New index to check ease of doing agri-business

Prelims level : Particulars of the Ease of Doing Agri-Business Index Mains level : GS3: Agriculture | Issues related to direct and indirect farm subsidies and minimum support prices
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Why in news?

  • The Centre expects to roll out a new Ease of Doing Agri-Business Index early next year.


  • It will rank the States on the basis of such reforms, as well as their investment in agriculture, increased productivity, reduction of input costs, and risk mitigation measures.
  • The proposed index will focus on reforms, with marketing reforms (25%) and governance and land reforms (20%) carrying almost half of the weight of the parameters in its scoring system.
  • The Agri Ministry will consider rewarding the higher performing States both in absolute and incremental terms by linking the performance with allocation from flexi funds made available in various flagship.


  • The parameters are process-oriented, and are meant to evolve as and when new reforms or initiatives are proposed.
  • Another major parameter which States will be rated on is their success in reducing the cost of farm inputs (20%) by distributing soil health cards and encouraging organic farming and micro-irrigation.
  • Risk mitigation measures such as crop and livestock insurance carry a 15% weightage, while increased productivity and investment in agriculture carry a 10% weight each.
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