growing over 4 per cent and food inflation remaining relatively low, farm distress has only grown. Barring a few states like Punjab and Haryana, agriculture in the country remains at a subsistence level.

At its core, Indi...