Agriculture Crisis in India – Urgent Solutions Needed

The agriculture sector in India is facing a severe crisis. A recent interim report from a high-level committee appointed by the Supreme Court marks alarming conditions for farmers. Many farmers earn as little as Rs 27 per day. This income is insufficient for a sustainable livelihood. The report was submitted on November 21, 2024, following a directive from the Supreme Court. It reveals the dire situation of farmers in states like Haryana and Punjab, where protests have been ongoing.

Current State of Agricultural Income

Farmers in India are struggling with low incomes. The average monthly income for agricultural households is Rs 10,218. This places them at the bottom of the income pyramid. Many farmers are heavily indebted. The report cites a dramatic increase in debt levels. Institutional debt in Punjab reached Rs 73,673 crore in 2022-23. In Haryana, it was even higher at Rs 76,630 crore.

Impact of Debt on Farmers

The rising debt burden is concern. Non-institutional debt is also substantial, accounting for over 21% of total debt in Punjab. The escalating financial pressure has led to a tragic rise in farmer suicides. Over 400,000 farmers and agricultural workers have taken their own lives since 1995. The report describes this as a “suicide epidemic.”

Underlying Causes of the Crisis

The crisis has roots in stagnating agricultural production. After initial gains from the Green Revolution, yields have plateaued. Rising production costs and shrinking job opportunities further exacerbate the situation. Small and marginal farmers are disproportionately affected. At a national level, agriculture employs 46% of workers but generates only 15% of income.

Regional Disparities in Agricultural Performance

Punjab and Haryana are particularly hard hit. Between 2014-15 and 2022-23, Punjab ranked 20th out of 21 major agricultural states, with a growth rate of just 2%. Haryana performed slightly better but still ranked 16th with a growth rate of 3.38%. Both states have lagged behind the national average.

Environmental Challenges

Climate change and environmental degradation pose additional threats. Declining water tables, erratic weather patterns, and poor crop management weaken agricultural productivity. These factors threaten food security and the livelihoods of farmers.

Recommendations for Reform

The committee has made several recommendations to address the crisis. Key proposals include granting legal recognition to the Minimum Support Price (MSP) and implementing debt relief measures. There is also a push for promoting organic farming and improving agricultural marketing systems. Employment generation strategies are essential for revitalising the sector.

Questions for UPSC:

1. Examine the role of agriculture in India’s economy and its impact on rural livelihoods.
2. Discuss the significance of Minimum Support Price in the context of agricultural reforms in India.
3. Critically discuss the environmental challenges faced by Indian agriculture and their implications for food security.
4. With suitable examples, discuss the relationship between agricultural productivity and farmer suicides in India.

Answer Hints:

1. Examine the role of agriculture in India’s economy and its impact on rural livelihoods.

1. Agriculture employs 46% of India’s workforce but contributes only 15% to the national income.
2. The sector is vital for food security and sustenance of rural populations.
3. Many farmers earn below the poverty line, making it difficult to maintain a decent standard of living.
4. Stagnant agricultural income leads to increased debt and economic distress among farmers.
5. Rural economies heavily depend on agriculture, influencing related sectors like agro-industry and services.

2. Discuss the significance of Minimum Support Price in the context of agricultural reforms in India.

1. The Minimum Support Price (MSP) ensures farmers receive a guaranteed price for their produce, stabilizing income.
2. Legal recognition of MSP can protect farmers from market fluctuations and exploitation by middlemen.
3. MSP can incentivize farmers to invest in better farming practices and diversify crops.
4. It plays important role in food security by encouraging the production of essential crops.
5. Implementing MSP can help alleviate rural poverty and reduce farmer suicides linked to financial distress.

3. Critically discuss the environmental challenges faced by Indian agriculture and their implications for food security.

1. Climate change leads to erratic weather patterns, affecting crop yields and farming schedules.
2. Declining water tables due to over-extraction for irrigation threaten long-term agricultural sustainability.
3. Soil degradation and loss of biodiversity hinder agricultural productivity and resilience.
4. Environmental challenges increase the vulnerability of farmers, leading to economic instability.
5. Food security is compromised as agricultural output decreases and prices become volatile.

4. With suitable examples, discuss the relationship between agricultural productivity and farmer suicides in India.

1. Stagnating productivity, especially in states like Punjab and Haryana, correlates with rising farmer distress.
2. Farmers facing low yields and high production costs often fall into debt, leading to suicides.
3. For example, Punjab’s agricultural sector has ranked poorly, impacting farmer livelihoods and mental health.
4. Inadequate support systems exacerbate the situation, as seen in the high suicide rates among indebted farmers.
5. Addressing productivity issues through reforms could reduce the financial pressures leading to suicides.